LaTanya Corporation is planning to issue $160,000, five-year, 6 percent bonds. Interest is payable semi-annually each June 30 and December 31. All of the bonds will be sold on July 1, year 1; they mature on June 30, year 6. Use Table 8C.1, Table 8C.2. Required: Compute the issue (sale) price on July 1, year 1, if the market interest rate is: (Round time value factor to 4 decimal places. Round the final answers to the nearest dollar amount.) . (a) 6 percent (b) 5 percent (c) 7 percent $ Issue price 160,000
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- On January 1, 2020, XYZ Co. issued 8-year bonds with a face value of $1,500,000 and a stated (nominal) interest rate of 6%, payable semiannually on June 30 and December 31. The bonds were sold to yield 4%. : Instructions (a) Calculate the selling price of the bonds payable. HINT: You will need to look up the appropriate discount values in the present value tables (b) Prepare the interest amortization table for 2020 only, assuming that amortization is recorded on interest payment dates.Tano Company issues bonds with a par value of $180,000 on January 1, 2021. The bonds' annual contract rate is 8%, and interest is paid semiannually on June 30 and December 31. The bonds mature in three years. The annual market rate at the date of issuance is 10%, and the bonds are sold for $170,864. Required: 1. What is the amount of the discount on these bonds at issuance? (Use cells A2 to M5 from the given information to complete this question.) Discount 2. How much total bond interest expense will be recognized over the life of these bonds? (Use cells A2 to M5 from the given information to complete this question. Negative amounts or amounts to be deducted should be input and displayed as negative values.) Total Bond Interest Expense Over Life of Bonds: Amount repaid: payments of Par value at maturity Total repaid Less amount borrowed Total bond interest expense 3. Prepare a straight-line amortization table for these bonds. Amount of semi-annual discount amortization (0) (1) (2) (3)…On January 1, 2024, Tableau Company issues $20 million of 9% bonds, due in six years, with interest payable semiannually on June 30 and December 31 each year. Use a financial calculator or Excel. Required: 1. If the market rate is 8%, will the bonds issue at face amount, a discount, or a premium? Calculate the issue price. 2. If the market rate is 9%, will the bonds issue at face amount, a discount, or a premium? Calculate the issue price. 3. If the market rate is 10%, will the bonds issue at face amount, a discount, or a premium? Calculate the issue price. Help Save & (Do not round intermediate calculations. Round final answer to the nearest dollar amount. Enter your answer in dollars, not in millions.) 1. The bonds issue at 2. The bonds issue at 3. The bonds issue at and the issue price is and the issue price is and the issue price is
- On January 1, 2020, Everly Bottle Company sold $4,000,000 in long-term bonds. The bonds will mature in 4 years and have a stated interest rate of 10% and a yield rate of 8%. The bonds pay interest July 1 and January 1 of each year. The bonds are to be accounted for under the effective-interest method. Instructions: 1. Calculate the bond proceeds using the attached present value tables, Excel, or a financial calculator. Upload Choose a FileHartford Research issues bonds dated January 1 that pay interest semiannually on June 30 and December 31. The bonds have a $40,000 par value and an annual contract rate of 10%, and they mature in 10 years. (Table B.1, Table B.2, Table B.3, and Table B.4) (Use appropriate factor(s) from the tables provided. Round all table values to 4 decimal places, and use the rounded table values in calculations.) Required: Consider each separate situation. 1. The market rate at the date of issuance is 8%. (a) Complete the below table to determine the bonds' issue price on January 1. (b) Prepare the journal entry to record their issuance. 2. The market rate at the date of issuance is 10%. (a) Complete the below table to determine the bonds' issue price on January 1. (b) Prepare the journal entry to record their issuance. 3. The market rate at the date of issuance is 12%. (a) Complete the below table to determine the bonds' issue price on January 1. (b) Prepare the journal entry to record their…Hartford Research issues bonds dated January 1 that pay interest semiannually on June 30 and December 31. The bonds have a $27,000 par value and an annual contract rate of 12%, and they mature in 10 years. (Table B.1, Table B.2, Table B.3, and Table B.4) (Use appropriate factor(s) from the tables provided. Round all table values to 4 decimal places, and use the rounded table values in calculations.) Required:Consider each separate situation. 1. The market rate at the date of issuance is 10%.(a) Complete the below table to determine the bonds' issue price on January 1.(b) Prepare the journal entry to record their issuance.2. The market rate at the date of issuance is 12%.(a) Complete the below table to determine the bonds' issue price on January 1.(b) Prepare the journal entry to record their issuance.3. The market rate at the date of issuance is 14%.(a) Complete the below table to determine the bonds' issue price on January 1.(b) Prepare the journal entry to record their issuance.
- Your company issues $3,500,000 bonds at 7% interest with annual interest payments. Bonds have a maturity date in 30 years. At the time of issue, the market rate is 5%. а. Calculate the issue price of the bond. b. Record the journal entry for the issue of the bond С. Record the journal entry for the first interest payment d. How much interest is recorded on the income statement in Year 1? е. Record the journal entry for the final entry at the bond maturity date.On January 1, 2021, Water Wonderland issues $20 million of 7% bonds, due in eight years, with interest payable semiannually on June 30 and December 31 each year. Use Table 2 and Table 4.1. If the market rate is 6%, will the bonds issue at face amount, a discount, or a premium? Calculate the issue price. (Round "PV Factor" to 5 decimal places. Round other intermediate calculations and final answer to the nearest dollar amount. Enter your answer in dollars, not in millions.) The bonds issue at and the issue price isWaldron 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 Done
- Assume that on January 1, 2021, Water World issues $200,000 of 9% bonds, due in 10 years, with interest payable semiannually on June 30 and December 31 each year.Required:1. If the market rate is 9%, the bonds will issue at $200,000. Record the bond issue on January 1, 2021, and the first two semiannual interest payments on June 30, 2021, and December 31, 2021.2. If the market rate is 10%, the bonds will issue at $187,538. Record the bond issue on January 1, 2021, and the first two semiannual interest payments on June 30, 2021, and December 31, 2021.3. If the market rate is 8%, the bonds will issue at $213,590. Record the bond issue on January 1, 2021, and the first two semiannual interest payments on June 30, 2021, and December 31, 2021.On January 1, 2024, Reyes Recreational Products issued $200,000, 12%, four-year bonds. Interest is paid semiannually on June 30 and December 31. The bonds were issued at $188,058 to yield an annual return of 14%. 1. Prepare an amortization schedule that determines interest at the effective interest rate. 2. Prepare an amortization schedule by the straight-line method. 3. Assuming the market rate is still 14%, what price would a second investor pay the first investor on June 30, 2026, for $28,000 of the bonds?On January 1, 2023, Kristopher Co. issued ten-year bonds with a face value of $7,000,000 and a stated interest rate of 5%, payable semiannually on June 30 and December 31. The bonds were sold to yield 4%. Required: a. Calculate the issue price of the bonds. b. Prepare journal entries for the issuance on January 1, 2023 and the June 30, 2023 interest payment date, assuming the company uses the effective interest method for amortizing any premium or discount. calculate in excel format calculate the issue price of bonds