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During a 12-month period, a company is permitted to issue new securities through crowdfunding up to a limit of:
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- City Slicker Corporation pays $55,000 into a bond sinking fund each year for the future redemption of bonds. During the first year, the fund earns $1,475. When the bonds mature, there is a sinking fund balance of $612,000, and $600,000 is needed to redeem the bonds. Required:Prepare the following general journal entries. a. The initial sinking fund deposit. b. The first year's earnings. c. The redemption of the bonds. d. The return of excess cash to the corporation.A new Corporate bond was initially sold by a stockholder to an investor for $950. The issuing corporation promised to pay the bondholder $40 interest every 6 months and $1,000 will be repaid at the end of 9 years. What is rate of return, nominal interest rate and effective interest rate.On the first day of the fiscal year, a company issues a $3,400,000, 9%, 5-year bond that pays semiannual interest of $153,000 ($3,400,000 x 9% × 1), receiving cash of $3,682,766. Journalize the first interest payment and the amortization of the related bond premium. Round to the nearest dollar. If an amount box does not require an entry, leave it blank. UQ Interest Expense Discount on Bonds Payable Cash
- Isaiah , the financial controller at Wall, is reviewing Walls financial instruments to determine their correct classification under IRS 9 Financial Instruments. Isaiah has the following information from the treasury team concerning three financial instruments: Government bond - •A bond with a face value of $300,000 and a four-year maturity was acquired on 1 July • Interest is received at 3% per annum and paid in arrears every six months. Investment in Pharmavax Limited shares- •25,000 shares In Pharmavax, purchased on 1 July 2022 at a total cost of $550,000. •The Investment is less than 5% of the issued share capital of Pharmavax. Loan to Ora Limited (Ora) •During the year, Wall loaned Ora $100,000, interest-free, to fund an upgrade to Ora's inventory system. •The loan Is due to be repaid in three years' time. Wall has a policy of holding all Intragroup loans to maturity. (a) Determine the correct classification of each financial instrument for the year ended 30 June 2023 in…Boyd Co. produces and sells aviation equipment. On the first day of its fiscal year, Boyd issued $83,000,000 of five-year, 8% bonds at a market (effective) interest rate of 10%, with interest payable semiannually. This information has been collected in the Microsoft Ex Online file. Open the spreadsheet, perform the required analysis, and input your answers in the questions below. Open spreadsheet Compute the following: A. The amount of cash proceeds from the sale of the bonds. Round your answer to the nearest dollar. $4 B. The amount of discount to be amortized for the first semiannual interest payment period, using the interest method. Round your answer to the nearest dollar. C. The amount of discount to be amortized for the second semiannual interest payment period, using the interest method. Round your answer to the nearest dollar. D. The amount of the bond interest expense for the first year. Round your answer to the nearest dollar.On the first day of the fiscal year, a company issues a $4,400,000, 7%, 8-year bond that pays semiannual interest of $154,000 ($4,400,000 x 7% x 2), receiving cash of $4,676,347. Journalize the first interest payment and the amortization of the related bond premium. Round to the nearest dollar. If an amount box does not require an entry, leave it blank. Previous Next Check My Work Save and Exit Submit Assignment for Grading
- GIFFCO contracted with the investment bank X.M. Retzoff to issue 25 million of short-term paper. The securities have a two year maturity, 3.75% rate and pay at the end of each quarter. Fees and commissions to Retzoff and GIFFCO's accountants came to 475,000. Assuming that GIFFCO issued the securities on January 1, book that transaction and the first interest accrual.On January 1, 2021, a firm issues bonds with a face amount of $1,500,000. The stated rate is 10%, the market rate is 12%, the term is three years and payments are made twice a year, on June 30 and Dec. 31. What is the present value of the bond that the firm records on its books on the issue date? What is the interest expense that the firm records on its books when making the first cash payment to investors on June 30, 2021?On the first day of the fiscal year, a company issues a $4,900,000, 6%, 6-year bond that pays semiannual interest of $147,000 ($4,900,000 × 6% × ½), receiving cash of $4,440,130. Journalize the first interest payment and the amortization of the related bond discount. Round to the nearest dollar. If an amount box does not require an entry, leave it blank.
- On the first day of the fiscal year, a company issues a $7,200,000, 10%, 7-year bond that pays semiannual interest of $360,000 ($7,200,000 x 10% x 2) receiving cash of $7,568,023. Journalize the first interest payment and the amortization of the related bond premium. Round to the nearest dollar. If an amount box does not require an entry, leave it blank. Accounts Payable Bonds Payable Cash Discount on Bonds Payable 00On June 1, $50,000 of treasury bonds were purchased between interest dates. The brokerage commission was $500. The bonds pay interest at 12%, which is paid semiannually on January 1 and July 1. What is the total cost to be debited to the Investment—Treasury Bonds account?On the first day of the fiscal year, a company issues a $3,400,000, 7%, 10-year bond that pays semiannual interest of $119,000 ($3,400,000 x 7% x 12), receiving cash of $2,764,428. Using straight-line amortization, journalize the first interest payment and the amortization of the related bond discount. Round to the nearest dollar. If an amount box does not require an entry, leave it blank. DO