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) (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
Q: Barrett Enterprises issues bonds with a face value of $900,000 on their issue date. The bonds…
A: Issue price of the bonds = Present value of principal + Present value of interest payments where,…
Q: Buffalo Corporation issues $590,000 of 9% bonds, due in 10 years, with interest payable…
A: Number of half years=10×2=20 half-years
Q: On January 1, DDD issued ten-year bonds with a face amount of P1,000,000 and a stated interest rate…
A: Issue price of the bonds = Present value of principal + Present value of interest payments where,…
Q: Chase Corporation has $7,500,000 of 5 percent, 10-year bonds dated January 1, with interest payment…
A: A bond payable's sustaining value is another word for the book value of a bond payable. Bond payable…
Q: Hartford Research issues bonds dated January 1 that pay interest semiannually on June 30 and…
A: The bond issue price is calculated by discounting the future cash flows from the bond with the…
Q: nviro Company issues 8%, 10-year bonds with a par value of $250,000 and semiannual interest…
A: Bonds payable are one of the sources of finance and are shown as liability. If the interest rate is…
Q: Bringham Company issues bonds with a par value of $800,000. The bonds mature in 10 years and pay 6%…
A: Issue price of the bonds = Present value of principal + Present value of interest payments where,…
Q: Renfro Company issued $300,000 of 8%, 10-year bonds at 102. Interest is paid annually, and the…
A: We have the following information: Renfro Company issued $300,000 of 8%, 10-year bonds at 102%…
Q: Enviro Company issues 8%, 10-year bonds with a par value of $250,000 and semiannual interest…
A:
Q: Cybernetics Inc. issued $60 million of 5% three-year bonds, with coupon paid at the end of every…
A: Bond refers to the borrowed security issued by the company to raise funds from the market by making…
Q: Moss Co. issued $840,000 of five-year, 11% bonds, with interest payable semiannually, at a market…
A: A bond is a financial security that is sold by business firms to raise borrowing funds. It is issued…
Q: Bringham Company issues bonds with a par value of $590,000. The bonds mature in 5 years and pay 9%…
A: 1. Table Values are Based on: n= 10 i= 6% Cash Flow Table Value…
Q: Moss Co. issued $101,000 of five-year, 12% bonds with interest payable semiannually, at a market…
A: A bond is a debt instrument that is issued by the organization to raise the funds from the investor…
Q: On January 1, 2018, Wauwatosa Inc. issued 5- year bonds with a fave value of $200,000 and a stated…
A: When the issue price of the bond is higher than its face value, the bonds are said to be issued at a…
Q: Splish Brothers Inc. issues $7,600,000 of 5% bonds due in 5 years with interest payable at year-end.…
A: Bonds are issued by large organizations such as corporations, municipal organizations, state or…
Q: Culver Corporation issues $450,000 of 8% bonds, due in 9 years, with interest payable semiannually.…
A: Issue price of the bonds = Present value of principal + Present value of interest payments where,…
Q: Concord Corporation issues $530,000 of 9% bonds, due in 10 years, with interest payable…
A:
Q: Hartford Research issues bonds dated January 1 that pay interest semiannually on June 30 and…
A: Present value: It refers to the current value of the sum of money or the series of cash flows that…
Q: Garcia Company issues 10%, 15-year bonds with a par value of $240,000 and semiannual interest…
A: Cash proceeds from the issuance of bonds = Par value of bonds x Issue price %
Q: Krystian Inc. issued 12-year bonds with a face value of $150,000 and a stated rate of 4% when the…
A: Formula: Total cash flows = Principal + Interest
Q: onds pay interest semiannually on June 30 and December 31. If the bonds are retired at the end of…
A: Amortization of bonds refers to the process in which the carrying value of the bond is adjusted with…
Q: Barrett Enterprises issues bonds with a face value of $900,000 on their issue date. The bonds…
A: Bonds: Bonds are long-term promissory notes that are represented by a company while borrowing money…
Q: Coffman Company sold bonds with a face value of $1,000,000 for $880,496. The bonds have a coupon…
A: Bonds Payable - Bonds is the amount payable at fixed interest rate at fixed period. It is the long…
Q: Morgan company issues 9%, 20-year bonds with a par value of 780,000 that pay interest semiannually .…
A: Bonds: Bonds are long-term promissory notes that are represented by a company while borrowing…
Q: Brin Company issues bonds with a par value of $590,000. The bonds mature in 5 years and pay 9%…
A: Semiannual interest = Face value of bonds x rate of interest x no. of months/12 = $590,000 x 9% x…
Q: Enviro Company issues 8%, 10-year bonds with a par value of $250,000 and semiannual interest…
A: Premium on bonds payable = Cash proceeds from issuance of bonds - Par value of bonds Semi annual…
Q: Bonita Corporation issues $590,000 of 9% bonds, due in 9 years, with interest payable semiannually.…
A: Calculate the cash interest payment for bonds.
Q: Eveready Company issued P100,000 of 8% term bonds on January 1, 2X19, due on January 1, 2X24, with…
A: Bond: A bond is a debt security. It is issued to raise money from investors who is willing to lend…
Q: Tano Company issues bonds with a par value of $87,000 on January 1, 2021. The bonds' annual contract…
A: Introduction: Bonds are issued to finance ongoing maintenance as well as infrastructure upgrades.…
Q: Moss Co. issued $101,000 of five-year, 11% bonds with interest payable semiannually, at a market…
A: Concept: The present value (PV) is defined as the current value of the future sum of money or the…
Q: Bringham Company issues bonds with a par value of $520,000. The bonds mature in 10 years and pay 8%…
A: Solution 1: Chart Values are based on: n= (10 Years*2) 20 Half years i= (10%/2) 5%…
Q: Amount received by Splish when bonds were issued
A: Computation of amount received by Splish on issue of bonds shall be shown below :
Q: On January 1, Year 1, Hart Company issued bonds with a face value of $150,000, a stated rate of…
A: Amortisation Table Date Cash Payment Interest Expense Premium Amortization Carrying Value…
Q: Garcia Company issues 10%, 15-year bonds with a par value of $240,000 and semiannual interest…
A: Amortization of bond discounts using Effective Method: The issuance of bond at a price lower than…
Q: the current year, Barton Corporation issued 11%, 5-year bonds with a face value of $112,000. The…
A: Bond Discount Amortization Using the Effective Interest Rate Method When a bond is sold at a…
Q: Windsor, Inc. issues $4,500,000 of 6% bonds due in 7 years with interest payable at year-end. The…
A: Amount received=[Interest Amount×PVAF]+[Bond Amount×PVIF]
Q: On January 1, Year 1, Hart Company issued bonds with a face value of $103,000, a stated rate of…
A: The bonds are issued at premium means the bonds are issued at more value than face value of bonds.
Q: On January 1, Topeka Outfitters issued $175,000 of 6%, 3-year bonds when the market rate of interest…
A: 1) Value of bond is the present value of cash inflows discounted at the market rate of return Value…
Q: Garcia Company issues 10%, 15-year bonds with a par value of $240,000 and semiannual interest…
A: Bond: It can be defined as a financial instrument of indebtedness that reflects a loan made by the…
Q: On January 1, Boston Enterprises issues bonds that have a $1,350,000 par value, mature in 20 years,…
A:
Q: nviro Company issues 8%, 10-year bonds with a par value of $250,000 and semiannual interest…
A: Solution 1: Cash proceeds = Par value * 87.5% = 250000 *87.5% = $218,750
Q: Bringham Company issues bonds with a par value of $600,000. The bonds mature in 10 years and pay 6%…
A: Price of bond: The price of a bond is the sum of the present value of interest and the present value…
Q: Debond Corp. issues £1,000,000 worth of fi ve-year bonds, dated 1 January 2010, whenthe market…
A: Bonds payable: It is a long term liability to the organization issuing it. It is issued to raise…
Q: On January 1, 2018, Ellison Co. issued 8-year bonds with a face value of $300,000 and a stated…
A: The value of bonds are determined and based on the market rate of interest. Sometimes, the…
Q: Moss Co. issued $42,000,000 of five-year, 11% bonds, with interest payable semiannually, at a market…
A: Present Value: The value of today’s amount expected to be paid or received in the future at a…
Q: Brin Company issues bonds with a par value of $540,000. The bonds mature in 6 years and pay 9%…
A:
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
- A company issued bonds with a $100,000 face value, a 5-year term, a stated rate of 6%, and a market rate of 7%. Interest is paid annually. What is the amount of interest the bondholders will receive at the end of the year?Krystian Inc. issued 10-year bonds with a face value of $100,000 and a stated rate of 4% when the market rate was 6%. Interest was paid semi-annually. Calculate and explain the timing of the cash flows the purchaser of the bonds (the investor) will receive throughout the bond term. Would an investor be willing to pay more or less than face value for this bond?OShea Inc. issued bonds at a face value of $100,000, a rate of 6%, and a 5-year term for $98,000. From this information, we know that the market rate of interest was ________. A. more than 6% B. less than 6% C. equal to 6% D. cannot be determined from the information given.
- On July 1, Somerset Inc. issued $200,000 of 10%, 10-year bonds when the market rate was 12%. The bonds paid interest semi-annually. Assuming the bonds sold at 58.55, what was the selling price of the bonds? Explain why the cash received from selling this bond is different from the $200,000 face value of the bond.Charleston Inc. issued $200,000 bonds with a stated rate of 10%. The bonds had a 10-year maturity date. Interest is to be paid semi-annually and the market rate of interest is 8%. If the bonds sold at 113.55, what amount was received upon issuance?On July 1, a company sells 8-year $250,000 bonds with a stated interest rate of 6%. If interest payments are paid annually, each interest payment will be ________. A. $120,000 B. $60,000 C. $7,500 D. $15,000
- Brin Company issues bonds with a par value of $540,000. The bonds mature in 6 years and pay 9% annual interest in semiannual payments. The annual market rate for the bonds is 12%. (Table B.1, Table B.2. Table 8.3, 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 Table Value Amount Present Value S Assessment Tool iFrameBrin Company issues bonds with a par value of $590,000. The bonds mature in 5 years and pay 9% annual Interest in semiannual payments. The annual market rate for the bonds is 12%. (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= Table Value Amount Present Value $ 0 Required 1 Prepare the journal entry to record the bonds' issuance. Note: Round intermediate calculations to the nearest dollar amount. Required 2 View…Brin Company issues bonds with a par value of $540,000. The bonds mature in 6 years and pay 9% annual interest in semiannual payments. The annual market rate for the bonds is 12%. (Table B.1, Table B.2, Table B.3, and Table B.4) (Use appropriate factor(s) from the tebles 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. (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 Table Value Amount Present Value Par (maturity) value Interest (annuity) Price of bonds Required 2 >
- Brin Company issues bonds with a par value of $590,000. The bonds mature in 5 years and pay 9% annual interest in semiannual payments. The annual market rate for the bonds is 12%. (Table B.1, Table B.2, Table B.3, and Table B.4) Note: Use appropriate factor(s) from the tables provided. Compute the price of the bonds as of their issue date. Prepare the journal entry to record the bonds' issuance.Your company issues $3,500,000 bonds at 7% interest with annual interest payments. Bonds have a maturity date in 30 years. At the time of issue, the market rate is 5%. а. Calculate the issue price of the bond. b. Record the journal entry for the issue of the bond С. Record the journal entry for the first interest payment d. How much interest is recorded on the income statement in Year 1? е. Record the journal entry for the final entry at the bond maturity date.. On 1/1/21, Ehrlich Co. issued 4 year bonds with a face value of $700,000. The stated (bond) rate is 8%, payable semiannually on 1/1 and 7/1. The market rate at the time of issuance was 10%. a. Calculate the issue price of the bonds. b. Prepare the journal entry for the issuance of the bonds. c. Complete the amortization table below. Date cash paid interest expense amortization carrying value 1/1/21 7/1/21 1/1/22 7/1/22 d. Prepare the journal entries for the 7/1/21 interest payment and amortization, 12/31/21 interest accrual and amortization, and 1/1/22 interest payment. e. Prepare the journal entry for retirement of the bonds at maturity f. Assume instead that the bonds were redeemed on 7/1/22 at 102. Prepare the journal entry.