Agee Technology, Inc., issued 9% bonds, dated January 1, with a face amount of $400 million on July 1, 2021, at a price of $380 million. For bonds of similar risk and maturity, the market yield is 10%. Interest is paid semiannually on June 30 and December 31. Prepare the journal entry to record interest at the effective interest rate at December 31. What would be the amount(s) related to the bonds that Agee would report in its statement of cash flows for the year ended December 31, 2021, if it uses the direct method?

Q: On January 1, 2018, Methodical Manufacturing issued 100 bonds, each with a face value of $1,000, a…

A: The bonds are issued at premium when the market interest is lower than the stated rate of bonds.

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A: 1.

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A: market value of bond= present value of future payments@YTM

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A: Requirement 1:   Compute the amount of liability.

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A: An amortization bond schedule is that in which the yearly principal amount is reduced with the…

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A: Journal is the primary book where transactions are originally recorded. Further, a journal entry is…

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A:

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

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A: An amortization bond is one in which the principal (face value) on the loan is paid regularly,…

Q: what will be the issuance price (approximate) of the bonds?

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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: (a) Prepare the journal entry at the date of the bond issuance. (Round answer to 0 decimal places,…

A: Introduction: The effective interest technique is a standard for amortizing or discounting bonds.…

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A: Solution: Bond Amortization Schedule (Partial) Period Cash Paid Interest Expense Discoount…

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A: We have the following information of the Gorman Group: 9% $860,000 bonds issued for $945,110…

Q: On January 1 2017, Aumont Company sold 12% bonds having a maturity value of $500,000 for…

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Q: On January 1, 2021, Ivanhoe Ltd. issued bonds with a maturity value of $7,900,000 when the market…

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

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A: 1. Period Changes during the period     Ending bond liability balances       Interest expense…

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A: Issue Price of the bonds = Present value of principal + Present value of interest payments = face…

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

A:

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A: No. Date Account Titles and Explanations Debit Credit 1. February 1, 2021 Cost of…

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A: Bond is a financial instrument to raise funds. The company issues bonds to raise an amount of money…

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A: Please see Step 2 for required information.

Q: Kingbird Inc. has issued three types of debt on January 1, 2020, the start of the company's fiscal…

A:

Q: On January 1, 2018, Surreal Manufacturing issued 560 bonds, each with a face value of $1,000, a…

A: Cash Interest=Face Value×Interest rate=$560,000×3%=$16,800

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A: Yield to maturity- It is the internal rate of return required for the present value of all the…

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A: The bonds are issued at discount when the coupon rate of bonds is lower than the stated rate of…

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

A: Journal Entries at the time of issuance of bonds: Date    Account title Debit Credit July 1.…

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A: Bonds are the liabilities to pay interest periodically and principal amount on maturity. They are…

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

Q: Prepare the journal entry to record the interest payment and the amortization for 2022

A: Given that: On January 1, 2020, Swifty Company sold 11% bonds having a maturity value of $700,000…

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A: Solution 1:             Period Changes during the period Ending bond liability balances Interest…

Q: On January 1, 2018, Methodical Manufacturing issued 100 bonds, each with a face value of $1,000, a…

A: Journal entry is a primary entry that records the financial transactions initially.

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A: As per the amortized the bond is recognized at the present value of bond and the effective interest…

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A: Formula: Net amount received from the issuance of the bonds = Issue value of the bonds + Accrued…

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A: 1.

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

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A: Since you have posted a question with multiple sub parts, we will solve first three Sub parts for…

Q: On January 1 2017, Aumont Company sold 12% bonds having a maturity value of $500,000 for…

A: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question and…

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A: Interest Expense = Opening Carrying Amount * 10% Premium Amortized = Cash Paid - Interest Expense