On June 1, 2023, JetCom Inventors Inc. issued a $560,000 8%, three-year bond. Interest is to be paid semiannually beginningDecember 1, 2023.Required:a. Calculate the issue price of the bond assuming a market interest rate of 9%. (Do not round intermediate calculations. Round thefinal answer to the nearest whole dollar.)Issue price of the bond

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Answered: On June 1, 2023, JetCom Inventors Inc.…

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, 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
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On July 1, 2019, an investor company owns 20% of the common stock of an Investee and can exercise significant influence over the investee. On July 1, 2019, immedlately preceding the sale of 10% of the investee to an unaffiliated party, the balance of the Equity Investment account was $50,000. The Investor company sold the 106 Interest in the Investee for $30,000. The Investor company determined that after the sale of 10% it could no longer exert significant influence and that the remalning 106 investment has a readily determinable fair value. Immediately after the sale of the 10% interest, what is the carrying amount (I.e., balance) of the Equlty Investment and what method of accounting must the Investor use for the Equity Investment? Select one: a, Balance - $25,000 Method - Equity b. Balance $25,000 Method - Fair value C. Balance $30,000 Method - Fair value d. Balance- $ 30,000 Method Cost-based
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On January 1, 2020, Blindo Corp. issued ten - year, 12% bonds with a face value of $ 500,000, with interest payable semi-annually on June 30 and December 31. At the time, the market rate was 10%. Required: a) Find PMT and Use your calculator to calculate the issue price of the bonds. Round the answer to the nearest dollar. b) Independent of your solution to part a), assume that the issue price was $ 562, 000. Prepare the amortization table for 2020. Round values to the nearest dollar.
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