On May 1, 2017, Skysong Ltd. issued a series of bonds in order to raise money for some upcoming projects. The bonds had a face value of $5,758,000 and matured in 10 years. Interest was payable at a face rate of 5% each April 30 and October 31. The bonds were issued to yield 5.5%. Calculate PV of issue price AND prepare a bond discount amortization table.
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- On January 1, 2018, Wawatosa Inc. issued 5-year bonds with a face value of $200,000 and a stated interest rate of 12% payable semi-annually on July 1 and January 1. The bonds were sold to yield 10%. Assuming the bonds were sold at 107.732, what is the selling price of the bonds? Were they issued at a discount or a premium?North Co. Issued bonds on July 1, 2018 worth $100,000 with a coupon rate of 10% and an effective interest rate of 8%. Interest is paid annually, every July 1, and bonds mature after 5 years. Required: PV of Bonds: Calculation PV of Principal and PV of Interest and give your explanation about your calculation! Make issuance journal and please explain about the journal! Amortization: Calculation Bond Amortization Table and explain the result! Make Interest adjustment, amortization journal, and explain about the journal! Make Interest payment journal, amortization, and explain about the journal! Journalize Redemption at maturity and explain about the journal!BlueLtd. Issued a $1,164,000, 10-year bond dated January 1, 2020. The bond was sold to yield 12% effective interest. The bond paid 10% interest on January 1 and July 1 each year. The company's year-end was December 31, and Blue followed IFRS. Using 1 factor Tables 2. a financial calculator, or 3. Excel function PV, calculate the amount received for the bond, and any discount or premium on the bond. Click here to view the tactor table PRESENT VALUE OF 1. Click here to view the factor table PRESENT VALUE OF AN ANNUITYOF 1 (For calculation purposes, use 5 decimal places as displayed in the factor table provided and final answers to 0 decimal places, e.g. 5,275.) Proceeds from sale of bond : on bond Prepare the journal entries for above transactions. (Round answers to 0 decimal places, e.g. 5,275. Credit account titles are automatically indented when the amount is entered. Do not Indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the…
- On January 1, 2017, Ellison Co. issued eight-year bonds with a fase value of S6,000,000 and a stated interest rate of6%, payable semlannually on June 30 and December 31. The bonds were sold to yield 8%. Table values are: Present value of 1 for 8 periods at 6% Present value of 1 for 8 periods at 8% Use the following to answer question 12: .627 .540 Present value of 1 for 16 periods at 3% Present value of 1 for 16 periods at 4% Present value of annuity for 8 periods at 6% Present value of annuity for 8 periods at 8% Present value of annuity for 16 periods at 3% Present value of annuity for 16 periods at 4% .623 .534 6.210 5.747 12.561 11.652 honds issued 12. The present value of the interest is A) $2,068,920. B) $2,097,360. C) $2,235,600. D) $2,260,980.On January 1, 2016, Rahman Co. issued five-year bonds with a face value of $ 100,000 and a stated interest rate of 10%, payable semiannually on June 30 and December 31. Assume that the bonds were sold to yield 8%. Required: 1. Compute the amount of cash Rahman Co. received on 1/1/2016. Prepare an amortization table for 2016 through 2020 for the bonds. Assume amortization is recorded on interest payment dates. Give all journal entries Rahman Co. entered for the years 2016 through 2020. 2. 3. 4. Show how the bonds were shown on the financial statements of Rahman Co. on 12/31/2016 and 12/31/2017. Do not forget to show income statement effects. What will be the maturity value of the bonds on 1/1/2021? 5.On January 1, 2018, Wawatosa Inc. issued 10-year bonds with a face value of $200,000 and a stated interest rate of 12% payable semi-annually on July 1 and January 1. The bonds were sold to yield 10%. A. Assuming the bonds were sold at 108.732, what is the selling price of the bonds? $___________ B. Were they issued at a discount or a premium? __________
- the Tace amount of PI,500,000. T hey mature on January 1, 2017. The bonds were issued for P1,329,000 to yield 12 percent, resulting in bond discount of P171,000. FFF uses the effective-interest method of amortizing bond discount. Interest is payable July 1 and January 1. For the six months ended June 30, 2007, FFF should report bond interest expense of Nos. 6-8 pertains to the following: On February 28, 2017, GGG Industries issued 10% bonds, dated January 1, with a face amount of P48 million. The bonds were priced at P42 million (plus accrued interest) to yield 12%. Interest is paid semiannually on June 30 and December 31. Required: What would be the amount(s) related to the bonds GGG would report in its statement of financial position at October 31, 2017? What would be the amount(s) related to the bonds that GGG would report in its income statement for the year ended October 31, 2017? What would be the amount(s) related to the bonds that GGG would report in its statement of cash flows…Amortization of Premium or Discount Bonds payable are dated January 1, 2017, and are issued on that date. The face value of the bonds is $175,000, and the face rate of interest is 12%. The bonds pay interest semiannually. The bonds will mature in five years. The market rate of interest at the time of issuance was 10%. Use the appropriate present value table: PV of $1 and PV of Annuity of $1 Required: Note: When computing the issue price of the bonds, round your answer to the nearest dollar. Then use the rounded amount in subsequent computations. 1. Using the effective interest amortization method, what amount should be amortized for the first six-month period? What amount of interest expense should be reported for the first six-month period? Round your answers to the nearest cent. Amount amortized Amount of interest expense $ 806 X Amount amortized Amount of interest expense $ 5,371.7 X 2. Using the effective interest amortization method, what amount should be amortized for the period…Wildhorse Ltd. issued a $1,159,000, 10-year bond dated January 1, 2023. The bond was sold to yield 12% effective interest. The bond paid 10% interest on January 1 and July 1 each year. The company's year-end was December 31, and Wildhorse followed IFRS. Using 1. factor Tables 2. a financial calculator, or 3. Excel function PV, calculate the amount received for the bond, and any discount or premium on the bond. Click here to view the factor table PRESENT VALUE OF 1. Click here to view the factor table PRESENT VALUE OF AN ORDINARY ANNUITY OF 1. (Round present value factor calculations to 5 decimal places, e.g. 1.25124 and final answers to O decimal places e.g. 58,971.) Proceeds from sale of bond on bond Date $ $ Prepare the journal entries for above transactions. (Round answers to O decimal places, e.g. 5,275. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O…
- On January 1, 2017, Vaughn Manufacturing issued eight-year bonds with a face value of $5950000 and a stated interest rate of 10%, payable semiannually on June 30 and December 31. The bonds were sold to yield 12%. Table values are: The present value of 1 for 8 periods at 10% 0.467 The present value of 1 for 8 periods at 12% 0.404 The present value of 1 for 16 periods at 5% 0.458 The present value of 1 for 16 periods at 6% 0.394 The present value of an annuity for 8 periods at 10% 5.335 The present value of an annuity for 8 periods at 12% 4.968 The present value of an annuity for 16 periods at 5% 10.838 The present value of an annuity for 16 periods at 6% 10.106 The present value of the interest is $3006535. $3174325. $3224305. $2955960.Metlock Ltd. issued a $791,000, 10-year bond dated January 1, 2023. The bond was sold to yield 12% effective interest. The bond paid 10% interest on January 1 and July 1 each year. The company's year-end was December 31, and Metlock followed IFRS. Using 1. factor Tables 2. a financial calculator, or 3. Excel function PV, calculate the amount received for the bond, and any discount or premium on the bond. Click here to view the factor table PRESENT VALUE OF 1. Click here to view the factor table PRESENT VALUE OF AN ORDINARY ANNUITY OF 1. (Round present value factor calculations to 5 decimal places, e.g. 1.25124 and final answers to 0 decimal places e.g. 58,971.) Proceeds from sale of bond Discount on bond Prepare the journal entries for above transactions. (Round answers to 0 decimal places, e.g. 5,275. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the…On January 1, 2016, Truffle Corp. issued 9% bonds in the face amount of P 5,000,000, which maature on Janaury 1, 2016. The bonds were issued for P 4,695,000 to yield 10%. Interest is payable annually on Dec. 31. The entity used the interest method of amortizing bond discount. What is the amortization discount for 2016?