Yas.3 On January 1, 2014, Giamartino Inc. issues a 3-year, 12% bond with a face value of $100,000 for $97,580, which is priced to yield 13.0%. The interest payments are due July 1 and January 1 of each year. What is the carrying value of the bond on June 30, 2014 (exclude accrued interest)?

Yas.3 On January 1, 2014, Giamartino Inc. issues a 3-year, 12% bond with a face value of $100,000 for $97,580, which is priced to yield 13.0%. The interest payments are due July 1 and January 1 of each year. What is the carrying value of the bond on June 30, 2014 (exclude accrued interest)?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: Loop Raceway issued 700 bonds, each with a face value of $1,000, a stated interest rate of 6 percent…

A: Bonds that have an amortized face value are ones that pay interest in addition to regular payments…

Q: Ivanhoe Company issues $24300000, 8.0%, 5-year bonds dated January 1, 2024 on January 1, 2024. The…

A: The bonds are the long-term liabilities that are issued to raise the money from the market orThe…

Q: On January 1, 2018, Wauwatosa Inc. issued 5- year bonds with a fave value of $200,000 and a stated…

A: When the issue price of the bond is higher than its face value, the bonds are said to be issued at a…

Q: Tano Company issues bonds with a par value of $85,000 on January 1, 2021. The bonds' annual contract…

A: The bonds are issued to raise the money from the market or investors. The bonds are issued at a…

Q: On October 1, 2023, Ross Wind Energy Inc. issued a $1,690,000, 11.0%, seven-year bond. Interest is…

A: Bonds are financial instruments that can be issued by businesses and governments. A loan taken by…

Q: 3. Chapter 9 Homework

A: Prepare journal entry to record the issuance of bonds:

Q: On September 30, 2024, the Techno Corporation issued 8% stated rate bonds with a face amount of $120…

A: A bond is a type of debt investment where an investor lends money to an entity, typically a…

Q: 12. On January 1, 2017, Milky-way Company issues $2million, 10 year, 7% bonds at 98, with interest…

A: In the above question Milky way has issued $2 million 7% bonds on January 1, 2017 on discount and…

Q: Quatro Company issues bonds dated January 1, 2021, with a par value of $400,000. The bonds' annual…

A: The bonds are the financial instruments that are used to raise money from the market or investors.…

Q: On January 1, 2022, Sheridan Corporation issued $2,250,000 face value, 7%, 10-year bonds at…

A: Journal entries are the primary reporting of the business transactions in the books of accounts. It…

Q: A1 please help.....

A: Detailed explanation:1. Amount of the discount on Bonds issued Par Value of Bonds issued ---------$…

Q: On June 30, 2024, Gunderson Electronics issued 8% stated rate bonds with a face amount of $300…

A: A bond is a fixed income security which offers the investor a fixed set of periodic coupon payments…

Q: Determine the issue price of bonds:

A: The price of the bond is the PV of all future interest (also called coupons) and par value…

Q: Stephanie Ram Corporation have a $1,120,000 "bond issue" dated February 1, 2016 due in 10 years with…

A: a) Issuance of the Bond on April 1, 2016Debit: Cash ($1,078,700)Credit: Bonds Payable…

Q: Nicholas Ram Corporation have a $1,700,000 "bond issue" dated March 1, 2016 due in 15 years with an…

A: Journal entry is the act of keeping records of transactions in an accounting journal. An accounting…

Q: Company X issues 100 bonds totaling $100,000 on January 1st, 2022 at 3% interest when the market…

A: Journal Entry : Method of recording financial transactions in the book of original entry by debiting…

Q: On March 1, 2021, Baddour, Inc., issued 10% bonds, dated January 1, with a face amount of $160…

A: Bonds payable is a type of instrument where by an amount is borrowed for a fixed period with fixed…

Q: BlueLtd. issued a $1,164,000, 10-year bond dated January 1, 2020. The bond was sold to yield 12%…

Q: 9.2 On Jan. 1, 2018, UMPI, Inc. issued $600,000 of 10% bonds, due in 5 years. The bonds pay interest…

Q: 21. On January 1, 2018, when the market rate of interest was 6% (APR), Habs Company issued two-year…

A: The objective of this question is to calculate the issue price and discount of a bond at the time of…

Q: On January 1, 2017, Ellison Co. issued eight-year bonds with a far value of S6,000,000 and a stated…

A: Financial Management: Financial management comprises of two words i.e. Finance and management.…

Question

Yas.3

On January 1, 2014, Giamartino Inc. issues a 3-year, 12% bond with a face value of $100,000 for $97,580, which is priced to yield 13.0%. The interest payments are due July 1 and January 1 of each year.

What is the carrying value of the bond on June 30, 2014 (exclude accrued interest)?

Definition Definition Calculates the present value of a bond's expected future periodic coupon payments. Bond valuation determines the theoretical fair value of a particular bond and helps investors estimate what rate of return they could expect. The bond's theoretical fair value is computed by discounting the future cash flows or coupon payments by an applicable discount rate.

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1: Introduction

VIEW

Step 2: Calculation for carrying value of bonds payable

VIEW

Solution

VIEW

Step by step

Solved in 3 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

Kingbird corporation issued $460,000 8% 20 year bond on January 1,2022 for $418,008.this price resulted in an effective interest rate of 9% on the bonds. Interest is payable annually on January 1. Kingbird uses the effective interest method to amortize bond premium or discount. Prepare the journal entry to record the payment of interest on January 1 2023
Tano issues bonds with a par value of $94,000 on January 1, 2017. The bonds' annual contract rate is 6%, and interest is paid semiannually on June 30 and December 31. The bonds mature in three years. The annual market rate at the date of issuance is 8% and the bonds are sold for $89,071. 1. What is the amount of the discount on these bonds at issuance? 2. How much total bond interest expense will be recognized over the life of these bonds? 3. Prepare an amortization table using the straight-line method to amortize the discount for these bonds. Complete this question by entering your answers in the tabs below. Required 3 Prepare an amortization table using the straight-line method to amortize the discount for these bonds. (Round your intermediate calculations to the nearest dollar amount.) Required 1 Required 2 Semiannual Period- Unamortized Discount End 01/01/2017 06/30/2017 12/31/2017 06/30/2018 12/31/2010 06/30/2019 12/31/2019 Carrying Value Required 2
please provide correct answer
aj.7
answer is A: how do you get to this answers?
please fill the pictures out Quatro Company Issues bonds dated January 1, 2021, with a par value of $790.000. The bonds' annual contract rate Is 9%, and Interest Is pald semiannually on June 30 and December 31. The bonds mature In three years. The annual market rate at the date of Issuance Is 8%, and the bonds are sold for $810.694. 2 How much total bond Interest expense will be recognized over the Iife of these bonds? 3. Prepare a straight-line amortization table for these bonds.
Terra Ccompany issued a $300,000, 7.50%, 10-year bond on June 1, 2015. Additional information on the bond follows: Bond Date: January 1, 2015 December 31, 2024 Maturity Date: Yield (Market) Rate: Interest Payment Date:: Terra's year end: Required: Round calculations to the nearest dollar a) Calculate the present value of the bond assuming that it had been issued on January 1, 2015. Show calculations/keystrokes. 8% Interest is paid annually on December 31 of each year September 30 b) Prepare a bond amortization table from January 1, 2015 until December 31, 2018. Show each annual interest payment. c) Calculate the total amount of cash received by Terra on June 1, 2015, reflecting the fact the bond was issued on June 1, 2015. Make the journal entry to record the bond issue on June 1, 2015.