A company issues GHS10 million of 6% bonds at a price of GHS100.50 for easch GHS100 nominal value with issue costs of GHS50,000. The bonds are redeemable after four years for GHS10,444,000. The effective annual interest for this financial instrument is 7%. Required: Calculate the amortised cost for the bond and show the interest income for each year to maturity.

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: Calculate the cost of capital of the bond!

A: Cost of capital refers to cost of raising and using money Formula I(1-t) + (fv-np)n---------------.…

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: Enviro Company issues 8%, 10-year bonds with a par value of $250,000 and semiannual interest…

A:

Q: On January 1, 2018, Piper Co. issued ten-year bonds with a face value of $6,000,000 and a stated…

A: Bonds payable: It is a long term liability to the organization issuing it. It is issued to raise…

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: On January 1, 2018, Ithaca Corp. purchases Cortland Inc. bonds that have a face value of $150,000.…

A: 1. Calculate the price Ithaca would have paid for the Cortland bonds on January 1, 2018 prepare a…

Q: On January 1, 20x1, POTENT POWERFUL Co. issued 12% bonds with face amount of P4,000,000 for…

A: The face value of the bond is 4,000,000. The coupon rate on bond is 12% and the annual coupon rate…

Q: the carrying value of the bonds after one​ year?

A: Here is the calculation for the above question.

Q: On January 1, 2022, a company issued serial bonds with a face value of P3,000,000 and stated rate of…

A: The question is based on the concept of Financial Accounting.

Q: On January 1, 2018, Global Sales issued $25,000 in bonds for $29,800. These are eight-year bonds…

A: Bonds are issued by a firm in order to raise fund. Bonds are purchased by investors and they get a…

Q: A graphics design company issued bonds in the amount of $1,000,000 with a stated interest rate of…

A: Formula: Interest amount = Principal amount x Interest rate x Time period. Interest is a charge on…

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: Spiller Corporation plans to issue 12%, 6-year, $560,000 par value bonds payable that pay interest…

A: Total cash proceeds = Present value of interest (annuity) + Present value of maturity value

Q: On Mar. 1, 2022, Top Company issued P 700,000 of 10% bonds to yield 8%. Interest is payable…

A: Issue price of bonds will be present value of maturity & interest annuity at yield rate.

Q: Lidl Company issues 89%6, 10-year.bonds with a par value of BD100,000 that pay interest…

A: Debentures are the fixed income securities issued by a business to raise capital in form of debt…

Q: Inc., issued $ 20,000,000. of bonds, which have a ten year term and a contract or payment interest…

A: Computation paid to bond holders =face value of Bond ×Contract interest rate ×612…

Q: Squabb Corporation issued a $12,000,000, 5-year bond, with a contract rate of 8%. The market rate of…

A: The bonds are the financial instruments for the business which are used to raise money from the…

Q: On January 1, 2020, Ellison Co. issued eight-year bonds with a face value of $6,000,000 and a stated…

A: A bond is a fixed obligation to pay that is offered to investors by a company or government…

Q: A company issues $50,000 of 4% bonds, due in 5 years, with interest payable semiannually. Calculate…

A:

Q: A company issues 9%, 20-year bonds with a par value of $750,000. The current market rate is 9%. The…

A: Bonds are sources of raising long-term funds by the company. The company pays periodic interest…

Q: Diana Inc. issued $300,000 of its 7%, 5-year bonds for $287,844 when the market rate was 8%. The…

A: Bonds are the debt security which is issued by government or corporates for arranging the funds.…

Q: On January 1, 2022, Nine Company sold 12% bonds with a face value of P500,000. The bonds mature in…

A: A bond is a long-term financing debt. Interest (called a coupon) is paid periodically on the bond to…

Q: Chicken Wings company issued P1 million face value bonds for P1,032,880 on January 2, 2022, a price…

A: Interest expense = issue price of bond ×yield

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: On January 1, 2022, Patrick Company purchased serial bonds with face amount of P3,000,000 and stated…

A: Purchase price of serial bond = Present value of annual interest  payments  discounted at Yeild per…

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: The Ginsberg Co. issued 10-year bonds on April 30, YR 1. The debt has a face value of $1,000,000 and…

A: Present value of bond Present value of bond is the sum of the present value of all periodic interest…

Q: P642,007.30 in b

A: Introduction Present value of bond:-

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, 2013, Aldrine Company issued 3 year bonds with face value of P5,000,000 at 99. The…

A: Interest expense is the cost of borrowing money that lender charges a borrower.

Q: On January 1, 2014, Buknoy Company purchased serial bonds with face value of P3,000,000 and stated…

A: To find the presert value of bond , we need to discount the future cash flow to find out the present…

Q: On January 1, 2020, Bonita Industries issued eight-year bonds with a face value of $5950000 and a…

A: Present value of principal = Face value of the bonds x Present value factor at market rate

Q: On January 1, 2017, Montercy Company issues 100 million unsecured bonds at an issue price 95 cents…

A: The amortized cost of debt is determined by discounting the future cash flows from the debt at the…

Q: Debond Corp. issues £1,000,000 face value of fi ve-year bonds, dated 1 January 2010,when the market…

A: A typical calculation often used to discount or amortize a bond, is identified as the effective…

Q: Diana Inc. issued $100,000 of its 9%, 5-year bonds for $96,149 when the market rate was 10%. The…

A: Bond: When the company needs money, the company issues fixed-income security that the investor buys.…

Q: Ideal Living Company has 8.5 percent bonds outstanding that are paid semi-annually and has the YTM…

A: A Bond refers to an instrument that represents the loan being made by the investor to the company…

Q: A company issues 8%, 20-year bonds with a par value of $500,000. The current market rate for the…

A: In this numerical has covered the concept of Bonds Payable

Q: b. Cheriel Inc. issued $600,000 of 9%, 10-year bonds on June 30, 2022, for $562,500. This price…

A: A bond seems to be a fixed-income investment product that reflects an investor's debt to a borrower…

Q: Garcia Company issues 10%, 15-year bonds with a par value of $280,000 and semiannual interest…

A: Given information Bond life = 15 years x 2 = 30 periods Par value = $280,000 Stated interest rate =…

Q: On January 1, 2014, Behold Company purchased P5,000,000 face amount bonds with stated 12% interest.…

A: Market price of the bonds = Present value of principal + Present value of interest payments where,…

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: On January 1, 2012, One Company issued P5,000,000, 8% serial bonds, to be repaid in the amount of…

A: Solution: Serial bonds are the bonds that are structured in such a way that a portion of bond…

Q: Boyd Co. produces and sells aviation equipment. On the first day of its fiscal year, Boyd issued…

A: As posted multiple independent questions we are answering only first three sub parts kindly repost…

Q: Morgan Company issues 10%, 20-year bonds with a par value of $820,000 that pay interest…

A: Given, Face value = $820,000   Coupon rate = 10%/2 Coupon rate = 5%

Q: On January 1, 2021, Ithaca Corp. purchases Cortland Inc. bonds that have a face value of $210,000.…

A: 1. The journal entry to record the purchase of the bonds: Formulation: