You AnsweredCorrect AnswerVeggie Company issued $3,000,000, 3%, 7-year bonds,interest payable annually. The market rate of interest was5%. The issuance price of the bonds is3,806,109.142,652,813 margin of error +/-2

Bonds payable refers to a type of long-term debt that a company or organization issues to borrow…

Answered: Veggie Company issued $3,000,000, 3%,…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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26. A company issued 10-year, 9% bonds with a par value of $500,000 when the market rate was 9.5%. The company received $484,087 in cash proceeds. Using the effective interest method, prepare the issuer's journal entry to record the first semiannual interest payment and the amortization of any bond discount or premium. (Round answers to the nearest dollar)
A company issued 8%, 15-year bonds with a par value of $470,000 that pay Interest semiannually. The market rate on the date of issuance was 8%. The journal entry to record each semiannual interest payment is: Multiple Choice 58:17 Debit Bond Interest Expense S18,800; credit Cash $18,800. Debit Bond Interest Expense $37,600; credit Cash $37,600. Debit Bond Interest Payable $31,333; credit Cesh $31,333. Debit Bond Interest Expense $420,000; credit Cash $420,000. due. No entry needed, since no interest is paid until the bond
Beluga Inc. issued 10-year bonds with a face value of $150,000 and a stated rate of 3% when the market rate was 4%. Interest was paid annually. The bonds were sold at 87.5. A. What was the sales price of the bonds? B. Were they issued at a discount, a premium, or at par?
Ivanhoe Pet Supply Company issued $400,000 of 8 %, 10-year bonds at 102. Interest is paid annually, and the straight-line method is used for amortization. Assume that the market rate for similar investments is 7%. The bonds are issued on the date of the bonds.
XYZ Corporation issued $20,000,000 of 5 year, 9% bonds on April 1 of the current year at face value, with interest payable semi-annually on April 1 and October 1. The bonds were issued at a market interest rate of 8%, resulting in XYZ Corporation receiving cash of $20,811,020. Journalize the entries to record the following transactions: Issuance of the bonds on April 1 Paid the first semi-annual interest on the bonds on October 1 Is the semi annual interest done as: 20,000,000*9%*1/2 = 4,50,000 or interest Expense Debit 720,000 [(20,000,000 x 9%)/2] Premium on Bonds Payable Debit 27,050 (amortization of premium) Cash Credit 747,050
Kier Company issued $740,000 in bonds on January 1, Year 1. The bonds were issued at face value and carried a 3-year term to maturity. The bonds have a 5.50% stated rate of interest interest is payable in cash on December 31 each year. Based on this information alone, what are the amounts of interest expense and cash flows from operating activities, respectively, that will be reported in the financial statements for the year ending December 31, Year 1? Multiple Choice O Zero and $40,700 $40,700 and $40,700 Zero and Zero $40,700 and Zero
Beluga Inc. issued 10-year bonds with a face value of $100,000 and a stated rate of 3% when the market rate was 4%. Interest was paid annually. The bonds were sold at 87.5. What was the sales price of the bonds? Were they issued at a discount, a premium, or at par?
Diana Inc. issued $150,000 of its 9%, 5-year bonds for $144,218 when the market rate was 10%. The bonds pay interest semi-annually. Prepare an amortization table for the first three payments. Round intermediate and final answers to whole dollar amount. Cash InterestPayment Interest onCarrying Value Amortization ofDiscount Carrying Value
Sheffield Corporation issues $430,000 of 9% bonds, due in 10 years, with interest payable semiannually. At the time of issue, the market rate for such bonds is 10%. Click here to view factor tables. Compute the issue price of the bonds. (Round present value factor calculations to 5 decimal places, e.g. 1.25124 and the final answer to 0 decimal places, e.g. 58,971) Issue price of the bonds $
Pearl Corporation issues $390,000 of 9% bonds, due in 11 years, with interest payable semiannually. At the time of issue, the market rate for such bonds is 10%. Compute the issue price of the bonds. (Round present value factor calculations to 5 decimal places, e.g. 1.25124 and the final answer to 0 decimal places, e.g. 58,971.) Issue price of the bonds $______
Diana Inc. issued $300,000 of its 5%, 5-year bonds for $287,215 when the market rate was 6%. The bonds pay interest semi-annually. Prepare an amortization table for the first three payments. Round intermediate and final answers to whole dollar amount. Cash Interest Interest on Amortization of Payment Carrying Value Discount Carrying Value Jan. 1. Year 1 June 30, Year 1 Dec. 31, Year 1 June 30, Year 2
Matt Enterprises issued $200,000 of 10 percent, five-year bonds with interest payable semiannually. Determine the issue price if the bonds are priced to yield: a) 10 percent b) 6 percent c) 12 percent

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Veggie Company issued $3,000,000, 3%, 7-year bonds, interest payable annually. The market rate of interest was 5%. The issuance price of the bonds is