On January 1, 2020 HH Company wanted to purchase a 2,000 10-year bonds with a denomination of P1,000 and a stated interest rate of 8% payable annually on December 31 of each year. The required rate of return is 10%. Present value factors are as follows: Present Value of 1 for 10 periods at 10% …………….. 0.3855 Present Value of an ordinary annuity of 1 for 10 periods at 10% ………… 6.145 What is the expected price of the bonds?

Q: On January 1,2020, ABC Corporation issued a 5-year, 10%, 1,000 of the P 5,000 face value bonds with…

A: Annual interest amount = Face value of Bonds x rate of interest x no. of months / 12 = P5,000,000 x…

Q: On January 1, 2021, White Water issues $600,000 of 7% bonds, due in 10 years, with interest payable…

A: Date (A) Interest payment(B)7%* face value  interest expenses(C) carrying value*8% Amortisation…

Q: On January 1, 2021, Mirada, Inc. issued five-year bonds with a face value of $100,000 and an annual…

A: Carrying cost is value of bonds which is shown in books of accounts

Q: On January 1, 2020, Marimar Company issued 10,000 of its 12%, P1,000 face value 5-year bonds at 105.…

A: Step 1: Introduction Carrying Value of Bond:  The carrying values of a bond represent the combined…

Q: On January 1, 2018, Ithaca Corp. purchases Cortland Inc. bonds that have a face value of $150,000.…

A: 1. Calculate the price Ithaca would have paid for the Cortland bonds on January 1, 2018 prepare a…

Q: On April 1, 2020, BANANA Company purchased 9% bonds with a face value of ₱4,000,000 for ₱3,756,000…

A: Interest refers to the cost of money borrowed from a lender. It can be simple or compound. It is…

Q: On March 1, 2021, BabyM company issued a four-year, P3,000,000 face value, 11% term bonds for…

A: Bonds issued at Premium: When a bond is issued at a premium, that means that the bond is sold for an…

Q: On January 1, 2020, when the market rate for bonds interest was 12%, Black Corporation issued P10…

A: Amortization of bond: The process of allocation and reduction of the discount or premium on bonds…

Q: On Mar. 1, 2022, Top Company issued P 700,000 of 10% bonds to yield 8%. Interest is payable…

A: Issue price of bonds will be present value of maturity & interest annuity at yield rate.

Q: Huskey Mining Corporation issued bonds with a par value of $90,000 on January 1, 2020. The annual…

A: Discount on bonds payable is difference of par value of bond and issue price of bonds.

Q: On December 31, 2020, Dome Company issued P 4,000,000, 8% serial bonds, to be repaid in the amount…

A: The interest method of amortization of discount is the method used to amortize the discount or…

Q: At the beginning of January 2021, Luminiscence Company purchased ten-year bonds with a face amoun of…

A: The Purchase price of the bond = Present Value of Interest  + Present value of Bond at Maturity.…

Q: On January 1, 2016, Pharaoh Company issued 3-year bonds with a face value of P1,200,000 and stated…

A: Bonds: It is also known as a fixed-income security, it is a debt instrument created for the purpose…

Q: At the beginning of 2020. Wallace Corporation issued 10% bonds with a face value of P900,000. These…

A: Interest expense is the outlay incurred by an entity due to borrowing of notes or issue of bonds or…

Q: On January 1, 2020, Garner Hot Rods issued $2,000,000 of 6%, 10-year bonds. Interest is payable…

A: Compute coupon payment for six months period as shown below:

Q: On October 1, 2020, Eastern Timber Inc. has available for issue $700,000 bonds due in four years.…

A: Issue Price of Bond: On the maturity date of a bond, the bond will be paid off by the bond issuer,…

Q: On January 1, 2020, University Theatres issued $495,000 face value of bonds. The stated rate is 8%,…

A: Formula: Present value of single amount: PV = 1 / ( 1 + R )N   Future value of single amount: FV = 1…

Q: On December 31, 2020, Whitfield Corp. issued $ 400,000 10% bonds, due on December 31, 2025. Interest…

A: Maturity period = December 31, 2020 to December 31, 2025 = 5 years Semi annual period = 5 years x 2…

Q: On January 1, 2009, Delta Company issued its P10,000,000 face amount, 10% bonds to yield 8% per…

A: The carrying value of Bond Liability on January 1, 2009 will be the issue price of Bonds.    The…

Q: On January 1, 2022, Patrick Company purchased serial bonds with face amount of P3,000,000 and stated…

A: Purchase price of serial bond = Present value of annual interest  payments  discounted at Yeild per…

Q: On January 1, 2022, Smith Corp. issued 5-year 12% bonds with face amount of P5,000,000 at a price of…

A: Retirement of the bond is the process of repayment of the amount borrowed by issuing the bond.

Q: On January 1, 2020, Sabond issued a 5-year 12%, P10,000,000. Interest is payable annually every…

A: Present Value of Bond = Present Value of Coupon Payments + Present Value of Redemption Value Present…

Q: A company is issuing $330,000 worth of 5-year bonds on August 14, 2020, bearing an interest rate of…

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

Q: On January 1, 2021, BBB Company issued 10% bonds payable dated January 1, 2021 with a face amount of…

A: Present Value of Bond = PV of Coupon Payments + PV of Redemption Value PV of Coupon Payments =…

Q: On January 1, 2021, White Water issues $600,000 of 7% bonds, due in 10 years, with interest payable…

A: Bonds: Bonds are long-term promissory notes that are issued by a company while borrowing money from…

Q: On January 1,2020, ABC Corporation issued a 5-year, 10%, 1,000 of the P 5,000 face value bonds with…

A: Annual interest payment = Face value of the bonds x rate of interest x no. of months /12 =…

Q: On June 1, 2019, Bramble Company sold $3,120,000 in long-term bonds for $2,736,600. The bonds will…

A: Amortization of bond: The process of allocation and reduction of the discount or premium on bonds to…

Q: On July 1, 2022, Sonia Company purchased five-year bonds with face amount of P8,000,000 and stated…

A: Purchase price of bonds = present value of future interest payments discounted @YTM 4% for each…

Q: On January 1, 2021, EXPERT EFFORT Company purchased serial bonds with face value of P3,000,000 and…

A: Under the amortized cost method, present value of the bond can be calculated by discounting all the…

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: On January 1, 2020, Bonita Industries issued eight-year bonds with a face value of $5950000 and a…

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

Q: A company issues GHS10 million of 6% bonds at a price of GHS100.50 for each GHS100 nominal value…

A: Bond: When the company needs money, the company issues fixed-income security that the investor buys.…

Q: On January 1,2020, ABC Corporation issued a 5-year, 10%, 1,000 of the P 5,000 face value bonds with…

A: Carrying value of the bonds retired as of December 31, 2022 = Present value of principal + Present…

Q: At the beginning of 2020. Wallace Corporation issued 10% bonds with a face value of P900,000. These…

A: This question deals with the calculation of interest expense that needs to record during the year…

Q: On January 1, 2024, Splash City issues $400,000 of 8% bonds, due in 15 years, with interest payable…

A: An amortization schedule is a schedule that shows interest expenses, interest paid and change in…

Q: Mindsetta Music Inc. issued bonds on March 1, 2020, with a par value of $420,000. The bonds mature…

A: Note: Since you have posted a question with multiple sub-parts, we will solve the first three…

Q: n January 1, 2018, a company issued 8% 5-year bonds with a face value of P4,000,000 at an issue…

A: 1) Interest expense in 2020: =4,000,000 x 8% x 612   =160,000 (Intrest will be charged for 6 months…

Q: The following information pertains to San Francisco Company's issuance of bonds on July 1, 2020.…

A: Issue price of bond = Present value of interest payments + Present value of principal amount Number…

Q: Ideal Living Company has 8.5 percent bonds outstanding that are paid semi-annually and has the YTM…

A: A Bond refers to an instrument that represents the loan being made by the investor to the company…

Q: XYZ company issues R$100,000 in bonds dated January 1, 2020, due in five years with 9 percent…

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

Q: On January 1, 2019, Marites Company issue its P10,000,000 face amount, 10% bonds to yield 8% per…

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

Q: On January 1, 2014, Behold Company purchased P5,000,000 face amount bonds with stated 12% interest.…

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

Q: On January 1, 2019,CalderetaCompany purchased 5-year bonds with face value of P8,000,000 and stated…

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

Q: On January 1, 2020, XYZ Co. issued 8-year bonds with a face value of $1,500,000 and a stated…

A: formula for price of bond: price of bond=coupon×1-11+rmm×nrm+par1+rmm×n where, r=rate per period m…

Q: On January 01, 2019, SUNOD NA ANG LEASES LTD. issued 3-year bonds with face value of P5,000,000 at…

A: PV of cash flows=Present value of Future payments(Interest+Face value) @ YTM

Q: On January 1, 2021, Wild Rapids Water Park issues $40.0 million of 8% bonds to finance expansion.…

A: Given in the question is the below information regarding,  Wild Rapids Water Park issues $40.0…

Q: On January 1,2020, ABC Corporation issued a 5-year, 10%, 1,000 of the P 5,000 face value bonds with…

A: Annual interest payment = Face value of the bonds x rate of interest x no. of months /12 =…

Q: 4. At the beginning of 2020. Wallace Corporation issued 10% bonds with a face value of P900,000.…

A: In this question we are require to calculate the interest expense need to record in year 2020 under…