QS 10-11 (Algo) Straight-Line: Premium bond computations LO P3 Enviro Company issues 11.00 %, 10-year bonds with a par value of $310,000 and semiannual interest payments. On the issue date, the annual market rate for these bonds is 8.00 %, which implies a selling price of 124.875. The straight-line method is used to allocate interest expense. 1. What are the issuer's cash proceeds from issuance of these bonds? 2. What total amount of bond interest expense will be recognized over the life of these bonds? 3. What is the amount of bond interest expense recorded on the first interest payment date? Complete this question by entering your answers in the tabs below.
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- RCISES i S Exercise 14-17A (Algo) Computing bond interest and price; recording bond issuance LO C2 Brin Company issues bonds with a par value of $700,000. The bonds mature in 6 years and pay 6% annual interest in semiannual payments. The annual market rate for the bonds is 8%. (Table B.1 Table B.2, Table B.3, and Table B.4) Note: Use appropriate factor(s) from the tables provided. 1. Compute the price of the bonds as of their issue date. 2. Prepare the journal entry to record the bonds' issuance. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Compute the price of the bonds as of their issue date. Note: Round all table values to 4 decimal places, and use the rounded table values in calculations. Round intermediate calculations to the nearest dollar amount. Table Values are Based on: Cash Flow Par (maturity) value Interest (annuity) Price of bonds n = i= Table Value Amount Required 1 Present Value $ Saved Required 2 > 0S14-4 Pricing bonds Bond prices depend on the market rate of interest, stated rate of interest and time. Requirements 1. Compute the price of the following 8% bonds of Country Telecom. a. $100,000 issued at 75.25 c. $100,000 issued at 94.50 b. $100,000 issued at 103.50 d. $100,000 issued at 103.25 2. Which bond will Country Telecom have to pay the most to retire at maturity: Explain your answer.Problem 10-3A (Algo) Straight-Line: Amortization of bond premium LO P3 Ellis Company issues 7.5%, five-year bonds dated January 1, 2021, with a $440,000 par value. The bonds pay interest on June 30 and December 31 and are issued at a price of $468,150. The annual market rate is 6% on the issue date. Required: 1. Calculate the total bond interest expense over the bonds' life. 2. Prepare a straight-line amortization table for the bonds' life. 3. Prepare the journal entries to record the first two interest payments. Answer is not complete. Complete this question by entering your answers in the tabs below. Required Required Required 1 2 3 Prepare a straight-line amortization table for the bonds' life. Note: Round your intermediate and final answers to the nearest whole dollar. Semiannual Interest Period-End 01/01/2021 $ 28,150 $ 468,150 06/30/2021 462,520X 12/31/2021 06/30/2022 12/31/2022 06/30/2023 12/31/2023 06/30/2024 12/31/2024 06/30/2025 12/31/2025 Unamortized Carrying Premium Value…
- QS 10-8 (Algo) Journalizing premium bond issuance LO P3 Garcia Company issues 12.0%, 15-year bonds with a par value of $370,000 and semiannual interest payments. On the issue date, the annual market rate for these bonds is 10.0%, which implies a selling price of 117 1/4. Prepare the journal entry for the issuance of these bonds for cash on January 1. 51 X Answer is complete but not entirely correct. Date General Journal Debit Credit No January 01 Cash 433,825 1 Bonds payable 63.825 X Premium on bonds payable 370,000 8 9:21 A ere to search a 71°F 99+ 9/29/20 40 TH0 A 144 prt sc delete home end 96 & 8 um %3D backspace lock T Y U 7\ home F G H. L enter pause MI 1 shit HP Pavilion Me time. Now playinExercise 10-4 (Algo) Straight-Line: Amortization of bond discount LO P2 Tano Company issues bonds with a par value of $82,000 on January 1, 2021. The bonds' annual contract rate is 7%, and interest is paid 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 $79,849. 1. What is the amount of the discount on these bonds at issuance? 2. How much total bond interest expense will be recognized over the life of these bonds? 3. Prepare a straight-line amortization table for these bonds. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Prepare a straight-line amortization table for these bonds. Note: Round your intermediate calculations to the nearest dollar amount. Semiannual Period-End Unamortized Carrying Value Discount (0) 01/01/2021 $ 2,151 $ 79,849 (1) 06/30/2021 80,208 (2) 12/31/2021 80,566 (3) 06/30/2022 80,925 (4) 12/31/2022 81,283…Exercise 10-17A (Algo) Computing bond interest and price; recording bond issuance LO C2 Brin Company issues bonds with a par value of $570,000. The bonds mature in 9 years and pay 8% annual interest in semiannual payments. The annual market rate for the bonds is 10%. (Table B.1, Table B.2, Table B.3, and Table B.4) Note: Use appropriate factor(s) from the tables provided. 1. Compute the price of the bonds as of their issue date. 2. Prepare the journal entry to record the bonds' issuance. Complete this question by entering your answers in the tabs below. Required Required 2 Compute the price of the bonds as of their issue date. Note: Round all table values to 4 decimal places, and use the rounded table values in calculations. Round intermediate calculations to the nearest dollar amount. Table Values are Based on: Cash Flow Par (maturity) value Interest (annuity) Price of bonds n = 18 i = 8.0% Table Value Amount Present Value 0.4581 x $570,000 $ 261,117 10.8378 x $ 22,800 = 247,102 $…
- Exercise 10-2 (Algo) Recording bond issuance at par, interest payments, and bond maturity LO P1 Brussels Enterprises issues bonds at par dated January 1, 2021, that have a $1,800,000 par value, mature in four years, and pay 10% interest semiannually on June 30 and December 31. 1. Record the entry for the issuance of bonds for cash on January 1. 2. Record the entry for the first semiannual interest payment and the second semiannual interest payment. 3. Record the entry for the maturity of the bonds on December 31, 2024 (assume semiannual interest is already recorded). Answer is complete but not entirely correct. No 1 Date January 01 Cash Bonds payable 2 June 30 Bond interest expense Cash 3 December 31 Bond interest expense Cash General Journal Debit Credit 1,800,000 1,800,000 90,000 90,000 90,000 4 December 31 Bonds payable 1,800,000 Bond interest payable × Accounts payable 1,890,000 O O 90,000 90,000Q-3: Dawlance Company issues 12%, 10-year bonds with a par value of Rs. 200,000 and annual interest payments. On the issue date, the annual market rate for these bonds is implies a selling price of 112. The effective interest method is used to allocate interest expense. A. What are the issuer's cash proceeds from issuance of these bonds? B. What total amount of bond interest expense will be recognized over life of these bonds? C. What amount of bond interest expense is recorded on the first interest payment date? D. Prepare the journal entries for the issuance of the bonds. Also calculate market price. 10%, whichQS 14-19A (Algo) Computing bond price C2 Compute the selling price of 8%, 10-year bonds with a par value of $340,000 and semiannual Interest payments. The annual market rate for these bonds Is 10%. Use present value Table B.1 and Table B.3 In Appendix B. Note: Round all table values to 4 decimal places, and use the rounded table values In calculations. Cash Flow $340,000 par (maturity) value $13,600 interest payment Price of Bond Table Value Present Value
- QS 14-22B (Algo) Effective Interest: Bond premium computations LO P5 Garcia Company issues 10%, 15-year bonds with a par value of $190,000 and semiannual interest payments. On the issue date, the annual market rate for these bonds is 8%, which implies a Selling price of 117 4. The effective interest method is used to allocate interest expense. 1. What are the issuer's cash proceeds from issuance of these bonds? 2. What total amount of bond interest expense will be recognized over the life of these bonds? 3. What amount of bond interest expense is recorded on the first interest payment date? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 What are the issuer's cash proceeds from issuance of these bonds? Cash proceeds Required 1 Required 2 >Problem 10-3A (Algo) Straight-Line: Amortization of bond premium LO P3 Ellis Company issues 8.0%, five-year bonds dated January 1, 2020, with a $530,000 par value. The bonds pay interest on June 30 and December 31 and are issued at a price of $575,210. The annual market rate is 6% on the issue date Required: 1. Calculate the total bond interest expense over the bonds' life. 2 Prepare a straight-line amortization table for the bonds' life. 3. Prepare the journal entries to record the first two interest payments. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Calculate the total bond interest expense over the bonds' life. Total bond interest expense over life of bonds: Amount repaid payments of Par value at maturity Total repaid Less amount borrowed Total bond interest expense Required 2 >Use the following to answer questions 11 – 15 AL issues 4.0%, 20-year bonds with a face amount of $1,000,000 for $986,529.23. The market interest rate for bonds of similar risk and maturity is 4.1%. Interest is paid annually. 11. $. Determine the interest payment. 12. $ (rounded to nearest dollar). Determine interest expense for the first interest payment. What will happen to interest expense each interest payment? (Increase, decrease, remain constant) 13. What will happen to the bond liability (carrying value) each interest payment? (Increase, decrease, remain constant). 14. How much will the company pay out $ when the bonds mature in 20 years (assume all interest payments have already been paid)? 15.