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: On January 1, 2018, Harvey Inc. issued $1,000,000 of 10 years, 6% bonds when the market 10%. The…

A: solution 1: Computation of bond price Table values are based on: n= 20 i= 5.00%…

Q: On June 30, 2024, Single Computers issued 6% stated rate bonds with 2039 (15 years). The market rate…

A: Issue price of bond means the price at which the bond is issued. It could be issued at par, premium…

Q: Jan 1(#1) - Issued a $2,000,000 Bond at face rate of 5% when market rate = 6%. Bond is a 5-year term…

A: In a table known as a bond amortisation schedule, the amount of interest paid, interest accrued, and…

Q: On June 30, 2016, Hardy Corporation issued $10.5 million of its 8% bonds for $9.5 million. The bonds…

A: Bond Issued = 8% or 4% SemiannuallyBonds were priced to yield = 10% or 5% Semiannually Calculation…

Q: On January 1, 2018, Tantor Inc. issued $20,000,000 worth of face value bonds, which pay interest…

A: Market Price of the bonds = Present value of principal + Present value of interest payments = face…

Q: NY Fitness Company issued $10,000,000, 5-year, 7% callable bond on January 1, 2018 when the market…

A: Bond: It is the loan paid by an investor to a borrower. Bonds are used by companies. Interest is…

Q: On July 1, 2014, Oladipo Corporation issued 11% bonds in the face amount of P2,000,000 that mature…

A: Carrying value is present value of future cash flows discount @5%(10/2)

Q: 1 On February 1 2016, Ellison Co. issued eight-year bonds with a face value of $10,000.000 and a…

A: Journal entries are the building blocks of accounting, which is the act of recording the economic…

Q: PART I- On November 1, 2020, your company issued $600,000 of 5 year 9% bonds when the interest rate…

A: Note: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question…

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: 2. On October 1, 2011, Sammy Company issued 8,000,000 of its 10-year 8% term bonds dated October 1,…

A: Solution Given Face value 8000000 Life 10 year Coupon rate 8% Market rate…

Q: 1. On January 1, 2011, Boyle Company issued 9% bonds in the face amount of P5,000,000 which nature…

A: The selling price of bonds will be equal to the present value of all future cash inflows.

Q: A. On January 1, 2021, Bradley Company issued $100,000, 9%, 4-year bonds. Interest is paid…

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 July 1, 2019, Fewa Company issued P4,000,000 of 16% bonds to yield 14%. Interest is payable…

Q: 1 On February 1, 2016, Ellison Co. issued eight-year bonds with a face value of S10,000,000 and a…

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

Q: SM Corporation issued a 5-year 9.5% P1,000,000 face value bonds to YG Corporation in an 8.16% market…

A: Here asked for the bond valuation and its calculation to make the effective bond valuation related…

Q: 1 On February 1 2016, Ellison Co. issued eight-year bonds with a face value of S10,000,000 and a…

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

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: 14. On January 1, 2012, London Company issued its 9% bonds in the face amount of P2.0 million which…

A: Bonds are a form of loan or debt that is being issued by the company, on which regular interest…

Q: On January 1, 2011, Boyle Company issued 9% bonds in the face amount of P5,000,000 which mature on…

A: Answer) Calculation of Selling Price of Bonds Face Value of Bonds = P 5,000,000 Annual Coupon rate =…

Q: 3. Chapter 9 Homework

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

Q: On January 1, 2015, ABC Co. issued 5-year bonds in the amount of $50, 000. Interest of 4% is…

A: Bonds: Bonds are the financial debt instruments issued by the corporations to raise capital for the…

Q: 2. On October 1, 2011, Sammy Company issued 8,000,000 of its 10-year 8% term bonds dated October 1,…

A: c. 112,471.65 Balance of Discount on Bonds Payable on December 31,2020

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: Scenario 1 On January 1, 2018, Harvey Inc. issued $1,000,000 of 10 years, 6% bonds when the…

A: “Since you have asked multiple question, we will solve the first question for you. If you want any…

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: On March 1, 2021, JebaMac Company issued 6% term bonds with a face amount of P1,000,000 due March 1,…

A: Jeba Company has recognized the bond payable as per amortized cost method using the effective…

Q: mature in 2040 (20 years). The market yield for bonds of similar risk and maturity is 12%. Interest…

A: A journal entry is a basic accounting record that is used to chronologically track financial…

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: B. On January 1, 2016, Gibson Co. issued eight-year bonds with a face value of $20 0,000,000 and a…

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

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

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

9.2 On Jan. 1, 2018, UMPI, Inc. issued $600,000 of 10% bonds, due in 5 years. The bonds pay interest semi-annually on July 1 and January 1. The bonds effective yield 12%. UMPI uses the effective-interest method (see PV Tables next page). Prepare UMPI’s journal entries for a thru c. The January 1 issuance The July 1 interest payment The December 31 adjusting journal entry Prepare a full Bond Amortization Schedule
21. On January 1, 2018, when the market rate of interest was 6% (APR), Habs Company issued two-year bonds with a maturity value of $1,000. The bonds have a 4% stated rate (APR) and pay interest semiannually on June 30 and December 31. sdr 11467 M = 4 a) Calculate the bond's issue price and its discount as of the date of issue. b) How much of the bond's discount is amortized after the first coupon is paid?
On January 1, 2017, Ellison Co. issued eight-year bonds with a fase value of S6,000,000 and a stated interest rate of6%, payable semlannually on June 30 and December 31. The bonds were sold to yield 8%. Table values are: Present value of 1 for 8 periods at 6% Present value of 1 for 8 periods at 8% Use the following to answer question 12: .627 .540 Present value of 1 for 16 periods at 3% Present value of 1 for 16 periods at 4% Present value of annuity for 8 periods at 6% Present value of annuity for 8 periods at 8% Present value of annuity for 16 periods at 3% Present value of annuity for 16 periods at 4% .623 .534 6.210 5.747 12.561 11.652 honds issued 12. The present value of the interest is A) $2,068,920. B) $2,097,360. C) $2,235,600. D) $2,260,980.
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
q6 Sun Corp. markets a 10-year bond issue dated January 1, 2018. The bonds pay interest semiannually on January 1 and July 1. If these bonds are sold on August 1, 2018, how many months accrued interest must be paid by the purchaser and over how many months would any discount on the bonds be amortized?A. Accrued interest- 7 month; Amortization period- 120 monthsB. Accrued interest- 7 month; Amortization period- 113 monthsC. Accrued interest- 1 month; Amortization period- 120 monthsD. Accrued interest- 1 month; Amortization period- 113 months
Af the fimе oj of On January 1, 2007, FFF Inc. issued its 10 percent bonds in the face amount of P1,500,000. They mature on January 1, 2017. The bonds were issued for P1,329,000 to yield 12 percent, resulting in bond discount of P171,000. FFF uses the effective-interest method of amortizing bond discount. Interest is payable July 1 and January 1. 5. For the six months ended June 30, 2007, FFF should report bond interest expense of Nos. 6-8 pertains to the following: On February 28, 2017, GGG Industries issued 10% bonds, dated January 1, with a face amount of P48 million. The bonds were priced at P42 million (plus accrued interest) to yield 12%. Interest is paid semiannually on June 30 and December 31. Required: What would be the amount(s) related to the honds GCC 6.
please provide correct answer
aj.7
22.1 ABC Company issues P5,000,000, 6%, 5-year bonds dated January 1, 2025, on January 1, 2025. The bonds pay interest semiannually on June 30 and December 31. The bonds are issued to yield 5%. ABC uses an effective interest method of amortization and 4-decimal PVF. The initial amount of the bond liability is (Round off your answer to the nearest peso.)
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.
Compu tech Ltd issued OMR 100,000, 6% 5 years term bonds on 1 January2020, it is due for redemption on 1 January 2025, with interest payable once in six months on 1 July and 1 January. The effective interest Rate (Market Rate)was 4%.The issue price of the Bond is?
On January 1, 2017, Barclays bank issued 8 %, 5-year bonds with a face amount of K750,000 to Puma Zambia Interest is payable annually at the beginning of the year. The bond is issued for an effective interest rate of 10%. In addition to the purchase price Puma paid the broker K 30,000 to facilitate the purchase of this bond. Requireda) Calculate the value of the bond and prepare the entries to record the issuance of the bonds in the books of Barclays and Pumab) Prepare the entries to record the first annual interest accrual and the payment assuming that the company uses effective-interest amortization. In both Barclays and Puma c) At the end of year 3 Barclays decided to buy back this bond at a cost of K600, 000.Calculate the gain on loss on this transaction and show the double entry also advice if the bond should be bought back. In both Barclays and Puma