Sunland Company is about to issue $464,000 of 10-year bonds paying an 11% interest rate, with interest payable annually. The discount rate for such securities is 10%. Click here to view the factor table. (For calculation purposes, use 5 decimal places as displayed in the factor table provided.) How much can Sunland expect to receive for the sale of these bonds? (Round answer to 0 decimal places, e.g. 2,575.) Sunland can expect to receive $ Barbara Jones made an investment of $7,606.08. From this investment, she will receive $1,000 annually for the next 15 years starting one year from now. Click here to view the factor table. (For calculation purposes, use 5 decimal places as displayed in the factor table provided.) What rate of interest will Barbara's investment be earning for her? (Hint: Use Table 4.) (Round answer to 0 decimal places, e.g. 25%.) Rate of interest %

Sunland Company is about to issue $464,000 of 10-year bonds paying an 11% interest rate, with interest payable annually. The discount rate for such securities is 10%. Click here to view the factor table. (For calculation purposes, use 5 decimal places as displayed in the factor table provided.) How much can Sunland expect to receive for the sale of these bonds? (Round answer to 0 decimal places, e.g. 2,575.) Sunland can expect to receive $ Barbara Jones made an investment of $7,606.08. From this investment, she will receive $1,000 annually for the next 15 years starting one year from now. Click here to view the factor table. (For calculation purposes, use 5 decimal places as displayed in the factor table provided.) What rate of interest will Barbara's investment be earning for her? (Hint: Use Table 4.) (Round answer to 0 decimal places, e.g. 25%.) Rate of interest %

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter13: Long-term Liabilities

Section: Chapter Questions

Problem 4EA: On January 1, 2018, Wawatosa Inc. issued 5-year bonds with a face value of $200,000 and a stated...

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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?
Sunland Railroad Co. is about to issue $286,000 of 9-year bonds paying an 11% interest rate, with interest payable annually. The discount rate for such securities is 12%. Click here to view the factor table. In this case, how much can Sunland expect to receive from the sale of these bonds? (For calculation purposes, use 5 decimal places as displayed in the factor table provided. Round answer to 0 decimal places, e.g. 2,525.) Present value of bonds $ LA
Wildhorse Co. is about to issue $329,900 of 6-year bonds paying an 11% interest rate, with interest payable semiannually. The discount rate for such securities is 10%.Click here to view the factor table.(For calculation purposes, use 5 decimal places as displayed in the factor table provided.)How much can Wildhorse expect to receive for the sale of these bonds? (Round answer to 0 decimal places, e.g. 2,575.)
Cullumber Railroad Co. is about to issue $296,000 of 6-year bonds paying an 11% interest rate, with interest payable annually. The discount rate for such securities is 12%.Click here to view the factor table.(For calculation purposes, use 5 decimal places as displayed in the factor table provided.)In this case, how much can Cullumber expect to receive from the sale of these bonds? (Round answer to 0 decimal places, e.g. 2,525.) Cullumber can expect to receive $enter a dollar amount rounded to 0 decimal places
Crane Company is about to issue $390,000 of 6-year bonds paying an 12% interest rate, with interest payable annually. The discount rate for such securities is 13%. Click here to view the factor table. (For calculation purposes, use 5 decimal places as displayed in the factor table provided.) In this case, how much can Crane expect to receive from the sale of these bonds? (Round answer to O decimal places, e.g. 2,575.) Crane can expect to receive $
Carla Vista Co. is about to issue $460,000 of 10-year bonds paying an 10% interest rate, with interest payable annually. The discount rate for such securities is 12%.Click here to view the factor table.(For calculation purposes, use 5 decimal places as displayed in the factor table provided.)In this case, how much can Carla Vista expect to receive from the sale of these bonds? (Round answer to 0 decimal places, e.g. 2,575. Carla Vista can expect to receive $enter a dollar amount to be recieved rounded to 0 decimal places
Marigold Inc. issues $4,100,000 of 7% bonds due in 10 years with interest payable at year-end. The current market rate of interest for bonds of similar risk is 10%. Click here to view factor tables. What amount will Marigold receive when it issues the bonds? (For calculation purposes, use 5 decimal places as displayed in the factor table provided and final answer to O decimal places, e.g. 458,581.) Amount received by Marigold when bonds were issued $ 10822
Ivanhoe Ltd. issued $425,000 of 5%, 5-year bonds on January 1, 2024. Interest is payable semi-annually. Calculate the price of the bond assuming the market rate of interest is: (a) 4%, (b) 5%, and (c) 6%. (For calculation purposes, use 5 decimal places as displayed in the factor table provided. Round final answers to O decimal places, e.g. 5,275.) Click here to view the factor table. Present Value of 1 Click here to view the factor table. Present Value of an Annuity of 1 (a) Market interest rate 4% (b) Market interest rate 5% (c) Market interest rate 6% No. Account Titles (a) Prepare the journal entry to record the issuance of the bond assuming the market rate of interest is: (a) 4%, (b) 5%, and (c) 6%. (List all debit entries before credit entries. 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 for the amounts. Round final answers to O decimal places,…
Concord Inc. issues $ 2,300,000 of 7% bonds due in 12 years with interest payable at year-end. The current market rate of interest for bonds of similar risk is 10%. What amount will Concord receive when it issues the bonds? (For calculation purposes, use 5 decimal places as displayed in the factor table provided and final answer to 0 decimal places, e.g. 458,581.)
Splish Inc. issues $3,700,000 of 7% bonds due in 12 years with interest payable at year-end. The current market rate of interest for bonds of similar risk is 10%.Click here to view factor tablesWhat amount will Splish receive when it issues the bonds? (For calculation purposes, use 5 decimal places as displayed in the factor table provided and final answer to 0 decimal places, e.g. 458,581.) Amount received by Splish when bonds were issued
Pharoah Corporation issues $420,000 of 11% bonds that are due in 11 years and pay interest semi-annually. At the time of issue, the market rate for such bonds is 10%. Click here to view the factor table PRESENT VALUE OF 1. Click here to view the factor table PRESENT VALUE OF AN ANNUITY OF 1. Calculate the bonds' issue price by (1) using the factor tables provided (2) a financial calculator, or (3) Excel function PV. (Hint: Refer to Chapter 3 for tips on calculating.) (Round present value factor calculations to 5 decimal places, e.g. 1.25124 and final answer to O decimal places e.g. 58,971.) Issue price of bond $ 328390
Ayayai Corporation issues $550,000 of 9% bonds, due in 9 years, with interest payable semiannually. At the time of issue, the market rate for such bonds is 10%. Click here to view factor tables. Compute the issue price of the bonds. (Round present value factor calculations to 5 decimal places, e.g. 1.25124 and the final answer to 0 decimal places e.g. 58,971.) Issue price of the bonds - $