A corporation floats ₱1,200,000 worth of bonds of ₱500 denomination. The bond rate is 9% and the bonds are to be retired in 10 years, the annual payment being nearly as equal as possible. Prepare an amortization schedule. Solve and show the solution.
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A corporation floats ₱1,200,000 worth of bonds of ₱500 denomination. The bond rate is 9% and the bonds are to be retired in 10 years, the annual payment being nearly as equal as possible. Prepare an amortization schedule.
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- A corporation sold an issue of 20-year bonds, having a total face value of Php 10,000,000, for Php 9,500,000, The bonds bear interest at 16%, payable semiannually. The company wishes to establish a sinking fund for retiring the bond issue and will make semiannual deposits that will earn 12% compounded semiannually. Compute the annual cost for interest and redemption of these bonds.A corporation sold an issue of 20 year bonds, having a total face value of P10 Million pesos forP9.5 Million pesos. The bonds bear interest at 16%, payable semiannually. The company wishesto establish a sinking fund for retiring the bond issue and will make semiannual deposits thatwill earn12%, compounded semi annually. Compute the annual cost for interest and redemptionof these bonds.A Corporation sold an issue of 15-year bonds, having a total face value of ₱12,000,000for ₱11,000,000. The bonds bear interest at 15%, payable semiannually. The companywishes to establish a sinking fund for retiring the bond issue and will make semiannualdeposit that will earn 12%, compounded semiannually. Show the cash flow diagram, andcompute the annual cost for interest and redemption of these bonds
- A Corporation sold an issue of 20-year bonds, having a total face value of 22M for 9,500,000. The bonds bear interest at 16%, payable semiannually. The company wishes to establish a sinking fund for retiring the bond issue and will make semiannual deposit that will earn 12%, compounded semiannually. Compute the annual cost for interest and redemption of these bonds.A corporation sold an issue of 20-year bonds, having a total face value of P10,000,000 for P9,500,000. The bonds bear interest at 16% payable semi annually. The company wishes to establish a sinking fund for retiring the bond issue and will make semi annual deposits that will earn 12%, compounded semi annually. Compute the annual cost for the interest and redemption of these bonds. (draw the cashflow diagram)A Corporation has a 6%, $500,000 bond issue that originally was issued 5 years ago. There are now eight years remaining on the bond issue, and the market interest rate is 10%. Interest is paid semiannually. Calculate the current market value of the bond issue, using present value tables. Please label all work.
- A corporation issues 100 sinking fund bonds of P1,000 face value, redeemable at par in 15 years, with interest payable semi-annually at 4% per annum. The sinking fund earns interest at the rate of 3.5% compounded annually and the contribution to be made twice a year. Calculate the total periodic disbursement of the corporation for these bonds, exclusive of legal and administrative expenses. 4,563 2,000 4,664 2,563 3,685 2,664ABC Corporation has decided to sell ₱1000 bonds which will pay semiannual dividends of ₱20 (2% per period) and will mature in 5 years. The bonds are sold at ₱830, but after brokers' fees and other expenses the company ends up receiving ₱760. What is the company's cost of the capital raised through the sale of these bonds?On March 31, 2020, a calendar-year corporation sold 8% bonds with a face value of $6,000,000. These bonds mature in five years, and interest is paid annually on March 31. The bonds were sold for $5,536,000 to yield 10%. Using the effective interest method of computing interest, how much should be charged to interest expense in 2020?
- On January 1, 2022, Nine Company sold 12% bonds with a face value of P500,000. The bonds mature in five years, and interest is paid semiannually on June 30 and December 31. The bonds were sold for P538,500 to yield 10%. Nine uses the effective interest method of amortization. What is the interest expense for 2022?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.E Co. has incurred $10,000 in costs to issue bonds. The costs are fees paid to a transfer agent, commission on the sale of bonds, and other related fees and expenses. How should these costs be deducted for tax purposes? Question 10 options: Deduct $10,000 over a two-year period, claiming $5,000 per year. Deduct $10,000 over a five-year period, claiming $2,000 per year. Claim $10,000 once all the bonds are sold. Claim $10,000 as an expense once the bonds mature. B Co. plans to raise $200,000 for an expansion project through fixed dividend preferred shares at 9%. B's tax rate is 27%. How much corporate income will B require to service the cost of the expansion? Question 7 options: $0 $18,000 $24,658 $4,860