The note about debt included in the financial statements of Healdsburg Company for the year ended December 31, 2023 disclosed the following: 7.95% notes due 2024 8.45% notes due 2029 1 8.70% notes due 2038 8.33% notes due 2043 7.25% notes due 2025 $ 214,400,000 $ 358,200,000 $ 239,000,000 Annual payments $ 214,000,000 $ 26,400,000 The above table summarizes the long-term debt of the Company on December 31, 2023. All of the notes were originally issued at their face (maturity) value and have been gradually repaid over time so that these amounts are the remaining balances at this date. Assume that the notes pay interest annually and mature on December 31 of the respective years. Required: Suppose that Healdsburg renegotiates the 8.70% notes on December 31, 2029, when the going interest rate is 7%. Healdsburg agrees to make 12 equal annual installments, commencing on December 31, 2030, rather than pay the annual interest payments and the $239 million in a single amount at maturity. What would the annual payments be? Note: Use tables, Excel, o financial calculator. Enter your answer in whole dollars. Round your final answer to nearest whole EVA of $1. PVA of $1. EVAD of $1 and PVAD of $1 dollar. (EV of $1. EV of S1,

The note about debt included in the financial statements of Healdsburg Company for the year ended December 31, 2023 disclosed the following: 7.95% notes due 2024 8.45% notes due 2029 1 8.70% notes due 2038 8.33% notes due 2043 7.25% notes due 2025 $ 214,400,000 $ 358,200,000 $ 239,000,000 Annual payments $ 214,000,000 $ 26,400,000 The above table summarizes the long-term debt of the Company on December 31, 2023. All of the notes were originally issued at their face (maturity) value and have been gradually repaid over time so that these amounts are the remaining balances at this date. Assume that the notes pay interest annually and mature on December 31 of the respective years. Required: Suppose that Healdsburg renegotiates the 8.70% notes on December 31, 2029, when the going interest rate is 7%. Healdsburg agrees to make 12 equal annual installments, commencing on December 31, 2030, rather than pay the annual interest payments and the $239 million in a single amount at maturity. What would the annual payments be? Note: Use tables, Excel, o financial calculator. Enter your answer in whole dollars. Round your final answer to nearest whole EVA of $1. PVA of $1. EVAD of $1 and PVAD of $1 dollar. (EV of $1. EV of S1,

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter14: Financing Liabilities: Bonds And Long-term Notes Payable

Section: Chapter Questions

Problem 7P: Wilbury Corporation issued 1 million of 13.5% bonds for 985,071.68. The bonds are dated and issued...

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Wilbury Corporation issued 1 million of 13.5% bonds for 985,071.68. The bonds are dated and issued October 1, 2019, are due September 30, 2020, and pay interest semiannually on March 31 and September 30. Assume an effective yield rate of 14%. Required: 1. Prepare a bond interest expense and discount amortization schedule using the straight-line method. 2. Prepare a bond interest expense and discount amortization schedule using the effective interest method. 3. Prepare adjusting entries for the end of the fiscal year December 31, 2019, using the: a. straight-line method of amortization b. effective interest method of amortization 4. If income before interest and income taxes of 30% in 2020 is 500,000, compute net income under each alternative. 5. Assume the company retired the bonds on June 30, 2020, at 98 plus accrued interest. Prepare the journal entries to record the bond retirement using the: a. straight line method of amortization b. effective interest method of amortization 6. Compute the companys times interest earned (pretax operating income divided by interest expense) for 2020 under each alternative.
Whirlie Inc. issued $300,000 face value, 10% paid annually, 10-year bonds for $319,251 when the market of interest was 9%. The company uses the effective-interest method of amortization. At the end of the year, the company will record ________. A. a credit to cash for $28,733 B. a debit to interest expense for $31,267 C. a debit to Discount on Bonds Payable for $1,267 D. a debit to Premium on Bonds Payable for $1.267
Preparing a Debt Disclosure As of December 31, 2020, Dole Company’s long-term debt consisted of the following: $146,050—Unsecured note payable to bank due 2021. $517,500—Unsecured note payable to bank due 2023. $690,000—Unsecured note payable to bank due 2025. $103,500—Secured mortgage payable to bank due in equal installments 2021 through 2025. $184,000—Secured note payable to bank due in 2026. Prepare the required financial statement disclosure at December 31, 2020, indicating the amounts due in each of the next five years and thereafter. NotePayable Year 12021 Year 22022 Year 32023 Year 42024 Year 52025 Thereafter $146,050 Answer Answer Answer Answer Answer Answer 517,500 Answer Answer Answer Answer Answer Answer 690,000 Answer Answer Answer Answer Answer Answer 103,500 Answer Answer Answer Answer Answer Answer 184,000 Answer Answer Answer Answer Answer Answer Answer Answer Answer Answer Answer Answer
Items 28 to 30 are based on the following information. The following data were obtained from the financial records of Orphan Black Company: 15%, 10-year, Bonds Payable, dated January 1, 2019 Debit Credit Cash proceeds from issue on January 1, 2019 of 1,000, P1,000 bonds. The market rate of interest on the date of issue was 12% Bond Interest Expense Cash paid, 1/2/20 Cash paid, 7/1/20 Accrual, 12/31/20 Accrued Interest on Bonds Balance, 1/1/20 Accrual, 12/31/20 Treasury Bonds Redemption price and interest to date on 200 bonds permanently retired on December 31, 2020 a. b. 75,000 75,000 75,000 a. 75,000 b. 135,000 265,000 C. d. 1,172,044 1,172,044 75,000 75,000 Balance 28. What is the carrying value of bonds payable at December 31, 2020? 831, 110 c. 1,151,583 921,266 800,000 d. 29. What is the accrued interest on bonds at December 31, 2020? 75,000 150,000 225,000 C. 69,745 d. 160,826 75,000 150,000 265,000 60,000 52,500 30. How much is the bond interest expense for the year ended…
At December 31, 2025, Cullumber Corporation has the following account balances: Bonds payable, due January 1, 2034 Discount on bonds payable Interest payable $1,400,000 76,000 71,000 Show how the above accounts should be presented on the December 31, 2025, balance sheet, including the proper classific CULLUMBER CORPORATION Balance Sheet (Partial) LA
10. Powell Corporation includes the following selected accounts in its general ledger at December 31, 2025: View the selected accounts. Prepare the liabilities section of Powell Corporation's balance sheet at December 31, 2025. Plus: Total Liabilities Powell Corporation Balance Sheet (Partial) December 31, 2025 Selected Accounts - ☑ Notes Payable (long-term) 55,000 Bonds Payable (long-term) 215,000 Interest Payable (due next year) Sales Tax Payable $ 780 640 Accounts Payable 20,000 Premium on Bonds Payable 5,950 Salaries Payable 1,840 Estimated Warranty Payable 1,000 Print Done
Completing a Debt Amortization Table (Straight Line) Cagney Company sold $200,000 of bonds on January 1, 2024. A portion of the amortization table follows. Period CashPayment(Credit) InterestExpense(Debit) Discounton BondsPayable(Credit) Discounton BondsPayable Balance Bond PayableCarrying Value At issue $8,000 $192,000 06/30/24 $12,000 $12,800 $800 7,200 192,800 12/31/24 12,000 12,800 800 6,400 193,600 06/30/25 ? ? ? ? ? Required: 1. Determine the stated interest rate on these bonds.fill in the blank 1 % 2. Calculate the interest expense and the discount amortization for the interest period ending on June 30, 2025. Interest expense $fill in the blank 2 Discount amortization $fill in the blank 3 3. Calculate the liability balance shown on a balance sheet after the interest payment is recorded on June 30, 2025.$fill in the blank 4
Deere & Company’s 2018 10-K reports the following footnote relating to long-term debt for its equipment operations subsidiary. Deere’s borrowings include $300 million, 7.125% notes, due in 2031
Lunar Corp. provided the following information on December 31, 2021: .P 550,000 Accounts payable... Notes payable, 8% unsecured, due on July 1, 2023. Accrued expenses.. 4,000,000 350,000 450,000 Contingent liabilities.. Deferred tax liabilities... Bonds payable, 7% due on December 31, 2022. Premium on bonds payable.... 250,000 5,000,000 500,000 The contingent liability is an accrual for possible loss on a P 1,000,000 lawsuit filed against Solar Corp. The legal counsel expects the suit to be settled in 2022 and has estimated that the entity will be liable for damages in the range of P 450,000 to P 750,000. The deferred tax liability is not related to an asset for financial reporting and is expected to reverse in 2022. What is the total amount of current liability that should be shown in Solar Corp.'s December 31, 2021 statement of financial position? -
Culver Corporation issued 2,800 9%, 7-year, $1,000 bonds dated January I, 2022, at face value. Interest is paid. each January I. what is the journal entry to record the sale of these bonds on January I, 2022. what is the adjusting journal entry on December 31, 2022, to record interest expense. what is the journal entry on January I, 2023, to record interest paid.
The Golden Company issues $518,000 of 12%, 10-year bonds at 103 on March 31, 2025. The bonds pay interest on March 31 and September 30. Assume that the company uses the s amortization. The journal entry to record the issuance includes a OA. debit to Premium on Bonds Payable for $15,540 OB. credit to Bonds Payable for $533,540 OC. debit to Cash for $518,000 D. debit to Cash for $533,540
In your initial examination of National Finance Company, you find the following ledger account balances: 12% Bonds Payable-Due 10 years from January 1, 2020 Debit Credit P 5,000,000 1/2/2020 Cash Receipts Journal Bonds Payable Redeemed Debit Credit 10/01/2022 Cash Disbursement Journal P 1,110,000 Bond Discount Credit Debit P 500,000 1/2/2020 Cash Receipts Journal Bond Interest Expense Credit Debit P 300,000 1/1/2022 Cash Disbursement Journal 7/1/2022 Cash Disbursement Journal 300,000 The bonds were redeemed for permanent cancellation on October 1, 2022 at 108 plus accrued interest. Compute the bond interest expense for the year 2022 Balance Balance Balance Balance