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

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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
On January 1, 2020, XYZ Co. issued a bond with a $400,000 par (face) value. The bond is a 5-year bond and will mature on December 31, 2025. The bond has a contract rate of interest of 5% and interest is paid semi-annually on June 30 and December 31 of each year. On January 1, 2020, the market rate of interest for bonds was 6%. The issue price of the bond was $382,942. The journal entry to record issuance of the bond would be: Debit Credit Cash $382,942 Discount on B/P 17,058 Bonds Payable $400,000 prepare the journal entry to record the first interest payment on XYZ Co.'s bond on June 30, 2020 using the straight-line method. (Show your work in each step using the recommended approach.)
On October 1, 2020, Ross Wind Energy Inc. issued a $1,610,000, 7.0%, seven-year bond. Interest is to be paid annually each October 1. Assume a November 30 year-end. (Use TABLE 14A.1 and TABLE 14A.2.). (Use appropriate factor(s) from the tables provided.) Required: a. Calculate the issue price of the bond assuming a market interest rate of 6% on the date of the bond issue. (Do not round intermediate calculations. Round the final answer to the nearest whole dollar.) Issue price of the bond b. Using the effective interest method, prepare an amortization schedule. (Do not round intermediate calculations. Round the final answers to the nearest whole dollar. Enter all the amounts as positive values.) Dorind Cash Period Dromium Unamortized Carring
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On June 1, 2023, JetCom Inventors Inc. issued a $540,000, 12%, three-year bond. Interest is to be paid semiannually beginning December 1, 2023.Required:a. Calculate the issue price of the bond assuming a market interest rate of 13%. (Do not round intermediate calculations. Round the final answer to the nearest whole dollar.) - 32400 b. Using the effective interest method, prepare an amortization schedule. (Do not round intermediate calculations. Round the final answers to the nearest whole dollar. Enter all the amounts as positive values.) - ? Part 1Prepare journal entries to the following. (Do not round intermediate calculations. Round the final answers to the nearest whole dollar.)a. Issuance of the bonds on June 1, 2023b. Payment of interest on December 1, 2023c. Adjusting entry to accrue bond interest and discount amortization on January 31, 2024d. Payment of interest on June 1, 2024Assume JetCom Inventors Inc. has a January 31 year-end. Part 2Show how the bonds will appear on the…
On October 31, 2021, Flowing Wind Company issued a $3,500,000, 10-year bond at 7% when the market rate was 8%. It was sold at 93, and they will account for interest on the bond using the effective interest rate calculation method. Interest payments are made on April 30, and October 31 of each year. Party Décor Company's year-end is December 31. Required: 1) Prepare the appropriate journal entries related to this bond for 2021, including all calculation 2) Show the bonds payable net value reported on the balance sheet as of December 31, 2021 3) Prepare the journal entry related to the first interest payment in 2022, including all calculations. 4) Assume the bond is redeemed at 94 on May 1, 2022. Record the redemption of the bond with the calculations included
A 15000 Manulife Financial Corporation bond bearing interest at 5.66% payable semi-annually is redeemable at par on March 12,2028. The bond is sold on the primary market on January 5,2021, to yield 6.42% compounded semi-annually. a) Calculate the purchased price.(use Bond key) b) The accrued interest
please fill the pictures out Quatro Company Issues bonds dated January 1, 2021, with a par value of $790.000. The bonds' annual contract rate Is 9%, and Interest Is pald semiannually on June 30 and December 31. The bonds mature In three years. The annual market rate at the date of Issuance Is 8%, and the bonds are sold for $810.694. 2 How much total bond Interest expense will be recognized over the Iife of these bonds? 3. Prepare a straight-line amortization table for these bonds.
On January 1, 2024, ABC Corp. issued 54 million of 10 year bonds at an 8%stated interest rate to be paid annually. ABC Corp. issued the bonds for S3, 501, 514 since the market rate of interest was 10% . What is the carryingvalue of the bond that ABC Corp. would report on its December 31, 2024balance sheet? (round to the nearest dollar) S3,531,665S3, 500,000S3,526,438S3,564,832S4,000,000
On March 1, 2023, Quinto Mining Inc. issued a $600,000, 8%, three-year bond. Interest is payable semiannually beginning September 1, 2023. Please do this fasttt

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