A Corporation sold an issue of 15-year bonds, having a total face value of ₱12,000,000 for ₱11,000,000. The bonds bear interest at 15%, 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. Show the cash flow diagram, and compute the annual cost for interest and redemption of these bonds

Q: 1. A corporation sold an issue of 20-year bonds, having a total face value of P10,000,000 for…

A: Since you have asked multiple questions, we will solve the first question for you. If you want any…

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

A: Solution: A bond is a financial debt instrument so it requires its issuing company to pay periodic…

Q: ACCT 102

A: Cash received in first year means cash received from the sale of bonds. Cash paid in the first year…

Q: On June 30, 2006, Naruto Company had outstanding 9%, P5,000,000 face value bonds maturing on June…

A: Bond: Bond is the financial security which allows the investors to have the fixed interest income…

Q: On the first day of its fiscal year, J Co. issued $1,000,000 of five-year, 8% bonds to finance the…

A: Journal Entry: Journal entry is the act of keeping records of transactions in an accounting journal.…

Q: A corporation issues for cash $9,000,000 of 8%, 30-year bonds, interest payable semiannually. The…

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

Q: rporation sold an issue of 20 year bonds, having a total face value of P10 Million pesos for P9.5…

A: Bond carry the annual interest payments and redemption value on the maturity of bond. There are…

Q: Feherty, Inc., accounts for its investments under IFRS No. 9 and purchased the following investments…

A: 1. Feherty Inc. bought 200 bonds of Donald Company, from the 200 bonds, 80 were held as amortized…

Q: Quail Company had an investment in bonds purchased at par for P8,000,000. On December 31, 2018, the…

A: Bondholders: Bond holders are the investors who acquires various bond of a company and after lapse…

Q: Hassan Mustafa realized that when the bonds mature on January 20, 2041, there must be $5,200,000…

A: Sinking fund is type of account in which periodic payment is paid in each period and interest is…

Q: Agee Technology, Inc., issued 9% bonds, dated January 1, with a face amount of $1,400 million on…

A: Bonds refer to the borrowing security issued by the company to raise funds from the market by making…

Q: If Intervale Railway invests $100,000 in 5% bonds at face value that the company intends to hold…

A: Given is: Intervale Railway invests $100,000 in 5% bonds at face value that the company intends to…

Q: A company isued bonds with a face value of Php 50,000 redeemable at par at the ends of 15 years to…

A: A bond is a type of financial instrument but a debt instrument through the issue of bonds by the…

Q: On July 1, 2012, Beta Inc. issues $3,000,000 face value seven-year bonds with annual interest…

A: Cash Flow at the time of maturity = $3000000 Interest (Annuity) annually = $150000 Table…

Q: A corporation issues for cash $8,000,000 of 20-year, 8% bonds, interest payable semiannually. The…

A: Face value=8000000

Q: On the first day of the fiscal year, a company issues a $5,000,000, 7%, five-year bond that pays…

A:

Q: On January 1, 2022, Balagtas Corp. issued 5-year bonds with face amount of P5,000,000 at 118.0. The…

A: >Bonds Payable are the source of finance for the companies.   >The bondholders are…

Q: On January 1, 20x1, Sina Co. acquired 10%, ₱4,000,000 bonds for ₱3,807,853. The principal is due on…

A:

Q: Petron needs to raise $50,000 for capital expansion of its plant. The company issues ten year bonds…

A: Face Value of total bond issue = 50,000 Quarterly Compounding, Coupon = Coupon Rate / 4 * Face Value…

Q: A corporation issues for cash $1,000,000 of 10%, 20-year bonds, interest payable annually, at a time…

A: Bond discount or premium: if a bond issued value is higher than its original value is called Premium…

Q: Cronan, Inc., sells $1,000,000 general obligation bonds for 98. The interest rate on the bonds,…

A: a.

Q: pany sold a P9,500,000 issue of 20-year bonds with a total face value of P10,000,000. The bonds pay…

A: For payment of bonds there is need to create the sinking fund required semiannually so that bonds…

Q: Which of the following statements is true?

A: Answer:   Option a.

Q: A corporation sold an issue of 20-year bonds, having a total face value of P10,000,000 for…

A: The cash flow diagram is the representation of the company’s cash flow graphically. The minus sign…

Q: On the first day of the fiscal year, a company issues a $3,500,000, 6%, five-year bond that pays…

A: Formula used: Discount on bonds payable = Face value of bond - Cash received

Q: On March 31, 2020, a calendar-year corporation sold 8% bonds with a face value of $6,000,000. These…

A: Discount on issue can be calculated by subtracting the book value of bonds from bonds payable value.…

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

A:

Q: On July 1, 2012, Insta Inc. issues $3,000,000 face value seven-year bonds with annual interest…

A: >Bonds Payable issued are the source of finance for the businesses.>The investors of these…

Q: Pinder Co. produces and sells high-quality video equipment. To finance its operations, Pinder Co.…

A:

Q: City Slicker Corporation pays $55,000 into a bond sinking fund each year for the future redemption…

A: Sinking Fund- It refers to the separate fund which company uses to create to reduce the outstanding…

Q: Crosby, Inc., sells $1,000,000 general obligation bonds for 98. The interest rate on the bonds, paid…

A: Since you have asked multiple question, we will solve the first question for you. If you want any…

Q: deposit

A: The government and the corporation raise finance by issuing bonds. The borrower is obligated to pay…

Q: Red & Blue Company sold bonds at 97 on an interest payment date for $500,000. Assuming thebonds…

A: Firstly we shall calculate the issue price of the bonds. Then, we shall calculate the discount on…

Q: On December 31, 2017, ABC Company had P1,000,000 of short term notes payable due February 7, 2018.…

A:

Q: On January 1, Year 1, Tina Company purchased bonds with face value of P4,000,000 for P4,206,000. The…

A: As per IFRS 9, Financial instruments, if any financial asset is held to collect the contractual cash…

Q: A Corporation sold an issue of 15-year bonds, having a total face value of P12,000,000 for…

A: Sinking Fund - A Sinking fund is a type of fund that is created and set up purposely for repaying…

Q: The records of Montana Corporation on January 1, 2020 show the following accounts: Premium on bonds…

A:

Q: A Corporation sold an issue of 20-year bonds, having a total face value of 22M for 9,500,000. The…

A: A bond is a type of debt instrument issued by companies in order to raise funds. The issuer pays…

Q: ABC Corporation was able to issue 20-year P10,000,000-face value bonds with interest of 8% per…

A: The effective cost of a newly issued  quarterly bond Y/4 = (I + (F - NP)/n)/((F + NP)/2) Where, F =…

Q: What total amount should be reported as “cash”?

A: According to IAS 7  Cash and cash equivalents comprise of Cash, Demand deposits and other…

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

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

Q: A company establishes a sinking fund to discharge a debt of $750,000 due in 8 years by making equal…

A: Future value of annuity: It is value at a future date of a series of recurring payments at a…

Q: Marin Enterprises issued 4%, 8-year, $2,000,000 par value bonds that pay interest semiannually on…

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

Q: On January 1, 20x1, Sina Co. acquired 10%, ₱4,000,000 bonds for ₱3,807,853. The principal is due on…

A: In this question amount of coupon is to be find out. It can be find out by multiplying the coupon…

Q: On January 1, Jim Shorts Corporation issued bonds for $580 million. This bond issue was originally…

A: As per the indirect method of preparation of statement of cash flows, net income is adjusted for…

Q: a corporation sold an issue of 15 years bonds having a total face value of 12,000,000 for…

A: Face Value = 12,000,000 Coupon Rate = 15%  Interest Rate = 12%  Semi-annual coupon rate  = Coupon…

Q: If Intervale Railway invests $100,000 in 5% bonds at face value that the company intends to hold…

A: Held-to-maturity Debt investments:  Held-to-maturity debt investments are the investments in debt…

Q: Pinder Co. produces and sells high-quality video equipment. To finance its operations, Pinder issued…

A: Present value of the bond is calculated by adding the Present value of the amount to be paid on…

Q: A Corporation has a 6%, $500,000 bond issue that originally was issued 5 years ago.  There are now…

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