Warm Runnings Inc. issued ₱400,000 bonds with a nominal interest rate of 4% when the market rate was 5%. This resulted in receiving cash proceeds of ₱389,107.01. The life of the bonds is 3 years. What will be the carrying value of the bonds after 2 years? (Provide solution/ explanation)   a. ₱364,671.29 b. ₱384,671.29 c. ₱392,562.36 d. ₱396,190.48

Q: On January 1, 20x1,  ABC Co. issued 1,000, ₱4,000, 12%, 3-year bonds. Principal is due on December…

A: Present Value of bond = Present value of Interest payment + Present value of Maturity Value = ( 4000…

Q: "Ace Company issued P100,000 face of 6%, 10 year-bonds, with interest payable semi-annually. Ace…

A: Account Titles and Explanation  Debit   Credit  Interest Expense                3,250   Discount…

Q: ino Company purchased a bond with a face value of $100,000 with a stated interest rate of 6% that…

A: Bond is that debt instrument which is used by the organization to finance its long term fund needs,…

Q: On January 1, 20x1, Yoga Co. issued 1,000, P4,000 face amo bonds for P3,807,852. The bonds mature on…

A: The discount on a bond is the difference between the par value of the bond and the proceeds received…

Q: 2. (10 points) Mazeltox Corporation issued $100,000 3-year, 8% stated rate bonds on January 1, 2004.…

A: A bond is a debt security representing a loan made by an investor to a borrower, typically a…

Q: Marmalice Co. issued $4,000,000 of 5-year, 10% bonds, with interest payable semiannually, at a…

A: According to present value, the amounts of money today are worth more than equivalent sums in the…

Q: 3. On 1/1/21, Your Company issued $250,000 of 6% bonds, dated 1/1/21. The bonds pay interest…

A: A bond refers to the instrument which is issued by the government to borrow money when needed. It is…

Q: Required: 1. Determine the goodwill or gain on bargain purchase from the above acquisition.

A: When one company acquired 50% of the capital and assets of another company or more is known as…

Q: The amortization entry at Dec 31, 20X2 will include: PV of P1 at 12% for 3n = . 71178…

A: PV of Bonds = PV of Interest Payments + PV of Principal Payment PV of Interest Payments = Annual…

Q: Wildhorse Pet Supply Company issued $360,000 of 8 %, 10-year bonds at 102. Interest is paid…

A: Amount received on bonds = Face value of bonds*102%

Q: Karson Company. issues 10-year bonds maturity, face value of $200,000 and 8% interest rate. If the…

A: The bonds are issued at discount or premium depending on the market interest rate.

Q: payment of 1 for

A: The correct is ..  d)     A bond can be issued at premium or discount based on the market interest…

Q: Bramble Corp. is about to issue $274,000 of 7-year bonds paying an 9% interest rate, with interest…

A: Computation of the Present value factor at 10% for 7 years…

Q: WholeGoods issue $760,000 of it's 20 year 8% bonds. The bonds were priced to yield 10%. WholeGoods…

A: A journal entry is a form of accounting entry that is used to report a business transaction in a…

Q: e company issues 7.4%, 5-year bonds with a total face amount of $100,000. The market interest rate…

A: Price of bond is the present value of coupon payments plus the present value of the par value of the…

Q: Waldron Inc. issued $400,000 bonds with a stated rate of 7% when the market rate was 5%. They are…

A: Bonds are commonly used by investors to generate income and diversify their investment portfolios.…

Q: On November 1, 20x4, Madison Corp. issued ₱800,00 of its 10-year, 8% term bonds dated October 1,…

A: Bond interest rate is the total interest expense paid on an organization's bonds due over a…

Q: Unleaded Inc. issued a ₱300,000 face value bonds. It carries 10% annual interest rate to be repaid…

A: Formulas: Premium on Bonds Payable = Issue value of the bonds - face value of the bonds Interest…

Q: j) If they use effective interest amortization, how much of the discount (or premium) will they…

A: The effective interest method of amortization determines the portion of interest expense and…

Q: In January 1 20x1 abc company issued a 1000000 10 year bond with a stated interest rate of 9%…

A: Bonds :Bonds is a long-term debts issued by the government and companies to raise funds for their…

Q: Ivanhoe Corporation issues $570,000 of 9% bonds, due in 10 years, with interest payable…

A: Issue price of the bonds = Present value of principal + Present value of interest payments where,…

Q: The company issues 10.0%, 10-year bonds with a total face amount of $1,000,000. The market interest…

A: A bond is an instrument offered in a debt market that pays the investor a regular set of interest…

Q: Krystian Inc. issued 12-year bonds with a face value of $150,000 and a stated rate of 4% when the…

A: Formula: Total cash flows = Principal + Interest

Q: Williams Company issued $600,000 of 10%, 5-year bonds. Interest is paid semiannually, and the…

A: Issue price of bonds = (face value of bonds x present value of $ 1 at market interest rate for the…

Q: Suppose that Best Buy issued $890000 of 8%, 5-year bonds at 108. Assuming straight-line amortization…

A: Amortization of premium :The amortization of bond premium is calculated by dividing the total bond…

Q: Find the value of 1,000 bonds with annual interest rate of 5% making semiannual interest payment for…

A: BOND Bond Is a Security which is Issued by the Company and Government for Funding their Business and…

Q: Oak Branch Inc. issued $100,000 of 5%, 10-year bonds when the market rate was 4%. They received…

A: The bonds make interest payments annually or semiannually. The bonds are long term debt because…

Q: Idaho Inc. issued $600,000 bonds with a stated rate of 9% when the market rate was 7%. They are…

A: Bond is financial instrument used to raise funds for financial obligations. Stated rate is where…

Q: Haiku Inc. issued $600,000 of 10-year bonds with a stated rate of 11% when the market rate was 12%.…

A: Interest Expense = Carrying Value * Market rate of InterestCash Payment of Interest = Face Value *…

Q: If a company issues $100,000 Face Value, 10 year bonds with a contractural  interest rate of 6%,…

A: >Bonds Payable are the source of finance for the companies.   >The bondholders are…

Q: Assume bonds payable are amortized using the straight-line amortization method unless stated…

A: 1.

Q: On 1 January 2022, Belize Social Security Board (SSB) issued 10% bonds with a face value of…

A: Bond interest expense is calculated on beginning carrying value of the bonds for every payment…

Q: On January 1, 20x1,  ABC Co. issued 1,000, ₱4,000, 12%, 3-year bonds. Principal is due on December…

A: Bond In other terms, a bond serves as a contract between the investor and the borrower. A bond is a…

Q: How much can Sunland expect to receive from the sale of these bonds? (

A: The maturity value and the cash interest must be converted to the present value to calculate the…

Q: Waldron Inc. issued $400,000 bonds with a stated rate of 7% when the market rate was 5%. They are…

A: Bond is a financial instrument which is used to raise the fund by large organizations. Government…

Q: 3. Diana Inc. issued $100,000 of its 9%, 5-year bonds for $96,149 when the market rate was 10%. The…

A: The bonds are issued at a discount when the market interest rate is more than what is offered by the…

Q: Warm Runnings Inc. issued ₱400,000 bonds with a nominal interest rate of 4% when the market rate was…

A: Interest paid in year 1 = P400000×4% = P16000

Q: earson Co issue its $140,000 at a price of 94, the stated rate is 6%, the bond term is 4 years, and…

A: Solution: Annual interest payment = Face value of bond * stated rate of interest  = 140000 *6%  =…

Q: The following information pertains to Garden Corp.’s issuance of bonds on July 1, 1998:   Face…

A:

Q: At the beginning of current year, Marble Co. issued 10-year bonds with a face amount of P 5,000,000…

A: Total PV of bonds at the time of issuance = PV of Annual Interest Payments + PV of Redemption Value…

Q: 1. On July 1, Somerset Inc. issued $200,000 of 10%, 10-year bonds when the market rate was 12%. The…

A:

Debenture Valuation

A debenture is a private and long-term debt instrument issued by financial, non-financial institutions, governments, or corporations. A debenture is classified as a type of bond, where the instrument carries a fixed rate of interest, commonly known as the ‘coupon rate.’ Debentures are documented in an indenture, clearly specifying the type of debenture, the rate and method of interest computation, and maturity date.

Note Valuation

It is the process to determine the value or worth of an asset, liability, debt of the company. It can be determined by many processes or techniques. Many factors can impact the valuation of an asset, liability, or the company, like: