Hambelton Ltd. issued $5,000,000 of 5% bonds payable on 1 September 20X9 to yield 4%. Interest on the bonds is paid semi-annually and is payable each 28 February and 31 August. The bonds were dated 1 March 20X8, and had an original term of five years. The accounting period ends on 31 December. The effective-interest method is used. (PV of $1, PVA of $1, and PVAD of $1) (Use appropriate factor(s) from the tables provided.) ......... Required: 1. Determine the price at which the bonds were issued. (Round time value factor to 5 decimal places. Do not round intermediate calculations. Round your final answer to the nearest whole dollar amount.) Answer is complete but not entirely correct. Price of Bond $ 5,224,565 X 2. Prepare a bond amortization table for the life of the bond. (Round time value factor to 5 decimal places. Do not round intermediate calculations. Round your final answers to the nearest whole dollar amount. Leave no cells blank - be certain to enter "O" wherever required.) Answer is complete but not entirely correct. Net Bond Liability Interest Premium Unamortized Premium Interest Date Payment Expense Amortization 2$ 224,573 X $ 5,224,573 X 204,065 8 183,146 X 161,809 X Opening $ 125,000 O S 104,491 X S 20,509 X 5,204,065 X 5,183,146 X 1 125,000 104,081 8 20,919 X 21,337 X 103,663 X 103,236 X 102,801 X 125,000 O 5,161,809 X 21,764 X 125,000 O 125,000 O 140,045 X 117,846 X 5,140,045 X 5,117,846 X 4 22,199 X 125,000 O 102,357 X 22,643 X 95,203 X 5,095,203 X 5,072,107 X 7 125,000 101,904 X 23,096 X 72,107 X
Hambelton Ltd. issued $5,000,000 of 5% bonds payable on 1 September 20X9 to yield 4%. Interest on the bonds is paid semi-annually and is payable each 28 February and 31 August. The bonds were dated 1 March 20X8, and had an original term of five years. The accounting period ends on 31 December. The effective-interest method is used. (PV of $1, PVA of $1, and PVAD of $1) (Use appropriate factor(s) from the tables provided.) ......... Required: 1. Determine the price at which the bonds were issued. (Round time value factor to 5 decimal places. Do not round intermediate calculations. Round your final answer to the nearest whole dollar amount.) Answer is complete but not entirely correct. Price of Bond $ 5,224,565 X 2. Prepare a bond amortization table for the life of the bond. (Round time value factor to 5 decimal places. Do not round intermediate calculations. Round your final answers to the nearest whole dollar amount. Leave no cells blank - be certain to enter "O" wherever required.) Answer is complete but not entirely correct. Net Bond Liability Interest Premium Unamortized Premium Interest Date Payment Expense Amortization 2$ 224,573 X $ 5,224,573 X 204,065 8 183,146 X 161,809 X Opening $ 125,000 O S 104,491 X S 20,509 X 5,204,065 X 5,183,146 X 1 125,000 104,081 8 20,919 X 21,337 X 103,663 X 103,236 X 102,801 X 125,000 O 5,161,809 X 21,764 X 125,000 O 125,000 O 140,045 X 117,846 X 5,140,045 X 5,117,846 X 4 22,199 X 125,000 O 102,357 X 22,643 X 95,203 X 5,095,203 X 5,072,107 X 7 125,000 101,904 X 23,096 X 72,107 X
Hambelton Ltd. issued $5,000,000 of 5% bonds payable on 1 September 20X9 to yield 4%. Interest on the bonds is paid semi-annually and is payable each 28 February and 31 August. The bonds were dated 1 March 20X8, and had an original term of five years. The accounting period ends on 31 December. The effective-interest method is used. (PV of $1, PVA of $1, and PVAD of $1) (Use appropriate factor(s) from the tables provided.) ......... Required: 1. Determine the price at which the bonds were issued. (Round time value factor to 5 decimal places. Do not round intermediate calculations. Round your final answer to the nearest whole dollar amount.) Answer is complete but not entirely correct. Price of Bond $ 5,224,565 X 2. Prepare a bond amortization table for the life of the bond. (Round time value factor to 5 decimal places. Do not round intermediate calculations. Round your final answers to the nearest whole dollar amount. Leave no cells blank - be certain to enter "O" wherever required.) Answer is complete but not entirely correct. Net Bond Liability Interest Premium Unamortized Premium Interest Date Payment Expense Amortization 2$ 224,573 X $ 5,224,573 X 204,065 8 183,146 X 161,809 X Opening $ 125,000 O S 104,491 X S 20,509 X 5,204,065 X 5,183,146 X 1 125,000 104,081 8 20,919 X 21,337 X 103,663 X 103,236 X 102,801 X 125,000 O 5,161,809 X 21,764 X 125,000 O 125,000 O 140,045 X 117,846 X 5,140,045 X 5,117,846 X 4 22,199 X 125,000 O 102,357 X 22,643 X 95,203 X 5,095,203 X 5,072,107 X 7 125,000 101,904 X 23,096 X 72,107 X
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