2. Find the coupon rate IAL MGMT 7120Question 2- HW6/7-ConnectChannel content- YouTube StudA ezto.mheducation.com/ext/map/index.html?_con%3con&external browser%-D0&launchUrl-htSavedBig Canyon Enterprises has bonds on the market making annual payments, with 15 yearsto maturity, a par value of $1,000, and a price of $971. At this price, the bonds yield 8.3percent.What must the coupon rate be on the bonds? (Do not round intermediate calculationsand enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)Coupon rate%< Prev2 of 8Nepe here tO search

Coupon rate is defined as the rate of the interest which paid to the bond holders through the bond…

Big Canyon Enterprises has bonds on the market making annual payments, with 15 ye to maturity, a par value of $1,000, and a price of $971. At this price, the bonds yield percent What must the coupon rate be on the bonds? (Do not round intermediate calculatic and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Coupon rate

Big Canyon Enterprises has bonds on the market making annual payments, with 15 ye to maturity, a par value of $1,000, and a price of $971. At this price, the bonds yield percent What must the coupon rate be on the bonds? (Do not round intermediate calculatic and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Coupon rate

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter14: Financing Liabilities: Bonds And Long-term Notes Payable

Section: Chapter Questions

Problem 5P: Bats Corporation issued 800,000 of 12% face value bonds for 851,705.70. The bonds were dated and...

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Bats Corporation issued 800,000 of 12% face value bonds for 851,705.70. The bonds were dated and issued on April 1, 2019, are due March 31, 2023, and pay interest semiannually on September 30 and March 31. Bats sold the bonds to yield 10%. Required: 1. Prepare a bond interest expense and premium amortization schedule using the straight-line method. 2. Prepare a bond interest expense and premium amortization schedule using the effective interest method. 3. Prepare any adjusting entries for the end of the fiscal year, December 31, 2019, using the: a. straight-line method of amortization b. effective interest method of amortization 4. Assume the company retires the bonds on June 30, 2020, at 103 plus accrued interest. Prepare the journal entries to record the bond retirement using the: a. straight-line method of amortization b. effective interest method of amortization
https://www.bartleby.com/questions-and-answers/on-january-1-2019-canglon-inc.-issues-10percent-5year-bonds-with-a-face-value-of-dollar150000-when-t/6f595d41-e2c8-47bc-8a78-adff0af9b34f In step 2 of the above solution, where did the $45,000 come from? I can't figure out where it came from so the solution doesn't make any sense.
Kk.215. Gus Limited issued $32 million 7.5 percent, 5 year bonds on October 1, 2022. The market rate of interest on the date of the issue was 8 percent. Interest is payable semi-annually on April 1 and October 1. The company’s year-end is December 31. Required: a. Prepare journal entries to record all transactions during the first year the bonds are outstanding. The company uses the straight-line method of amortizations. b. In good presentation style, indicate how the bond obligation would be shown on the company’s year-end statement of financial position. c. How much interest expense is shown on the 2022 year end income statement? d. How much interest expense will be shown on the 2023 year end income statement?
Ma3. Dino Company purchased a bond with a face value of $100,000 with a stated interest rate of 6% that pays interest semi-annually on June 30 and December 31. The bond was purchased on January 1, 20X1 and matures in 5 years. It was purchased at 91.889 when interest rates in the market were 8%. Record journal entries that the company would record during 20X1 if the company accounts for this investment under the amortized cost model. Indicate the amounts that would appear on the year-end statement of financial position with regard to this investment. Assume that market interest rate fell to 2% by January 1, 20X3. On that date the bond investment was sold. Record the journal entry that would be made at that time.
Durable Co.’s December 30, 20X0, balance sheet contained the following items in the long-term liabilities section: Unsecured 9.375% registered bonds (P25,000 maturing annually beginning in 20x4) ₱275,000 11.5% convertible bonds, callable beginning in 20x9, due 2010 125,000 Secured 9.875% guarantee security bonds, due 2x10 ₱250,000 10.0% commodity backed bonds (P50,000 maturing annually beginning in 20x5) 200,000 What are the total amounts of serial bonds and debenture bonds?
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McWherter Instruments sold $400 million of 8% bonds, dated January 1, on January 1, 2018. The bonds matureon December 31, 2037 (20 years). For bonds of similar risk and maturity, the market yield was 10%. Interest ispaid semiannually on June 30 and December 31. Blanton Technologies, Inc., purchased $400,000 of the bonds asa long-term investment.Required:1. Determine the price of the bonds issued on January 1, 2018.2. Prepare the journal entries to record (a) their issuance by McWherter and (b) Blanton’s investment on January1, 2018.3. Prepare the journal entries by (a) McWherter and (b) Blanton to record interest on June 30, 2018 (at the effective rate).4. Prepare the journal entries by (a) McWherter and (b) Blanton to record interest on December 31, 2018 (at theeffective rate).
Auerbach Inc. issued 8% bonds on October 1, 2021. The bonds have a maturity date of September 30, 2031 and a face value of $300 million. The bonds pay interest each March 31 and September 30, beginning March 31, 2022. The effective interest rate established by the market was 10%. How much cash interest does Auerbach pay on March 31, 2022? (Round your answer to 2 decimal places.) Top of Form Multiple Choice $24.00 million. $12.00 million. $30.00 million. $15.00 million.
January 1, 2021, Marceline the Vampire Queen Co. purchased P1,000,000 10% bonds classified atamortized cost. The bonds were purchased to yield 12%. Interest is payable annually every December 31.The bonds mature on December 31, 2025. On December 31, 2021, the bonds were selling at 99. OnJanuary 2, 2023, Marceline the Vampire Queen Co. sold P500,000 face value bonds at 101. The bondswere selling at 103 on December 31, 2023. Based on the above and the result of your audit, answer thefollowing: Present value of 1 for 3 periods at 12%: 0.635518078 Present value of an annuity of 1 for 10 periods at 12%: 3.037349347 3. How much is the gain/loss on sale on January 2, 2023?
January 1, 2021, Marceline the Vampire Queen Co. purchased P1,000,000 10% bonds classified atamortized cost. The bonds were purchased to yield 12%. Interest is payable annually every December 31.The bonds mature on December 31, 2025. On December 31, 2021, the bonds were selling at 99. OnJanuary 2, 2023, Marceline the Vampire Queen Co. sold P500,000 face value bonds at 101. The bondswere selling at 103 on December 31, 2023. Based on the above and the result of your audit, answer thefollowing: Present value of 1 for 3 periods at 12%: 0.635518078 Present value of an annuity of 1 for 10 periods at 12%: 3.037349347 3. How much is the gain/loss on sale on January 2, 2023? 4. How much is the interest income on December 31, 2023? 5. How much is the discount amortization on December 31, 2022?
January 1, 2021, Marceline the Vampire Queen Co. purchased P1,000,000 10% bonds classified atamortized cost. The bonds were purchased to yield 12%. Interest is payable annually every December 31.The bonds mature on December 31, 2025. On December 31, 2021, the bonds were selling at 99. OnJanuary 2, 2023, Marceline the Vampire Queen Co. sold P500,000 face value bonds at 101. The bondswere selling at 103 on December 31, 2023. Based on the above and the result of your audit, answer thefollowing: Present value of 1 for 3 periods at 12%: 0.635518078 Present value of an annuity of 1 for 10 periods at 12%: 3.037349347 2. The carrying amount of the investment in bonds on December 31, 2021 is ?
January 1, 2021, Marceline the Vampire Queen Co. purchased P1,000,000 10% bonds classified atamortized cost. The bonds were purchased to yield 12%. Interest is payable annually every December 31.The bonds mature on December 31, 2025. On December 31, 2021, the bonds were selling at 99. OnJanuary 2, 2023, Marceline the Vampire Queen Co. sold P500,000 face value bonds at 101. The bondswere selling at 103 on December 31, 2023. Based on the above and the result of your audit, answer thefollowing: Present value of 1 for 3 periods at 12%: 0.635518078 Present value of an annuity of 1 for 10 periods at 12%: 3.037349347 3. How much is the gain/loss on sale on January 2, 2023? 4. How much is the interest income on December 31, 2023? 5. How much is the discount amortization on December 31, 2022? Date Nominal Interest Effective Interest Amortization Carrying Amount 1/1/2021 12/31/2021 12/31/2022 1/2/2023 12/31/2023 12/31/2024…