E10-7 (Algo) Computing the Price of a Bond Issued at a Discount LO10-4 National Motors Corporation is planning to issue bonds with a face value of $257,500 and a coupon rate of 6 percent. The bonds mature in 5 years and pay interest semiannually every June 30 and December 31. All of the bonds were sold on January 1 of this year. (EV of $1. PV of $1. FVA of $1, and PVA of $1) Note: Use appropriate factor(s) from the tables provided. Round your final answer to whole dollars. Determine the issuance price of the bonds assuming an annual market rate of interest of 8.0 percent.

E10-7 (Algo) Computing the Price of a Bond Issued at a Discount LO10-4 National Motors Corporation is planning to issue bonds with a face value of $257,500 and a coupon rate of 6 percent. The bonds mature in 5 years and pay interest semiannually every June 30 and December 31. All of the bonds were sold on January 1 of this year. (EV of $1. PV of $1. FVA of $1, and PVA of $1) Note: Use appropriate factor(s) from the tables provided. Round your final answer to whole dollars. Determine the issuance price of the bonds assuming an annual market rate of interest of 8.0 percent.

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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ok t ces E10-7 (Algo) Computing the Price of a Bond Issued at a Discount LO10-4 National Motors Corporation is planning to issue bonds with a face value of $256,500 and a coupon rate of 5 percent. The bonds mature in 7 years and pay interest semiannually every June 30 and December 31. All of the bonds were sold on January 1 of this year. (FV of $1, PV of $1, FVA of $1, and PVA of $1) Note: Use appropriate factor(s) from the tables provided. Round your final answer to whole dollars. Determine the issuance price of the bonds assuming an annual market rate of interest of 7.5 percent. Issue price $ 229,032
Please find 1) Interest expense 2) cash paid 3) bonds payable Required information P10-6 (Algo) Recording and Reporting Bonds Issued at a Discount LO10-4 [The following information applies to the questions displayed below.] PowerTap Utilities is planning to issue bonds with a face value of $2,100,000 and a coupon rate of 9 percent. The bonds mature in 10 years and pay interest semiannually every June 30 and December 31. All of the bonds were sold on January 1 of this year. PowerTap uses the effective-interest amortization method. Assume an annual market rate of interest of 10 percent. (FV of $1, PV of $1. FVA of $1, and PVA of $1) (Use the appropriate factor(s) from the tables provided.) P10-6 Part 1 Required: 1. What was the issue price on January 1 of this year? (Round your final answers to nearest whole dollar amount.) Issue price $ 2,100,000
Check my work E10-4 (Algo) Computing Issue Prices of Bonds Sold at Par, at a Discount, and at a Premium LO10-2, 10-4, 10-5 James Corporation is planning to issue bonds with a face value of $501,000 and a coupon rate of 6 percent. The bonds mature in 7 years and pay interest semiannually every June 30 and December 31. All of the bonds will be sold on January 1 of this year. (FV of $1, PV of $1, FVA of $1, and PVA of $1) (Use the appropriate factor(s) from the tables provided. Round your final answer to whole dollars.) Required: Compute the issue (sales) price on January 1 of this year for each of the following independent cases: a. Case A: Market interest rate (annual): 4 percent. Issue price b. Case B: Market interest rate (annual): 6 percent. Issue price tv 19
Saved Help Save C E10-8 (Algo) Recording and Reporting a Bond Issued at a Discount (with Discount Account) LO10-4 Park Corporation is planning to issue bonds with a face value of $620,000 and a coupon rate of 7.5 percent. The bonds mature in 8 years and pay interest semiannually every June 30 and December 31. All of the bonds were sold on January 1 of this year. Park uses the effective-interest amortization method and also uses a discount account. Assume an annual market rate of interest of 8.5 percent. (FV of $1, PV of $1, EVA of $1, and PVA of $1) (Use the appropriate factor(s) from the tables provided. Round your final answer to whole dollars.) Required: 1.&2. Prepare the journal entries to record the issuance of the bonds and interest payment on June 30 of this year. 3. What bonds payable amount will Park report on its June 30 balance sheet? Complete this question by entering your answers in the tabs below. Reg 1 and 2 Req 3 1.&2. Prepare the journal entries to record the issuance…
Saved Help Save E10-13 (Algo) Recording and Reporting a Bond Issued at a Premium (with Premium Account) LO10-5 Park Corporation is planning to issue bonds with a face value of $4,000,000 and a coupon rate of 7 percent. The bonds mature in 10 years and pay interest semiannually every June 30 and December 31. All of the bonds were sold on January 1 of this year. Park uses the effective-interest amortization method and also uses a premium account. Assume an annual market rate of interest of 6.0 percent. (FV of $1, PV of $1, FVA of $1, and PVA of $1) (Use the appropriate factor(s) from the tables provided.) Required: 1.&2. Prepare the journal entry to record the issuance of the bonds and the interest payment on June 30 of this year 3. How will Park present its bonds on its June 30 balance sheet? Complete this question by entering your answers in the tabs below. Req 1 and 2 Req 3 Prepare the journal entry to record the issuance of the bonds and the interest payment on June 30 of this year.…