A company issued $1,000,000 of 8% bonds on January 1, with interest payable semi-annually. The bonds mature in 5 years. The market rate of interest for similar bonds was 9% at the time of issuance. The present value (issue price) of the bonds is approximately. ## Please Don't use chatgpt or

A company issued $1,000,000 of 8% bonds on January 1, with interest payable semi-annually. The bonds mature in 5 years. The market rate of interest for similar bonds was 9% at the time of issuance. The present value (issue price) of the bonds is approximately. ## Please Don't use chatgpt or

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Music Test >> gageNOW X . d21 mnsu - Bin X File Home Inser https://v2.cen.. Paste Font The Kaplan Group sold $200,000 of 10-year bonds for $190,000. lipboard The face rate on the bonds was Navigation 8% and interest is paid annually on December 31. What entry rock op would be made on December 31 when the interest is paid? 1 result (Numbers are omitted.) Headings Pages Oa. Interest Expense Bonds Payable Cash First of Rock Operas Ob. Interest Expense important double alb Cash Oc. Interest Expense Discount on Bonds Payable Cash Od. Interest Expense Discount on Bonds Payable Cash (田

Part 2: Solve the following problems in the space provided or an attached extra page. You may use a calculator or computer, but no cell phones. On May 1, 20xl Ben Corp. issue $110,000 of 8-year term bonds which were dated May 1, 20xl. The bonds pay interest semi-annually. The stated interest rate was 7% annually, and the bonds were issued to yield 6% annually. Required: 1.) Show that the semi-annual payment is $3,850. 2.) Show that the issue price of the bonds is $116,890. Use the present value tables distributed in class. 3.) Using the $116,890 value prepare an amortization schedule for the bonds through November 1, 20x3. 4.) Prepare journal entries for the bonds for May 1, 20xl, November 1, 20xl, December 31, 20xl, and Маy 1, 20х2. 5.) Prepare entries to retire the bonds on July 1, 20x3 at 103 plus accrued interest.
tELLiy, you must enter your ID number on the first sheet! On January 1, 2020 Omsk Corporation issued Bonds pay interest each July 1 and January 1. 150,000 of 5 % bonds, due in 17 years 12 % market rate of interest. Assume Requirements (Round to 0 decimals, Rounding errors do not matter): 1. Compute market price of bonds. Provide detailed computation. Use functions in Excel 2. What is an amount of discount /premium? Indicate, what it is (discount or premium). Computation. 3. Prepare amortization schedule for first 5 years. Use formulas in Excel. 4. Prepare journal entry to record bond issue. 5. Prepare journal entry on July 1, 2020. 6. Prepare journal entry on December 31, 2020. 7. Prepare journal entry on January 1, 2021
Use the following to answer questions 4-7 (Round answers to the nearest dollar) The company issues 7.4%, 5-year bonds with a total face amount of $100,000. The market interest rate for bonds of similar risk and maturity is 7.6%. Interest is paid semi-annually. DO NOT ROUND YOUR ANSWERS UNTIL YOU FULLY COMPLETE THE PROBLEM SET (input your answers after you've completed the entire problem). 5. 7. will S expense? S payment? (rounded to nearest dollar). What is the issue price of the bond? (rounded to nearest dollar). When the company records the first interest payment, how much record company for interest. the (rounded to nearest dollar). What is the bond liability (carrying amount) after the first interest (rounded to nearest dollar). When the company records the second interest payment, how much will the company record for interest expense?
now.com/ilrn/takeAssignment/takeAssignmentMain.do?invoker=&takeAssignmentSession Locator=&inprogress=false < 3. eBook If an amount box does not require an entry, leave it blank. 1. 2. Show Me How On the first day of its fiscal year, Chin Company issued $26,800,000 of five-year, 11% bonds to finance its operations of producing and selling home improvement products. Interest is payable semiannually. The bonds were issued at a market (effective) interest rate of 13%, resulting in Chin receiving cash of $24,873,499. a. Journalize the entries to record the following: 1. Issuance of the bonds. 2. First semiannual interest payment. The bond discount is combined with the semiannual interest payment. (Round your answer to the nearest dollar.) 3. Second semiannual interest payment. The bond discount is combined with the semiannual interest payment. (Round your answer to the nearest dollar.) Check My Work A 000 000 000 000 000 000 b. Determine the amount of the bond interest expense for the first…
The balance sheet for Pharoah Consulting reports the following information on July 1, 2022. Long-term liabilities Bonds payable Less: Discount on bonds payable $2,000,000 160,000 Pharoah decides to redeem these bonds at 105 after paying annual interest. Prepare the journal entry to record the redemption on July 1, 2022. (Credit acco entered. Do not indent manually.) Date Account Titles and Explanation July 1 H $1,840,000 titles are automatically indented when au Debit Credit
* (2) WhatsApp web.whatsapp.com Connect - Notificati. https://blackboard.. Google hilj 9 YouTube D Gmail Ali Alhais today at 4:09 PM D.ASSCT accoumt. 13-A company has bonds outstanding with a par value of $100,000. The unamortized discount on these bonds is $4,500. The company retired these bonds by buying them on the open market at 97. What is the gain or loss on this retirement? A. $0 gain or loss. B. $1,500 gain. C. $1,500 loss. D. $3,000 gain. Туре a reply... 640 PM O a 40 ENG 1/10/2021 Type here to search prt sc home delete end 144 %23 & num + backspace 8 lock 11 3 4. V 7v 8A W R home 4. 1. 4 enter G H.
Hey, can I please be helped with the following task and please show calculations on how you got the answers On April 1, 2018 client federline corp. Issued 20-year, 6% bonds with a face value of $8,000,000 at 96 as the market rate at the time was 7%. Interest is to be paid semi-annually. -make the journal entries for: April 1, 2018(the bond issue date) september 30, 2018(first interest payment date assume the straight line Amortization method has been used) September 30, 2018( assume the effective interest method has been used) dec 31, 2018 (the adjusting entry assuming the straight-line method has been used) dec 31, 2018 (the closing entry assuming straight line has been used) Assume the details expect that the bond was issued at 105 to yield an effective interest rate of 5%. Cowell company issued a $6000,000, 10%, 20-year bond at 94 on january 1, 2005. On January 1, 2018 Cowell recalled the entire bond issue at 103. -Make the journal entry for jan 1, 2018 assuming the straight-line…
< eBook Show Me How amprogress=false (a) Journalize the entry to record the issuance of the bonds. If an amount box does not require an entry, leave it blank. 88 Issuing Bonds at Face Amount year), receiving cash of $900,000. On January 1, the first day of the fiscal year, Designer Fabric Inc. issues a $900,000, 7%, 10-year bond that pays semiannual interest of $31,500 ($900,000 × 7% × ½ (b) Journalize the entry to record the first interest payment on June 30. If an amount box does not require an entry, leave it blank. Check My Work (c) Journalize the entry to record the payment of the principal on the maturity date. If an amount box does not require an entry, leave it blank. ✩✩ O Save and Exit Upd. Next
Music Te >> ageNOW X b d2l mnsu - Bin X +E File Home Ins https://v2.ceng... to Paste Font A corporation issued $150,000 of 10-year bonds at the stated rate of lipboard 8%, with interest payable Navigation semiannually. How much cash will the bond investors receive at the end of the first interest period? rock op Oa. $3,000 1 result Ob. $24,000 Headings Page Oc. $6,000 Od. $12,000 First of Rock Oper important double
Some of the questions are in the screenshots to make it easier! The following section is taken from Ohlman Corp.’s balance sheet at December 31, 2018. Current liabilities Interest payable $ 112,000 Long-term liabilities Bonds payable, 7%, due January 1, 2021 1,600,000 Bond interest is payable annually on January 1. The bonds are callable on any interest date.(a)Journalize the payment of the bond interest on January 1, 2019. (Credit account titles are automatically indented when amount is entered. Do not indent manually.
Blossom Company issued $510,000 of 5-year, 9% bonds at 96 on January 1, 2022. The bonds pay interest annually. (a1) Your answer is correct. Prepare the journal entry to record the issuance of the bonds. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Account Titles and Explanation Cash (a2) Discount on Bonds Payable Bonds Payable * Your answer is incorrect. Compute the total cost of borrowing for these bonds. Total cost of borrowing 177310 Debit 489600 20400 Credit 510000

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