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During a 12-month period, a company is permitted to issue new securities through crowdfunding up to a limit of:
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- Crane Ltd. offered to sell common shares on a subscription basis. Each subscription allowed for the purchase of 20 shares at a price of $52 per share. Terms of the subscription stated that subscribers were to pay 45% of the price as a down payment, with the remainder due in six months. On June 1, 2023, 180 subscriptions were sold. Six months later, on December 1, only 90 of the subscriptions were fully paid for. According to the subscription contract, the company would retain the down payment on any defaulted subscriptions. (a) Prepare the journal entries to record the above transactions. (List all debit entries before credit entries. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter o for the amounts.) Date Account Titles and Explanation Debit CreditWaldron Corporation issued $900,000 of 16%, 10-year bonds payable on January 1, 2022. The market interest rate at the date of issuance was 14%, and the bonds pay interest semiannually (on June 30 and December 31). Waldron Corporation's year-end is June 30. Read the requirements 1. Using the PV function in Excel, calculate the issue price of the bonds. (Round your answer to the nearest whole dollar) The issue price of the bonds is Requirements 1. Using the PV function in Excel, calculate the issue price of the bonds. 2. Prepare an effective-interest amortization table for the bonds through the first three interest payments, Round amounts to the nearest dollar. 3. Record Waldron Corporation's issuance of the bonds on January 1, 2022, and payment of the first semiannual interest amount and amortization of the bond premium on June 30, 2022 Explanations are not required Print DoneOn January 1, Renewable Energy issues bonds that have a $42,000 par value, mature in six years, and pay 18% interest semiannually on June 30 and December 31. 1. Prepare the journal entry for issuance assuming the bonds are issued at (a) 99 and (b) 1031. 2. How much interest does the company pay (in cash) to its bondholders every six months if the bonds are sold at par? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare the journal entry for issuance assuming the bonds are issued at (a) 99 and (b) 103½. View transaction list
- On January 1 of this year, Ikuta Company issued a bond with a face value of $115,000 and a coupon rate of 4 percent. The bond matures in 3 years and pays interest every December 31. When the bond was issued, the annual market rate of interest was 5 percent. Ikuta uses the effective-interest amortization method. (FV of $1, PV of $1, FVA of $1, and PVA of $1) Note: Use appropriate factor(s) from the tables provided. Required: 1. Complete a bond amortization schedule for all three years of the bond's life. 2. What amounts will be reported on the income statement and balance sheet at the end of Year 1 and Year 2? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Complete a bond amortization schedule for all three years of the bond's life. Note: Round your intermediate calculations and final answers to whole dollars. Date January 01, Year 1 December 31, Year 1 December 31, Year 2 December 31, Year 3 Cash Interest Interest Expense Amortization Book…Company X purchased trading securities in February. Company Y purchased available-for-sale securities in February as well, and it plans to sell them before December. Company Z purchased available-for-sale securities and is planning to hold onto them for at least two years. What is implied here? 1. Company X and Company Y will report their securities under current assets on the balance sheet, while Company Z will report their securities immediately below current assets in the investments section. 2. Company X will report their securities under current assets on the balance sheet, while Company Y and Company Z will report their securities immediately under current assets in the investments section. 3. Company X and Company Y will report their securities under current assets, while Company Z will report their securities under current liabilities. 4. Company X, Y, and Z will all report their securities under current assets on the balance sheet.help
- At the beginning of the year, COMET Company decided to raise additional capital by issuing 8,000 of ₱1,000 face amount 5-year bonds with interest rate of 12% payable semi-annually on June 30 and December 31. To help the sale of the bonds, share warrants are issued – one warrant for each ₱1,000 bond sold. The warrant entitles the holder to purchase five shares at ₱85 per share. The par value of the share is ₱50. It is reliably determined that the value of the warrants is ₱25 each at the time of the issuance of the bonds. The bonds are sold at 110 with warrants. The market rate of interest for similar bonds without the warrants is 14%. On December 1, 2021, half of the warrants are exercised and the rest expired. Prepare journal entries for 2021.please answer within the format by providing formula the detailed workingPlease provide answer in text (Without image)Please provide answer in text (Without image)Please provide answer in text (Without image) Lemond Corporation is planning to issue bonds with a face value of $200,000 and a coupon rate of 10 percent. The bonds mature in three years and pay interest semiannually every June 30 and December 31. All of the bonds were sold on January 1 of this year. Lemond uses the effective-interest amortization method and does not use a premium account. Assume an annual market rate of interest of 8.5 percent. Required: 1. Provide the journal entry to record the issuance of the bonds.2. Provide the journal entry to record the interest payment on June 30 and December 31 of this year. 3. What bonds payable amount will Lemond report on this year’s December 31 balance sheet?Pinder Co. produces and sells high-quality video equipment. To finance its operations, Pinder issued $30,000,000 of four-year, 9% bonds, with interest payable semiannually, at a market (effective) interest rate of 10%. This information has been collected in the Microsoft Excel Online file. Open the spreadsheet, perform the required analysis, and input your answers in the question below. Determine the present value of the bonds payable. Round your answer to the nearest dollar.
- On January 1 of this year, Houston Company issued a bond with a face value of $16,000 and a coupon rate of 5 percent. The bond matures in 3 years and pays interest every December 31. When the bond was issued, the annual market rate of interest was 4 percent. Houston uses the effective-interest amortization method. (FV of $1, PV of $1, FVA of $1, and PVA of $1) (Use the appropriate factor(s) from the tables provided. Round your final answers to whole dollars.) Required: 1. Complete a bond amortization schedule for all three years of the bond's life. (Enter all values as positive values.) Cash Interest Book Value of Date Amortization Interest Expense Bond Jan. 01, Year 1 Dec. 31, Year 1 Dec. 31, Year 2 Dec. 31, Year 3 2. What amounts will be reported on the income statement and balance sheet at the end of Year 1 and Year 2? December 31 Year 1 Year 2 Interest expense Bond liabilityAt the beginning of the year, UNIVERSE Company decided to raise additional capital by issuing 8,000 of₱1,000 face amount 5-year bonds with interest rate of 12% payable semi-annually on June 30 andDecember 31. To help the sale of the bonds, share warrants are issued – one warrant for each ₱1,000bond sold. The warrant entitles the holder to purchase five shares at ₱85 per share. The par value ofthe share is ₱50. It is reliably determined that the value of the warrants is ₱25 each at the time of theissuance of the bonds. The bonds are sold at 110 with warrants. The market rate of interest for similarbonds without the warrants is 14%. On December 1, 2021, half of the warrants are exercised and therest expired. The following present value factors are made available: Prepare all entries for 2021.Compute or provide the answers for the following:26. What is the issue price of the bonds without warrants?27. What is the equity component upon initial recognition?28. How much is the premium or…