Q: Issuing Bonds at a Premium
A: Bonds issued at premium means bonds issued at a price higher than par value.
Q: Bond Issue B Period Ending Apr. 1/18 Jul. 1/18 Apr. 1/26 Jul. 1/26 Oct. 1/26 (A) Cash (B) Period…
A: Lets understand the basics.Journal entry is required to make to record event and transaction that…
Q: Assume that a bond will make payments every six months as shown on the following timeline (using…
A: Answer - Calculation of Maturity of the Bond (in years) - Payment is made in every 6…
Q: Company issued bonds with a face amount of $100,000 Maturity Period…
A: Bonds payable are financial instruments. It representing a company’s commitment to pay back a…
Q: Assume that H Company purchases $18,000 of U.S. Treasury bonds at their face amount on September 14,…
A: Accrued interest is calculated on the face value of the bonds from the last payment of interest date…
Q: Demopoulos Company acquired $145,800 of Marimar Co., 8% bonds on May 1 at their face amount.…
A: Introduction: Journals: Recording of a business transactions in a chronological order. First step in…
Q: Bond prices depend on the market rate of interest, stated rate and time Compute the price of the…
A: Bonds payable are one of the sources of finance and are shown as liability. If the interest rate is…
Q: Determining Bond Features and Selling Price On January 1 of Year 1, the following debt was…
A: When a bond, i.e., a debt security that doesn't provide interest (also known as coupons), and rather…
Q: On 1/1/2019 BY company purchased 4000 bonds of Arab Bank the par value per bonds OMR45, bonds…
A: Bonds can be defined as a form of fixed income security which provides regular income at equal…
Q: On October 1 a company sells a 3-year, $2,500,000 bond with an 8% stated interest rate. Interest is…
A: Given, Face value = $2,500,000 Coupon rate = 8% Issue at 89.35%
Q: HİLİ Corporation had the following bond issue: Date of issue/sale: May 1, 20-A Principal: $500,000…
A: As posted multiple sub parts we are answering only first three sub parts kindly repost the…
Q: On January 1 of Year 1, the following debt was authorized and issued by Anderson Company. 1.…
A: When a bond, i.e., a debt security that doesn't provide interest (also known as coupons), and rather…
Q: The Excel formula to compute the accrued days in PH Bonds
A: The excel formula to calculate the accrued days is DAYS360.
Q: Issuance of Long-Term Debt M. Nickles Company issued $1,500,000 of bonds for $1,487,200. Interest is…
A: 1. Record journal entry for issuance of bonds as shown below:
Q: on january 1,2018 naperville corporation issued 2300,000 16% 5 year bonds wirh interest payable on…
A: Interest payment = $2,300,000*16%*6/12 Interest payment = $184,000
Q: 1. Calculate the total annual interest, total cost, and current yield for the bonds. (Round the…
A: It represents a debt instrument issued for the purpose of raising debt capital by the issuer from…
Q: P6-16 Bond valuation: Annual interest Calculate the value of each of the bonds shown in the…
A: Bond Valuation refers to the present value of the future cash flow and the maturity value of the…
Q: Make a journal entry to record the issuance of a bond with a face amount of $1,000,000 sold at 98.
A: Bonds are considered a financial instrument used to raise finance for the organization. It is also…
Q: The journal entry on the maturity date to record the retirement of bonds with a face value of…
A: Bonds payable are repaid at the time of maturity where the cash is credited and the bonds payable…
Q: On January 1, 2020, Sheridan Company purchased $440,000, 10% bonds of Aguirre Co. for $407,614. The…
A: A bond amortization table or schedule is a financial document that outlines the periodic interest…
Q: Issuing Bonds at a Discount On the first day of the fiscal year, a company issues a $4,700,000, 6%,…
A: Journal entry to record the issuance of bonds: Date Account Titles Debit ($) Credit ($) xxx…
Q: S14-4 Pricing bonds Bond prices depend on the market rate of interest, stated rate of interest. and…
A: Bonds are defined as the corporate debt units, which are issued by the corporation as well as…
Q: The interest rate printed on the bond certificate a. is generally paid monthly. b. All of these.…
A: The interest rate printed on the bond certificate remains the same until maturity.
Q: Calculate the cash price of the following bond, sold on September 21: par = $1,000; coupon rate = 6…
A: Cash price:The term "cash price" refers to the amount of money that is required to purchase a…
Q: The Peoples National Bank raised capital through the sale of $50 million face value of four percent…
A: Price of bond is the present vaue of coupon payment and plus present value of par value of the bond.
Q: nsider the following two Treasury securities: Bond Price Modified duration (years) A $100 6 B…
A: Modified duration shows that how much would be the change in the price of bond with change in the…
Q: A. В E F 1 On January 1, Ruiz Company issued bonds as follows: 2 Face Value: 3 Number of Years: 4…
A: The bond price of a bond is the current worth of a bond on the basis of the present value of all the…
Q: B. Complete the information below using Bonds.
A: Bond: It is a debt instrument issued by the firm to raise debt capital from the investors. Thus, the…
Q: If $1,178,000 of 10% bonds are issued at 102 3/4, the amount of cash received from the sale is a.…
A: The question is asking us to calculate the amount of cash received from the sale of bonds. The bonds…
Q: Calculate the accrued interest (in $) and the total proceeds (in $) of the bond sale. (Round your…
A: Accrued interest refers to the interest amount which has been incurred and accrued but not paid yet.…
Q: Issuing bonds at a discountOn the first day of the fiscal year, a company issues a $3,500,000, 6%…
A: Premium (discount) on bonds issue = Issue value - face value of bonds = $3,350,000 - $3,500,000 =…
Q: A $7,000; 9% bond is sold at 93. When the bond is issuede the Cash account will be incerased by :…
A: Bonds :— It is one of the type of securities that pays fixed periodic interest and face value amount…
Q: Bonds pay the face value to the investor when they are a. held over 10 years. b. held 20 years.…
A: A bond offering at a premium implies the cost is estimated at a premium or costlier than the bond's…
Q: onsider the following two Treasury securities: Bond Price Modified duration (years) A $100 6…
A: Modfied duration indicates that how much would decrease or increase in prices of bonds with increase…
Q: A $1,000 bond quoted at 98 could be purchased or sold for a. $980. b. $1,098. c. $1,000. Od. between…
A: Face Value = fv = $1000Quoted Price = qp = 98
Q: Majestic Corporation holds an investment in Cromwell bonds that pays interest eachOctober 31.…
A: Given is: Majestic Corporation holds an investment in Cromwell bonds that pays interest eachOctober…
Q: Bonds: issued 8% / 2 yr / Par $7,000 bond Market value 6% What is selling price?
A: Bond is debt-instrument that is used by organizations to raise debt funds from public-at-large.…
Q: If $457,000 of 8% bonds are issued at 94, what is the amount of cash received from the sale? Select…
A: The bonds can be issued at discount or premium depending on market rate of interest.
Q: If $1,059,000 of 12% bonds are issued at 102 3/4, the amount of cash received from the sale is a.…
A: The amount of the cash received from the sale of the bond is determined by multiplying the face…
Q: What is the typical relationship among interest rates onthree-month Treasury bills, long-term…
A: Treasury bills are governmental securities which are risk-free whether issued for short term or long…
Q: If $1,153,000 of 9% bonds are issued at 102 1/2, The amount of cash received from the sale is…
A: Bonds are considered a cheaper source of finance. It is because the interest on bonds is a…
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- Issuing Bonds at a Premium On the first day of the fiscal year, a company issues a $8,700,000, 7%, 10-year bond that pays semiannual interest of $304,500 ($8,700,000 × 7% × ½), receiving cash of $10,833,863. Journalize the bond issuance. If an amount box does not require an entry, leave it blank.Calculate the accrued interest (in $) and the total purchase price (in $) of the bond purchase. (Round your answers to the nearest cent.) Time Since Last Interest Company Company 2 Coupon Market Rate Price 9.4 79.75 23 days $ Accrued Interest Commission per Bond $9.35 Bonds Purchased 15 69 Total PriceA $2,600 credit balance in the Premium on Bonds Payable account represents which of the following? Select one: a. An overpayment for a bond purchase b. An underpayment for a bond purchase c. The current amount of amortization expense d. The unamortized amount of premium earned on a bond issue
- Analyzing and Reporting Financial Statement Effects of Bond Transactions On January 1 of the current year, Shields Inc. issued $700,000 of 9%, 20-year bonds for $769,275, yielding a market (yield) rate of 8%. Semiannual interest is payable on June 30 and December 31 of each year. a. Show Excel inputs to confirm the bond issue price. Note: Round your answer to two decimal places. rate= nper pmt FV => Answer = $ b. Indicate the financial statement effects using the template for (1) bond issuance, (2) semiannual interest payment and premium amortization on June 30 of the current year, and (3) semiannual interest payment and premium amortization on December 31 of the current year. Note: For each account category, indicate the appropriate account name. Enter "N/A" for any account category that is not used for a given transaction. Note: Indicate a decrease in an account category by including a negative sign with the amount. Note: Round your answers to the nearest whole dollar. Balance Sheet…Calculate the total annual interest, total cost, and current yield for the bond. (Round the "Current yield" to the nearest tenth percent and other answers to the nearest whole dollar.) Number of bonds Total annual Bond Selling price Total cost Current yield purchased interest Wang 6 1/2% 26 4. 68.125 % 96 Prev 9 of 18 Next > MPeriod Cash Paid Interest Expense Interest in Carrying Value Carrying Value Issue Date $85,940 1 $4,100 $ 3,438 $662 85,278 2 4,100 3,411 689 84,589 1. & 2. Record the bond issue assuming the face value of bonds payable is $79,000 and first interest payment. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.) Record the bond issue. Event General Journal Debit Credit 1 Record the first interest payment. Event General Journal Debit Credit 2
- Calculator The journal entry a company records for the issuance of bonds when the contract rate and the market rate are the same is to debit Cash and Discount on Bonds Payable, credit Bonds Payable debit Cash, credit Premium on Bonds Payable and Bonds Payable debit Cash, credit Bonds Payable debit Bonds Payable, credit Cash 4:14 PMDetermining Selling Prices of Bonds Under Different Interest Assumptions Olay Inc. issues $50,000, 8%, 10-year bonds payable on January 1. Calculate the selling price of the bonds under the following separate assumptions. Round your answer to the nearest whole number. Do not use negative signs with your answers. a. The bonds pay cash interest annually ($4,000) and the market rate of interest on similar bonds is 10%. b. The bonds pay cash interest annually ($4,000) and the market rate of interest on similar bonds is 8%. c. The bonds pay cash interest annually ($4,000) and the market rate of interest on similar bonds is 6%. d. The bonds pay cash interest semiannually ($2,000) and the market rate of interest on similar bonds is 10%. e. The bonds pay cash interest semiannually ($2,000) and the market rate of interest on similar bonds is 8%. f. The bonds pay cash interest semiannually ($2,000) and the market rate of interest on similar bonds…Most corporate bonds make coupon payments Question 8 options: a) annually b) semi-annually c) quarterly d) monthly e) weekly
- A $10,000 bond quoted at 106 would sell for: A. $10,106. B. $106. C. $10,000. D. $10,600.If the bonds payable account has a balance of $900,000 and the discount on bonds payable account has a balance of $72,000, what is the carrying amount of bonds? A. $828,000 B. $900,000 C. $972,000 D. $580,000