Review the following three bonds payable assumptions:1 (Click the icon to view the bond assumptions.)Journalize issuance of the bond and the first semiannual interest payment under each of the three assumptions. Thecompany amortizes bond premium and discount by the effective-interest amortization method. Explanations are notrequired. (Record debits first, then credits. Exclude explanations from any journal entries. Round your final answers tothe nearest whole dollar.)O More Infosemiannually.1. Ten-year bonds payable with face value of $89,000 and stated interest rate of 14%, paidsemiannually. The market rate of interest is 14% at issuance. The present value of thebonds at issuance is $89,000.2. Same bonds payable as in assumption 1, but the market interest rate is 16%. The presentvalue of the bonds at issuance is $80,301.3. Same bonds payable as in assumption 1, but the market interest rate is 12%. The presentvalue of the bonds at issuance is $99,226.PrintDone

A bond is a fixed pay instrument issued to represents to an advance made by a financial specialist…

Journalize issuance of the bond and the first semiannual interest payment under each of the three assumptions. The company amortizes bond premium and discount by the effective-interest amortization method. Explanations are not required. (Record debits first, then credits. Exclude explanations from any journal entries. Round your final answers te the nearest whole dollar.) O More Info - X semiannual 1. Ten-year bonds payable with face value of $89,000 and stated interest rate of 14%, paid semiannually. The market rate of interest is 14% at issuance. The present value of the bonds at issuance is $89,000. 2. Same bonds payable as in assumption 1, but the market interest rate is 16%. The present value of the bonds at issuance is $80,301. 3. Same bonds payable as in assumption 1, but the market interest rate is 12%. The present value of the bonds at issuance is $99,226.

Journalize issuance of the bond and the first semiannual interest payment under each of the three assumptions. The company amortizes bond premium and discount by the effective-interest amortization method. Explanations are not required. (Record debits first, then credits. Exclude explanations from any journal entries. Round your final answers te the nearest whole dollar.) O More Info - X semiannual 1. Ten-year bonds payable with face value of $89,000 and stated interest rate of 14%, paid semiannually. The market rate of interest is 14% at issuance. The present value of the bonds at issuance is $89,000. 2. Same bonds payable as in assumption 1, but the market interest rate is 16%. The present value of the bonds at issuance is $80,301. 3. Same bonds payable as in assumption 1, but the market interest rate is 12%. The present value of the bonds at issuance is $99,226.

Excel Applications for Accounting Principles

4th Edition

ISBN:9781111581565

Author:Gaylord N. Smith

Publisher:Gaylord N. Smith

Chapter11: Bond Pricing And Amortization (bonds)

Section: Chapter Questions

Problem 3R

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When determining the amount of interest to be paid on a bond, which of the following information is not necessary? a. The length of the interest period, annually or semiannually b. The face rate of interest on the bonds c. The face amount of the bonds d. The selling price of the bonds
To determine if a bond will be issued at a premium, discount, or face value, one must know which of the following pairs of information?a. The face value and the stated interest rate on the datethe bonds were issued.b. The face value and the market interest rate on the datethe bonds were issued.c. The stated interest rate and the market interest rate onthe date the bonds were issued.d. You can’t tell without having more information.
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i need a journal entry to record the purchase of bonds on january 1. i also need a amortization schedule for the bonds please answer within the format by providing formula the detailed workingPlease provide answer in text (Without image)Please provide answer in text (Without image)Please provide answer in text (Without image)
In computing the carrying amount of a bond, unamortized _______ is added to the face value of the bond. If a bond sells at a _____________, an amount more than the face value of the bond is received on the date of issuance. If a bond sells at a ____________, an amount less than the face value of the bond is received on the date of issuance.
Please answer each of the following questions in detail and provide in-text citations in support. Make sure to provide examples for each of the questions below. Please explain the determining factors of the interest rate with examples. Please explain the terms associated with the bonds, namely, corporate bond, municipal bond , treasury bill, par value, coupon rate, coupon payment, time to maturity, prevalent interest rate, market value and yield to maturity (YTM). Explain and provide examples of how variations in the prevalent interest rate affects market value of a bond. Kindly answer all the subparts in a simple language.