FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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- Present Value of Bonds Payable; Premium Moss Co. issued $540,000 of four-year, 12% bonds, with interest payable semiannually, at a market (effective) interest rate of 10%. Determine the present value of the bonds payable, using the present value tables in Exhibit 5 and Exhibit 7. Round to the nearest dollar.arrow_forwardDo not give answer in imagearrow_forwardPresent value of bonds payable; discount Pinder Co. produces and sells high-quality video equipment. To finance its operations, Pinder issued $25,000,000 of 5-year, 7% bonds, with interest payable semiannually, at a market (effective) interest rate of 9%. Determine the present value of the bonds payable, using the present value tables in Exhibit 5 and Exhibit 7. Round to the nearest dollar. Xarrow_forward
- Determining Selling Prices of Bonds Under Different Interest Assumptions Olay Inc. issues $50,000, 8%, 10-year bonds payable on January 1. Calculate the selling price of the bonds under the following separate assumptions. Round your answer to the nearest whole number. Do not use negative signs with your answers. a. The bonds pay cash interest annually ($4,000) and the market rate of interest on similar bonds is 10%. b. The bonds pay cash interest annually ($4,000) and the market rate of interest on similar bonds is 8%. c. The bonds pay cash interest annually ($4,000) and the market rate of interest on similar bonds is 6%. d. The bonds pay cash interest semiannually ($2,000) and the market rate of interest on similar bonds is 10%. e. The bonds pay cash interest semiannually ($2,000) and the market rate of interest on similar bonds is 8%. f. The bonds pay cash interest semiannually ($2,000) and the market rate of interest on similar bonds…arrow_forwardPresent Value of Bonds Payable; Premium Moss Co. issued $105,000 of five-year, 12% bonds with interest payable semiannually, at a market (effective) interest rate of 11%. Determine the present value of the bonds payable using the present value tables in Exhibit 8 and Exhibit 10. Round to the nearest dollar.arrow_forwardPresent entries to record the selected transactions described below: a. Issued $2,750,000 of 10-year, 8% bonds at 97. If an amount box does not require an entry, leave it blank. b. Amortized bond discount for a full year, using the straight-line method. If an amount box does not require an entry, leave it blank. c. Called bonds at 98. Assume the bonds were carried at $2,692,250 at the time of the redemption. If an amount box does not require an entry, leave it blank.arrow_forward
- Answer complete question in the format,, please answer in text form without imagearrow_forwardPresent Value of Bonds Payable; Premium Moss Co. issued $350,000 of four-year, 13% bonds, with interest payable semiannually, at a market (effective) interest rate of 12%. Determine the present value of the bonds payable, using the present value tables in Exhibit 5 and Exhibit 7. Round to the nearest dollar.arrow_forward2. Deccan Corporation issued 10% 1,000,000 bond on January 1.2011 The market rate of interest is 12% Interest is paid semi annual The term of the bond is 5 years. V. How much would an investor pay for this bond? VI. Make Journal entries to record the receipt of cash from the sale of the bond in Deccan Corporations books VII. Amortize the bond discount over the term of bond using a. Straight line Method b. interest rate method VIII. Make Journal entries to record the payment of interest on 31 December 2011.arrow_forward
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