Cullumber Company issued $1,600,000, 12-year bonds. It agreed to make annual deposits of $82,000 to a fund (called a sinking fund), which will be used to pay off the principal amount of the bond at the end of 12 years. The deposits are made at the end of each year into an account paying 9% annual interest. Click here to view the factor table. (For calculation purposes, use 5 decimal places as displayed in the factor table provided.) What amount will be in the sinking fund at the end of 12 years? (Round answer to 2 decimal places, e.g. 25.25.) Amount in the sinking fund

Cullumber Company issued $1,600,000, 12-year bonds. It agreed to make annual deposits of $82,000 to a fund (called a sinking fund), which will be used to pay off the principal amount of the bond at the end of 12 years. The deposits are made at the end of each year into an account paying 9% annual interest. Click here to view the factor table. (For calculation purposes, use 5 decimal places as displayed in the factor table provided.) What amount will be in the sinking fund at the end of 12 years? (Round answer to 2 decimal places, e.g. 25.25.) Amount in the sinking fund

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter13: Long-term Liabilities

Section: Chapter Questions

Problem 4EB: Chung Inc. issued $50,000 of 3-year bonds on January 1, 2018, with a stated rate of 4% and a market...

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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?
Sandhill Co. issued $1,080,000, 9-year bonds. It agreed to make annual deposits of $86,000 to a fund (called a sinking fund), which will be used to pay off the principal amount of the bond at the end of 9 years. The deposits are made at the end of each year into an account paying 8% annual interest. Click here to view the factor table. (For calculation purposes, use 5 decimal places as displayed in the factor table provided.) What amount will be in the sinking fund at the end of 9 years? (Round answer to 2 decimal places, e.g. 25.75.) Amount in the sinking fund $
Blossom Company issued $1,340,000, 14-year bonds. It agreed to make annual deposits of $107,000 to a fund (called a sinking fund). which will be used to pay off the principal amount of the bond at the end of 14 years. The deposits are made at the end of each year into an account paying 6% annual interest. Click here to view the factor table. (For calculation purposes, use 5 decimal places as displayed in the factor table provided.) What amount will be in the sinking fund at the end of 14 years? (Round answer to 2 decimal places, e.g. 25.75.) Amount in the sinking fund $
Crane Company issued $1,140,000, 13-year bonds. It agreed to make annual deposits of $91,000 to a fund (called a sinking fund), which will be used to pay off the principal amount of the bond at the end of 13 years. The deposits are made at the end of each year into an account paying 7% annual interest. Click here to view the factor table. (For calculation purposes, use 5 decimal places as displayed in the factor table provided.) What amount will be in the sinking fund at the end of 13 years? (Round answer to 2 decimal places, e.g. 25.75.) Amount in the sinking fund $ Jason and Sarah Garfield invested $8,000 in a savings account paying 7% annual interest when their daughter, Angela, was born. They also deposited $1,300 on each of her birthdays until she was 14 (including her 14th birthday). Click here to view the factor table. (For calculation purposes, use 5 decimal places as displayed in the factor table provided.) How much was in the savings account on her 14th birthday (after the…
Oriole Company issued $1,000,000, 9-year bonds. It agreed to make annual deposits of $77,500 to a fund (called a sinking fund), which will be used to pay off the principal amount of the bond at the end of 9 years. The deposits are made at the end of each year into an account paying 9% annual interest. Click here to view the factor table. What amount will be in the sinking fund at the end of 9 years? (For calculation purposes, use 5 decimal places as displayed in the factor table provided. Round answer to 2 decimal places, eg. 25.25) Amount in the sinking fund $
Sepia Inc. issued bonds for $450,000 that were redeemable in 6 years. They established a sinking fund that was earning 4.87% compounded semi-annually to pay back the principal of the bonds on maturity. Deposits were being made to the fund at the end of every 6 months. a. Calculate the size of the periodic sinking fund deposit. b. Calculate the sinking fund balance at the end of the payment period 8. c. Calculate the interest earned in payment period 9. d. Calculate the amount by which the sinking fund increased in payment period 9.
Carla Vista Company issued $1,700,000, 13-year bonds. It agreed to make annual deposits of $79,500 to a fund (called a sinking fund). which will be used to pay off the principal amount of the bond at the end of 13 years. The deposits are made at the end of each year into an account paying 8% annual interest. Click here to view the factor table. What amount will be in the sinking fund at the end of 13 years? (For calculation purposes, use 5 decimal places as displayed in the factor table provided. Round answer to 2 decimal places, e.g. 25.25.) Amount in the sinking fund $
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Sepia Inc. issued bonds for $475,000 that were redeemable in 6 years. They established a sinking fund that was earning 5.37% compounded semi-annually to pay back the principal of the bonds on maturity. Deposits were being made to the fund at the end of every 6 months. a. Calculate the size of the periodic sinking fund deposit. Round your answer up to the next cent b. Calculate the sinking fund balance at the end of the payment period 6. Round to the nearest cent c. Calculate the interest earned in payment period 7. d. Calculate the amount by which the sinking fund increased in payment period 7. Round to the nearest cent
Sepia Inc. issued $350,000 bonds that were redeemable in 7 years. They established a sinking fund that was earning 5.50% compounded semi-annually to pay back the principal of the bonds on maturity. Deposits were being made into the fund at the end of every 6 months. a. Calculate the size of the periodic sinking fund deposits. b. Calculate the sinking fund balance at the end of the 4th payment period. c. Calculate the amount of interest earned during the 5th payment period. d. Calculate the amount by which the sinking fund increased in the 5th payment period.
Marigold Inc. issues $4,100,000 of 7% bonds due in 10 years with interest payable at year-end. The current market rate of interest for bonds of similar risk is 10%. Click here to view factor tables. What amount will Marigold receive when it issues the bonds? (For calculation purposes, use 5 decimal places as displayed in the factor table provided and final answer to O decimal places, e.g. 458,581.) Amount received by Marigold when bonds were issued $ 10822
Renfro Company issued $300,000 of 8%, 10-year bonds at 102. Interest is paid annually, and the straight-line method is used for amortization. Assume that the market rate for similar investments is 7%. The bonds are issued on the date of the bonds. a. What amount was received for the bonds? b. How much interest is paid each interest period? c. What is the premium amortization for the first interest period?