7.50% notes due 2024 8.00 % notes due 2029 8.25 % notes due 2038 7.88% notes due 2043 6.80 % notes due 2025 $ 205,400,000 $ 349,200,000 $ 230,000,000 $ 205,000,000 $ 25,500,000 The above table summarizes the long-term debt of the Company on December 31, 2023. All of the notes were originally issued at their face (maturity) value and have been gradually repaid over time so that these amounts are the remaining balances at this date. Assume that the notes pay interest annually and mature on December 31 of the respective years. Required: Suppose that Healdsburg renegotiates the 8.25% notes on December 31, 2029, when the going interest rate is 9%. Healdsburg agrees to make 12 equal annual installments, commencing on December 31, 2030, rather than pay the annual interest payments and the $230 million in a single amount at maturity. What would the annual payments be? Note: Use tables, Excel, or a financial calculator. Enter your answer in whole dollars. Round your final answer to nearest whole dollar. (FV of $1, PV of $1, FVA of $1. PVA of $1, FVAD of $1 and PVAD of $1) Annual payments

7.50% notes due 2024 8.00 % notes due 2029 8.25 % notes due 2038 7.88% notes due 2043 6.80 % notes due 2025 $ 205,400,000 $ 349,200,000 $ 230,000,000 $ 205,000,000 $ 25,500,000 The above table summarizes the long-term debt of the Company on December 31, 2023. All of the notes were originally issued at their face (maturity) value and have been gradually repaid over time so that these amounts are the remaining balances at this date. Assume that the notes pay interest annually and mature on December 31 of the respective years. Required: Suppose that Healdsburg renegotiates the 8.25% notes on December 31, 2029, when the going interest rate is 9%. Healdsburg agrees to make 12 equal annual installments, commencing on December 31, 2030, rather than pay the annual interest payments and the $230 million in a single amount at maturity. What would the annual payments be? Note: Use tables, Excel, or a financial calculator. Enter your answer in whole dollars. Round your final answer to nearest whole dollar. (FV of $1, PV of $1, FVA of $1. PVA of $1, FVAD of $1 and PVAD of $1) Annual payments

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 91PSB

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10. Sullivan Corporation includes the following selected accounts in its general ledger at December 31, 2025: Viewthe selected accounts. "Notes Payable (long - term) $65, 000 Bonds Payable (long - term)S 195, 000 Accounts Payable$ 19,600 Salaries Payable $ 1,840 Interest Payable (due next year) $ 740 Sales Tax Payable $ 680 Premium on BondsPayable $ 5,600 Estimated Warranty Payable S 1,000 Prepare the liabilities section of Sullivan Corporation's balancesheet at December 31, 2025.
E13.8 (LO 2) (Refinancing of Short-Term Debt) On December 31, 2020, McDaniel Company had $1,200,000 of short-term debt in the form of notes payable due February 2, 2021. On January 21, 2021, the company issued 25,000 shares of its common stock for $38 per share, receiving $950,000 proceeds after brokerage fees and other costs of issuance. On February 2, 2021, the proceeds from the stock sale, supplemented by an additional $250,000 cash, are used to liquidate the $1,200,000 debt. The December 31, 2020, balance sheet is issued on February 23, 2021.InstructionsShow how the $1,200,000 of short-term debt should be presented on the December 31, 2020, balance sheet, including note disclosure.
22. Subject :- Accounting On August 1, 2022, Colombo Company's treasurer signed a note promising to pay $120,300 onDecember 31, 2022. The proceeds of the note were $116,100.b. Calculate the effective interest rate (APR) on the loan.Note: Enter your answer as a percentage rounded to 1 decimal place (i.e., 32.1).Effective interest rate
Problem 10 On December 31, 2020, Olaer Company received two P5,000,000 notes receivable from customers in exchanged for consulting services rendered. On both notes, interest is calculated on the outstanding principal balance at the annual rate of 4% and payable at maturity. The note from Nazareno Corporation, made under customary trade terms, is due on October 1, 2021 and the note from Mudag Corporation is due on December 31, 2025. The market interest rate for similar notes on December 31, 2020 was 10%. The compound interest factors to convert future value into present value at 10% follow: present value of 1 due in nine months, 0.93, and present value of 1 due in five years, 0.62. 1. At what amounts should these two notes receivable be reported in Nazareno’s December 31, 2020 statement of financial position? 2. At what amounts should these two notes receivable be reported in Mudag’s December 31, 2020 statement of financial position?
A P1000 000.00 issue of 3%, 15-year bonds is sold at 95%. The miscellaneous initial expense of the financing were P20 000.00 and yearly expenses of P2000.00 is incurred. What is the true cost the company is paying for the money it borrowed? (Ans. 3.8%)
On January 1, 2021, Jackie Company issued 10,000 P5,000 10% four-year bonds at an effective interest rate of 12%. The interest is payable every July 1 and December 31. On June 30, 2023, 6,000 of the bonds were retired at 98. ( Use 4 decimal for PV) 1 How much is the net effect of the bonds on the 2023 Statement of Comprehensive Income? [Indicate whether it is a gain or loss] 2 How much is the interest expense for 2024?
45. A company has an overdue 10% note payable to Filipino Bank amounting to P8,000,000 with accrued interest of P800,000 as of December 31, 2021. During the same date, the bank agreed to the following restructuring agreement: Reduce the principal obligation to P6,000,000. Waive the P800,000 accrued interest. Extend the maturity date to December 31, 2023. Annual interest of 8% of the new principal is to be paid on December 31, 2022 and 2023. The prevailing market interest rate on December 31, 2021 is 10%. How much is the gain on debt restructuring?
M10-6 (Algo) Recording Notes Payable [LO 10-2] Part 1 Skip to question [The following information applies to the questions displayed below.] Greener Pastures Corporation borrowed $1,250,000 on November 1, 2021. The note carried a 9 percent interest rate with the principal and interest payable on June 1, 2022. (a) The note issued on November 1. (b) The interest accrual on December 31.
A 13.2% P600,000 note payable was issued by Robin Company on March 1, 2020. The principal and interest, compounded annually, are due in three years. How much should be reported as noncurrent liabilities on December 31, 2021?
18 A company issues P5,000,000, 7.8%, 20-year bonds to yield 8% on January 1, 2022. Interest is paid on June 30 and December 31. The proceeds from the bonds are P4,901,036. Using effective-interest amortization, what will the carrying value of the bonds be on the December 31, 2022 statement of financial position? 4,903,160.00 4903160 4,903,160 4903160
On January 1, 2021, Jackie Company issued 10,000 P5,000 10% four-year bonds at an effective interest rate of 12%. The interest is payable every July 1 and December 31. On June 30, 2023, 6,000 of the bonds were retired at 98. How much is the interest expense for 2021?How much is the discount amortization during 2022?How much is the net effect of the bonds on the 2023 Statement of Comprehensive Income? [Indicate whether it is a gain or loss]How much is the interest expense for 2024?
E5.10 (LO 1) At the end of 2020, Montvale Associates borrowed $120,000 from the Bayliner Bank. The debt covenant specified that Montvale’s debt/equity ratio could not exceed 1.5:1 during the period of the loan. A summary of Montvale’s balance sheet after the loan follows. 2020 Assets Current assets $130,000 Long-term assets 350,000 Total assets $480,000 Liabilities and Shareholders’ Equity Current liabilities $130,000 Long-term liabilities 150,000 Shareholders’ equity 200,000 Total liabilities and shareholders’ equity $480,000 Compute Montvale’s debt/equity ratio immediately after the loan. How much additional debt can the company incur without violating the debt covenant?