Question 3 of 10. Olympia, who files single, purchased a 5% corporate bond in 2018. It matured in 2022; Olympia paid $1,500 for the bond and received $30 What is the par value of the bond?
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Question 3 of 10. Olympia, who files single, purchased a 5% corporate bond in 2018. It matured in 2022; Olympia paid $1,500 for the bond and received $30 What is the par
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- 9. Determining Interest. Jackie Martin purchased three $1,000 corporate bonds issued by Starbucks. The bonds pay 2.45 percent annual interest and mature in 2026. What is the total dollar amount of interest Jackie will receive for her three bonds each year? e here to search 1O1 4. T CO 96 %2Richard purchased a $1,000 bond issued by Salient Industries on January 2, 2022. The bond is due in 10 years and has an annual rate of 5.3%. How much cash should Richard expect to collect in total if he holds the bond until the maturity date? O $530 O $1,053 O $1,530 O $1,000 Save for Submit AnswerZBar Second Problem Bond Information: 1) ZBar sells 40 bonds with a face value of $10,000 each on January 1, 2018. 2) The board of directors determines these bonds will have a 5 year life, have a stated rate of 18%, and pay interest semiannually. 3) The current market rate is found to be 20% on the date of sale. Calculation of Cash Proceeds: Step 1: Cash Payment of Interest Step 2: Present Values of Paid Amounts Partial Repayment Schedule (Just the first 4 periods) Cash Interest Face Carrying Value Date PMT Expense Amort. Discount Value START 1/1/2018 Period # 1 6/30/2018 Period # 2 12/31/2018 Period # 3 6/30/2019 Period # 4 12/31/2019
- Problem 2: Serial Bonds: X Corporation is deciding whether to buy an 12%, P2,000,000-par value bond of Triple A Corporation. They will be issued on Jan. 1, 2022. The bonds mature every year end over 5 years. How much should X offer to purchase the bonds so that it will earn 13%?(b) Bonita Co. sells $431,000 of 12% bonds on June 1, 2020. The bonds pay interest on December 1 and June 1. The due date of the bonds is June 1, 2024. The bonds yield 8%. On October 1, 2021, Bonita buys back $137,920 worth of bonds for $144,920 (includes accrued interest). Give entries through December 1, 2022. Prepare a bond amortization schedule using the effective-interest method for discount and premium amortization. Amortize premium or discount on interest dates and at year-end. (Round answers to 0 decimal places, e.g. 38,548.)Question 2 of 15. Ping purchased a $15,000 bond on the secondary market. He paid a $1,000 premium. What is Ping's basis? $1,000 $14,000 $15,000 $16, 000
- 2) An individual purchased a $80,000 bond on its issue date, September 1, 2023. The bond pays interest at maturity, August 31, 2025, at a rate of 5% compounded annually. What amount of interest must be included in income in 2023 and 2024, respectively? A $4,000 and $4,200 B $4,200 and $4,000 C $4,000 and $4,000 D $4,200 and $4,200 E None of theseI only need part B Part AOn January 1, 2023, Baker Company purchased, as an investment, 5% bonds, having a maturity value of$150,000, for $138,400. The bonds provide the bondholders with a 7% yield. They are dated January 1,2023, and mature January 1, 2033, with interest receivable June 30 and December 31 of each year. BakerCompany uses the effective-interest method to allocate unamortized discount or premium. The bonds areclassified in the held-to-maturity category.a) Prepare the schedule of interest revenue and bond amortization from January 1, 2023 through December31, 2025.January 1, 2023June 30, 2023December 31, 2023June 30, 2024December 31, 2024June 30, 2025December 31, 2025b) Prepare the journal entry at the date of the bond purchase.c) Prepare the journal entry to record the interest received and the amortization for June 30, 2023.d) Prepare the journal entry to record the interest received and the amortization for December 31, 2025. Part B Assume the same information as…On 1/1/20 Wiley purchased $300,000 in 8% 5 year bonds when the effective interest rate was 10%. The bonds pay interest on 12/31 each year. Wiley has a 12/31 year end. These bonds are considered available for sale a. Prepare journal entries for the bonds for 2020 and 2021 assuming the following fair value information: 12/31/20 $245,000 and 12/31/21 $270,000. b. Create a 3 column comparison Balance Sheet and Income Statement for 12/31/2021. One Column for each assumption: HTM, AFS, and Trading.
- Problem 14-46 (b) (LO. 2, 3) Sophie purchased $100,000 of Stoudemire Corporation face value bonds for $86,000 on November 19, 2019. The bonds had been issued with $14,000 of original issue discount (OID), because Stoudemire was in financial difficulty in 2019. On November 30, 202o, Sophie sold the bonds for $87,000 after amortizing $1,200 of the original issue discount. What are the nature and amount of Sophie's gain or loss? 2,200 x of ordinary income x from the sale of the bonds. Feedback Check My Work Original issue discount arises when the issue price of a debt obligation is less than the maturity value of the obligation.Problem 4 On July 1, 2019, Pell Company purchased Green Company ten year, 8% bonds with a face amount of P5,000,000. The bonds mature on June 30, 2020 and pay interest semiannually on June 30 and December 31. Using the recorded bond discount amortization of 18,000 for the six months ended December 31, 2019. What amount is the interest income for 2019? a. 168,000 b. 182,000 C 200,000 d. 218,000 EFFECTIVE INTEREST METHOD Problem 5 On January 1, 2018, Arabian Company purchased serial bonds with face amount of P3,000,000 and stated 12% interest payable annually every December 31. The bonds are to be held as financial assets at amortized cost with 10% effective yield. The bonds mature at annual installment of P1,000,000 every December 31. The rounded present value of 1 at 10% for. 0.91 One period Two periods 0.83 Three periods 0.75 What is the present value of the serial bonds on January 1, 2018? a. 3,106,800 b. 3,060,000 c 3,045,000 d. 3,149,000On, January 25, 2025 Samantha corporation purchases investment bonds in Tyler corporation for $20,000 cash. The bonds paid 10% semiannually, and had accrued interest for $250 at the time of the purchase. Record the transaction.