Nero Solutions Co. issued an $800,000, 6%, three-year bond for $806,000. The bond pays interest annually, at each year-end. At maturity, the bond can be repaid in cash or converted to 60,000 common shares at the investor’s option. The market interest rate for bonds of similar term and risk, but that are not convertible, is in the range of 7%.   Calculate the portion of the bond to be recorded as a liability. Provide the entry to record issuance of the bond. Provide the entries to record interest expense and the annual cash payment each year over the bond’s three-year life. Provide the entry to record the maturity of the bond, assuming that shares were issued. Provide the entry to record the maturity of the bond, assuming that cash is paid

ABC Corporation plans to issue a 9%, 10-year, P5,000,000 face value bonds. It will incur P500,000 as underwriting fee. What is the cost of the bond based on the following methods? 1. Yield to maturity formula 2.Trial and error method (closest percent, 3 decimal places)

The Sisyphean Company has a bond outstanding with a face value of $1,000 that reaches maturity in 8 years. The bond certificate indicates that the stated coupon rate for this bond is 8% and that the coupon payments are to be made semiannually. Assuming the appropriate YTM on the Sisyphean bond is 11.8%, then the price that this bond trades for will be closest to: OA. $968 OB. $1,129 OC. $807 D. $645

The Sisyphean Company has a bond outstanding with a face value of $1,000 that reaches maturity in 5 years. The bond certificate indicates that the stated coupon rate for this bond is 10% and that the coupon payments are to be made semiannually. Assuming that this bond trades for $1,007.76, then the YTM for this bond is closest to O A. 7.9% B. 9.9% OC. 11.8% OD. 13.8% ... 4

NoleCo issues bonds on January 1, 20X1. The bonds mature ten years from this date and pay interest semi-annually on June 30 and December 31 each year. The face value of the bonds is $500,000 and the coupon/stated rate is 6%. The market rate on the issue date is 5%. The bonds were issued for $538,973 The carrying value of these bonds on December 31, 20X1 (after the interest payment on that date) is: $533,248 $536,591 $541,265 $500,000 $535,883

Beluga Inc. issued 10-year bonds with a face value of $100,000 and a stated rate of 3% when the market rate was 4%. Interest was paid annually. The bonds were sold at 87.5. What was the sales price of the bonds? Were they issued at a discount, a premium, or at par?

warded Denzel Corporation is planning to issue bonds with a face value of $630,000 and a coupon rate of 7.5 percent. The bonds mature in 4 years and pay interest semiannually every June 30 and December 31. All of the bonds were sold on January 1 of this year. Denzel uses the effective-interest amortization method and also uses a discount account. Assume an annual market rate of interest of 8.5 percent. (FV of $1, PV of $1, FVA of $1, and PVA of $1) Note: Use appropriate factor(s) from the tables provided. Required: 1. and 2. Prepare the journal entries to record the issuance of the bonds and interest payment on June 30 of this year. 3. What bonds payable amount will Denzel report on its June 30 balance sheet?

Monty Corp. invested in a three-year, $100 face value 9% bond, paying $95.11. At this price, the bond will yield a 11% return. Interest is payable annually.     Prepare a bond discount amortization table for Monty Corp., assuming Monty uses the effective interest method required by IFRS. (Round answers to 2 decimal places, e.g. 52.75.) Bond Discount Amortization Table Date   Cash Received   Interest Income   Bond Discount Amortization   Amortized Cost of Bond Day 1               $enter a dollar amount  End Year 1   $enter a dollar amount    $enter a dollar amount    $enter a dollar amount    enter a dollar amount End Year 2   enter a dollar amount   enter a dollar amount   enter a dollar amount   enter a dollar amount End Year 3   enter a dollar amount   enter a dollar amount   enter a dollar amount   enter a dollar amount     $enter a total amount    $enter a total amount    $enter a total amount      Prepare journal entries to record the initial…

Park Corporation is planning to issue bonds with a face value of $2,800,000 and a coupon rate of 7 percent. The bonds mature in 10 years and pay interest semiannually every June 30 and December 31. All of the bonds were sold on January 1 of this year. Park uses the effective - interest amortization method and also uses a premium account. Assume an annual market rate of interest of 6.0 percent. (FV of $1, PV of S1, FVA of $1, and PVA of $1) Note: Use appropriate factor(s) from the tables provided. Required: 1. and 2. Prepare the journal entry to record the issuance of the bonds and the interest payment on June 30 of this year 3. What bonds payable amount will Park report on its June 30 balance sheet?

Metlock Inc. issues $4,200,000 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 12%. What amount will Metlock receive when it issues the bonds?