Please answer both interlinked parts Part 2On October 1, ET Inc. has available for issue a $324,000 bond due in eight years. Interest at the rate of 5.5% is to be paidsemiannually. Calculate the issue price if the market interest rate is: (Do not round intermediate calculations. Round the finalanswers to 2 decimal places.)a.b.C.Market Interest Issue Price of theBondsRate4.5%5.5%6.25%K Problem 14-5A Calculating the issue price using business calculator PV function LO4Part 1On April 1, 2020, ET Inc. has available for issue $391,000 bonds due in four years. Interest at the rate of 5.5% is to be paid quarterly.Calculate the issue price if the market interest rate is: (Do not round intermediate calculations. Round the final answers to thenearest whole dollar.)a.b.C.Market Interest Issue Price of theBondsRate6.5%5.5%4.5%

Bond valuation (BV) refers to a method or technique which is used to compute the current value or…

Part 2 On October 1, ET Inc. has available for issue a $324,000 bond due in eight years. Interest at the rate of 5.5% is to be paid semiannually. Calculate the issue price if the market interest rate is: (Do not round intermediate calculations. Round the fina answers to 2 decimal places.) a. b. C. Market Interest Issue Price of the Bonds Rate 4.5% 5.5% 6.25% 4

Part 2 On October 1, ET Inc. has available for issue a $324,000 bond due in eight years. Interest at the rate of 5.5% is to be paid semiannually. Calculate the issue price if the market interest rate is: (Do not round intermediate calculations. Round the fina answers to 2 decimal places.) a. b. C. Market Interest Issue Price of the Bonds Rate 4.5% 5.5% 6.25% 4

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter9: Long-term Liabilities

Section: Chapter Questions

Problem 65BE

See similar textbooks

Similar questions

Problem 14-5A Calculating the issue price using business calculator PV function LO4 Part 1 On April 1, 2020, ET Inc. has available for issue $391,000 bonds due in four years. Interest at the rate of 5.5% is to be paid quarterly. Calculate the issue price if the market interest rate is: (Do not round intermediate calculations. Round the final answers to the nearest whole dollar.) a. b. C. Market Interest Issue Price of the Bonds Rate 6.5% 5.5% 4.5%
Chegg Home Expert Q&A My solutions Guide Me Notifications 8 Che Student question Time Left: 00:09:01 St Problem 31-30 Money-market yields In January 2020, three-month (91-day) Treasury bills were selling at a discount of 1.58%. What was the annual yield? Assume 365 days in a year. Note: Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places. Answer is complete but not entirely correct. Annual yield 6.44 % Show Transcribed Text
Exercise 14-5 Calculating the issue price using business calculator PV function LO4 On October 1, 2020, Eastern Timber Inc. has available for issue $700,000 bonds due in four years. Interest at the rate of 5.00% is to be paid quarterly. Calculate the issue price if the market interest rate is: (Do not round intermediate calculations. Round the final answers to the nearest whole dollar.) Issue Price a. 6% 5% c. 4%
QUESTION 3 On 1 January 2022, Rodney Inc. provided services to Smith Co. in exchange for Smith's $300,000, 2-year 8% note with interest compounded semi-annually on July 1 and January 1. The current market rate of similar notes is 12%. Rodney Inc. financial year ends December 31. REQUIRED: 1. Provide the following input values from your financial calculator: N = I/Y= PMT = $ 2. The note was issued at 3. The present value of the note is $ FV = $ %
Problem 14-1A Calculating bond prices and recording issuance with journal entries LO3, 5, 6 Queen Energy Inc. Issued bonds on January 1, 2023, that pay interest semiannually on June 30 and December 31. The par value of the bonds is $340,000, the annual contract rate is 12%, and the bonds mature in 10 years. (Use IABLE 14A1 and IABLE 14A.2) (Use appropriate factor(s) from the tables provided.) Required: a. For each of these three situations, determine the issue price of the bonds. (Do not round intermediate calculations. Round the final answers to the nearest whole dollar.) (1) (2) (3) Market rate Issue Price of the interest Bonds 10% 12% 14% b. For each of these three situations, prepare the journal entry that would record the issuance, assuming the market interest rate at the date of issuance was (1) 10%, (2) 12%, (3) 14%. ( Use PV tables in determining the issue price of the bonds. Do not round intermediate calculations, Round the final answers to the nearest whole dollar.)
Problem 9-24 Treasury Bills (LO1, CFA1) A Treasury bill that settles on May 18, 2022, pays $100,000 on August 21, 2022. Assuming a discount rate of 3.32 percent, what are the price and bond equivalent yield? Use Excel to answer this question. Note: Round your price answer to 2 decimal places. Enter your yield answer as a percent rounded to 3 decimal places. Answer is complete but not entirely correct. $ 99,147.64 1.665 Price Bond equivalent yield %
Instructions Present Value Tables Chart of Accounts Journal Final Questions Instructions Campbell Inc. produces and sells outdoor equipment. On July 1, Year 1, Campbell Inc. issued $60,400,000 of 10-year, 12% bonds at a market (effective) interest rate of 11%, receiving cash of $64,009,069. Interest on the bonds is payable semiannually on December 31 and June 30. The fiscal year of the company is the calendar year. Required: 1. Journalize the entry to record the amount of cash proceeds from the issuance of the bonds on July 1, Year 1.* 2. Journalize the entries to record the following:* a. The first semiannual interest payment on December 31, Year 1, and the amortization of the bond premium, using the straight-line method. (Round to the nearest dollar.) b. The interest payment on June 30, Year 2, and the amortization of the bond premium, using the straight-line method. (Round to the nearest dollar.) 3. Determine the total interest expense for Year 1. 4. Will the bond proceeds always be…
Exercise 10-2 Straight-Line: Amortization of bond discount LO P2 Tano issues bonds with a par value of $99,000 on January 1, 2017. The bonds' annual contract rate is 6%, and interest is paid semiannually on June 30 and December 31. The bonds mature in three years. The annual market rate at the date of issuance is 8%, and the bonds are sold for $93,809. 1. What is the amount of the discount on these bonds at issuance? 2. How much total bond interest expense will be recognized over the life of these bonds? 3. Prepare an amortization table using the straight-line method to amortize the discount for these bonds. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Prepare an amortization table using the straight-line method to amortize the discount for these bonds. (Round your intermediate calculations to the nearest dollar amount.) Carrying Value Semiannual Period- Unamortized End Discount 01/01/2017 06/30/2017 12/31/2017 06/30/2018…
QUESTION 2 a On January 1, 20X1, your firm issues a $10 000, 5-year, 10% bond with interest payable annually for $10.389 At the time of the issuance, market rates are 9%. Journalize the issuance of the bond DATE Debit Credit Bonds payable 10000 alek-sove ond Submit to save ond suomit Click Sove All Answers to sove ofl onswers. Save Al 89
Exercise 10-2 Straight-Line: Amortization of bond discount LO P2 Tano issues bonds with a par value of $99,000 on January 1, 2017. The bonds' annual contract rate is 6%, and interest is paid semiannually on June 30 and December 31. The bonds mature in three years. The annual market rate at the date of issuance is 8%, and the bonds are sold for $93,809. 1. What is the amount of the discount on these bonds at issuance? 2. How much total bond interest expense will be recognized over the life of these bonds? 3. Prepare an amortization table using the straight-line method to amortize the discount for these bonds. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 What is the amount of the discount on these bonds at issuance? Discount
Question 9 On 1 Dec. 2020, Segma Trading Co. borrowed $300,000 for 90 days at 5% by signing a note payable on the same amount Required: Select the right journal entry to record the payment of the note at its maturity date. O Dr. Note Payable $300,000 Dr. Interest Payable $2,500 Dr. Interest Expence $1,250 O Dr. Cash Cr. Cash $303,750 Cr. Note Payable $300,000 Cr. Interest Expence $2,500 Cr. Interest Payable $1,250 O Dr. Note Payable $300,000 Dr. Interest Expence $2,500 Dr. Interest Payable $1,250 Cr. Cash $303,750 O Dr. Note Payable $300,000 Dr. Interest Expence $3,750 Cr. Cash $303,750 $303,750
Problem 9-48 Part 2 2. If the market interest rate is 8 %, the bonds will issue at $1,742,930. Record the bond issue on January 1, 2021, and the first two semiannual interest payments.on June 30, 2021, and December 31, 2021. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" In the first account fleld. Round your answers to the nearest dollar amount.) No 1 Required Information Problem 9-4B Record bond issue and related interest (LO9-5) [The following information applies to the questions displayed below] Viking Voyager specializes in the design and production of replica Viking boats. On January 1, 2021, the company issues $1,870,000 of 7% bonds, due in 10 years, with interest payable semiannually on June 30 and December 31 each year. 2 3 Date January 01, 2021 June 30, 2021 Answer is not complete. General Journal Cash Discount on Bonds Payable Bonds Payable December 31, 202 Interest Expense Interest Expense Discount on Bonds Payable Cash…