Your Company issued a $150,000 face value bond on January 1, 2020. The 20 year term bond was issued at 102 and had a 4% stated rate of interest that is payable on December 31st of each year. What is the annual interest expense? THIS IS NOT THE SAME AS CASH PAYMENT TO BOND HOLDER.
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Your Company issued a $150,000 face
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- A company issued bonds with a $100,000 face value, a 5-year term, a stated rate of 6%, and a market rate of 7%. Interest is paid annually. What is the amount of interest the bondholders will receive at the end of the year?Chung Inc. issued $50,000 of 3-year bonds on January 1, 2018, with a stated rate of 4% and a market rate of 4%. The bonds paid interest semi-annually on June 30 and Dec. 31. How much money did the company receive when the bonds were issued? The bonds would be quoted at what rate?Krystian Inc. issued 10-year bonds with a face value of $100,000 and a stated rate of 4% when the market rate was 6%. Interest was paid semi-annually. Calculate and explain the timing of the cash flows the purchaser of the bonds (the investor) will receive throughout the bond term. Would an investor be willing to pay more or less than face value for this bond?
- On July 1, Somerset Inc. issued $200,000 of 10%, 10-year bonds when the market rate was 12%. The bonds paid interest semi-annually. Assuming the bonds sold at 58.55, what was the selling price of the bonds? Explain why the cash received from selling this bond is different from the $200,000 face value of the bond.On July 1, a company sells 8-year $250,000 bonds with a stated interest rate of 6%. If interest payments are paid annually, each interest payment will be ________. A. $120,000 B. $60,000 C. $7,500 D. $15,000On January 1, a company issued a 5-year $100,000 bond at 6%. Interest payments on the bond of $6,000 are to be made annually. If the company received proceeds of $112,300, how would the bonds issuance be quoted? A. 1.123 B. 112.30 C. 0.890 D. 89.05
- please use P*R*T fomular as well. ThanksOn January 1, 2024, Burton Sales issued $23,000 in bonds for $35,800. These are ten-year bonds with a stated rate of 9% and pay semiannual interest. Burton Sales uses the straight-line method to amortize the bond premium. After the first interest payment on June 30, 2024, what is the balance of Premium on Bonds Payable? (Round your intermediate answers to the nearest dollar.) a. debit of $800 b. credit of $12,160 c. credit of $235 d. debit of $14,400The Smart Company sold Rs. 500,000 of 8 percent, 20-year bonds on April 1, 2011, at 105. The semiannual interest payment dates are March 31 and September 30. The market interest rate is 7.5 percent. The company's fiscal year ends September 30. Use the effective interest method to calculate the amortization. With regard to the bond issue on April 1, 2011: How much cash is received? How much is Bonds Payable? What is the difference between a and b called and how much is it? With regard to the bond interest payment on September 30, 2011: How much cash is paid in interest? How much is the amortization? How much is interest expense? With regard to the bond interest payment on March 31, 2012: How much cash is paid in interest? How much is the amortization? How much is interest expense?
- Alyssa Company issued P 10,000,000 bonds on January 1, 2021. The bonds pay interest annually at 10% on the outstanding bond balance. The face value of the bonds is payable in installments of P 2,000,000 every December 31 starting December 31, 2021. The bonds were sold to yield 14%. Do not round off your present value factors How much cash was paid on December 31, 2021? What is the interest expense for the year 2021? What is the non-current portion of the liability on December 31, 2021? How much cash was paid on December 31, 2022? How much cash was paid on December 31, 2023? What is the current portion of the liability on December 31, 2023? What is the non-current portion of the liability on December 31, 2023? How much cash was paid on December 31, 2024? How much cash was paid on December 31, 2025?On January 1, 2025, Paxton Planning Services issued $56,000 of 2% bonds that mature in five years. They were issued at face value. The bonds pay annual interest payments on December 31 of each year. What is the journal entry for the interest payment made on December 31, 2025? OA. Interest Expense O B. Cash OC. Cash Cash Interest Expense Interest Expense OD. Interest Expense Cash 560 560 1,120 1.120 560 560 1,120 1,120 CHEOn January 1, 2018, Wawatosa Inc. issued 7-year bonds with a face value of $100,000 and a stated interest rate of 10% payable semi-annually on July 1 and January 1. The bonds were sold to yield 8%. A. Assuming the bonds were sold at 104.732, what is the selling price of the bonds? $fill in the blank 1 B. Were they issued at a discount or a premium?