Cullumber Company issued $468,000 of 10%, 7-year bonds on January 1, 2021. The bonds pay interest annually. Click here to view the factor table. Present Value of 1 Click here to view the factor table. Present Value of an Annuity of 1 (a) Assuming the market interest rate on January 1, 2021, was 9%, calculate the bond's issue price. (For calculation purposes, use 5 decimal places as displayed in the factor table provided. Round answer to 0 decimal places, eg. 1,575) Bond issue price

Cullumber Company issued $468,000 of 10%, 7-year bonds on January 1, 2021. The bonds pay interest annually. Click here to view the factor table. Present Value of 1 Click here to view the factor table. Present Value of an Annuity of 1 (a) Assuming the market interest rate on January 1, 2021, was 9%, calculate the bond's issue price. (For calculation purposes, use 5 decimal places as displayed in the factor table provided. Round answer to 0 decimal places, eg. 1,575) Bond issue price

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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On January 1, 2021, Baltimore Company issued $400,000 face value, 5%, 5-year bonds at 103. Baltimore uses the straight-line method for amortization. Use this information to determine the dollar value of the annual bond premium amortization. Round your answer to the nearest whole number (no cents).
The following section is taken from Crane's balance sheet at December 31, 2024. Current liabilities Interest payable Long-term liabilities Bonds payable (9%, due January 1, 2028) (a) (b) $41,000 Interest is payable annually on January 1. The bonds are callable on any annual interest date. (c) 510,000 Journalize the payment of the bond interest on January 1, 2025. Assume that on January 1, 2025, after paying interest, Crane calls bonds having a face value of $105,000. The call price is 105. Record the redemption of the bonds. Prepare the adjusting entry on December 31, 2025, to accrue the interest on the remaining bonds.
On December 31, 2024, when the market interest rate is 8%, McMann Realty issues $700,000 of 5.25%, 10-year bonds payable. The bonds pay interest semiannually. Determine the present value of the bonds at issuance. (Round all currency amounts to the nearest whole dollar) (Click the icon to view Present Value of $1 table.) (Click the icon to view Future Value of $1 table.) The present value of the bonds at issuance amounts to (Click the icon to view Present Value of Ordinary Annuity of $1 table.) (Click the icon to view Future Value of Ordinary Annuity of $1 table.) EXE
Shaq Corporation issued $10,000 of 20-year bonds on January 1, 2024. The bonds pay interest semiannually. This is a partial bond amortization schedule for the bonds. Payment Cash Effectiveinterest Increase in balance Outstandingbalance 9,080 1 400 409 9 9,089 2 400 409 9 9,098 3 400 409 9 9,107 4 400 410 10 9,117 What is the effective annual rate of interest on the bonds?
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Discount-Mart issues $17 million in bonds on January 1, 2021. The bonds have a ten-year term and pay interest semiannually on June 30 and December 31 each year. Below is a partial bond amortization schedule for the bonds: Date Cash Paid InterestExpense Increase inCarrying Value CarryingValue 01/01/2021 $15, 050,113 $ 15,050,113 06/30/2021 $850,000 903,007 53, 007 $15, 103,120 12/31/2021 850,000 906,187 56, 187 15,159,307 06/30/2022 850,000 909,558 59, 558 15,218,865 12/31/2022 850,000 913,132 63, 132 15,281,997 What is the market annual rate of interest on the bonds? (Hint: Be sure to provide the annual rate rather than the six-month rate.)
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