On January 1, 2020, Surigao Company issued bonds with face amount of P4,000,000 and stated interest rate of 12%. The interst is payable semiannually on June 30 and December 31. The bonds mature on every Decmebr 31 ata the rate of P2,000,000 per year for 2 years. The prevailing market rate for the bonds is 8%. Present value of 1 at 4% One period                0.9615 Two period                0.9246 Three period              0.8990 Four period                0.8548 Required Compute the market price of the bonds on January 1, 2020. Prepare a table of amortization using the effective interst method. Prepare journal entries for 2020 and 2021.

Q: 21. On January 01, 2019, SUNOD NA ANG LEASES LTD. issued 3- year bonds with face value of P5,000,000…

A: Given: Face value = P5,000,000 Price = 99% Nominal rate = 10% Issue cost = P150,000

Q: Brussels Enterprises Issues bonds at par dated January 12019, that have a \$3,400,000 par value,…

A: Bonds are instrument issued by company acknowledging the debt raised by company . It is a liability…

Q: On February 1, 2018, Strauss-Lombardi issued 9% bonds, dated February 1, with a face amount of…

A: Requirement 1: Date Account title and explanation Debit($) Credit($) February 1, 2018…

Q: On January 1, 2022, the Meade Group issued $8,000,000 of 11% bonds, dated January 1. Interest is…

A: Compute issue price of bonds as follows: Result:

Q: Tano Company issues bonds with a par value of $180,000 on January 1, 2019. The bonds’ annual…

A: Discount on bonds at issuance = Par value of bonds - Issue price of bonds

Q: Brussels Enterprises issues bonds at par dated January 1, 2019, that have a $3,400,000 par value,…

A: When the bonds are issued at par, then there shall be no premium or discount on bonds payable.

Q: On January 1, 2020, Metro Inc. issued a five-year bond with a face value of $700,000. The bond bears…

A: Discount or Premium on Bond Issue: A premium bond has a coupon rate that is greater than the market…

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

A: SOLUTION- BOND  IS A FIXED INSTRUMENT THAT REPRESENT A LOAN MADE BY AN INVESTOR TO A BORROWER…

Q: On December 31, 2020, Plank Corporation issued $800,000, 6%, 5-year bonds for $735,100. The bonds…

A: PREPARATION OF BOND DISCOUNT SCHEDULE

Q: On January 1, 2020, Dennis Company issued its 9% P9,000,000 face value bonds, which matures on…

A: One of the sources used by the business entity to manage the fund's requirement is to raise the…

Q: On January 1, 2020, Burger Company issued P2,000,000 of 10-year, 8% bonds at par. The bonds, dated…

A: Bonds carrying amount at January 2, 2020 = Par value of bonds - Bond issue costs

Q: On January 1, 2020, Swifty Corporation issued eight-year bonds with a face value of $5910000 and a…

A: Half yearly rate=Annual rate2=6%2=3%Number of Half years=Total years×2=8×2=16 periods

Q: On January 1, 2022, Broncos Universal issued 12% bonds dated January 1, 2022, with a face amount of…

A: Bond Price :— It is sum of present value of periodic interest payment and face value amount.    If…

Q: Quatro Co. issues bonds dated January 1, 2019, with a par value of $720,000. The bonds’ annual…

A: Given that: Par value of bonds = $720,000 Issue price of bonds $757,732

Q: On January 1, 2020, Burger Company issued P2,000,000 of 10-year, 8% bonds at par. The bonds, dated…

A: Bonds carrying amount at January 2, 2020 = Var value of bonds - Bond issue costs

Q: On January 01, 2019, IDAMAY KO NA RIN PO SI PAPA CO. issued 10-year bonds with a face amount of P1…

A: Solution Chart Values are based on:           n=  10   i=  10%   Cash Flow Table Value *…

Q: On July 1, 2019, Fewa Company issued P4,000,000 of 16% bonds to yield 14%. Interest is payable…

A:

Q: On January 2, 2022, the Peace Company issued P2,000,000 of 9% convertible bonds at par. The bonds…

A: “Since you have posted a question with many sub-parts, we will solve three sub-parts for you. To get…

Q: On July 1, 2021, Jasper Inc. issued $2,000,000, 4% bonds that will mature in five years.  Interest…

A: Bonds payable: It is long-term liability for a business. It is a debt raised for using in the…

Q: On January 1, 2020, ABC Company issued its 9%, P2 million bonds, which mature on January 2030. The…

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

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

A: 1. Workings: 600,000*7%*6/12= 21,000 Interest paid= 6% interest on carrying value for 6 months…

Q: On February 1, 2020, Fox Corporation issued 9% bonds dated February 1, 2013, with a face amount of…

A: Bonds Bond is a long-term financial instrument issued by a company for which the company pays…

Q: Determine the selling price of the bonds.

A: The selling price of bond is calculated as present value of coupon amount which is based on coupon…

Q: Quatro Co. issues bonds dated January 1, 2019, with a par value of $730,000. The bonds’ annual…

A: Formula: Premium on Bonds = Sell price - PAR value Deduction of PAR value from Sell price of bonds…

Q: On January 1, 2021, Battersea issued $200,000 of 8% bonds, dated January 1. Interest is payable…

A: Issue price of bonds = Present value of interest + Present value of maturity   PV of annuity of $1…

Q: On January 1, 2020, Lolo Company issued its 9% P9,000,000 face value bonds, which matures on January…

A:

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

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

Q: On January 1, 2020, ABC Company issued its 9%, P2 million bonds, which mature on January 1, 2030.…

A: Interest expense = Carrying value on Jan 1, 2020*10% Interest payment = Face value*9%

Q: On January 1,2020, Pharaoh Company issued 3-year bonds with a face value of P1,200,000 and stated…

A: The present value of bond is calculated on the annual cash outflows from the bond interest and…

Q: Contis Company issued bonds with face amount of P6,000,000 on January 1, 2021. The nominal rate of…

A: Issue price of bond will be the present value of future cash flows , discounted using market…

Q: On January 1, 2018, Oman Cables Industry (SAOG) issued 12% bonds dated January 1, 2018, with a…

A: The present value represents the present value of the bond that will be redeemed in the future.…

Q: On December 31, 2022, Miriam Company issued serial bonds with face value of P4,000,000 and a stated…

A: The issue price of bonds will be equal to the present value of all future cash inflows.   The…

Q: The Bradford Company issued 10% bonds, dated January 1, with a face amount of $94 million on January…

A: 1. Given, Face amount = $94000000 n = 10 x 2 = 20 i = 10%/2 = 5% Market yield = 12%/2 = 6% Cash…

Q: SweetFish Corp. issued bonds with a par value of $920,000 and a five-year life on May 1, 2020. The…

A: Formulas Used:- Cash Interest Paid = @5.75% of 920,000 Period Interest Expenses = @6% of Carrying…

Q: Brussels Enterprises issues bonds at par dated January 1, 2021, that have a $3,400,000 par value,…

A: Bonds means an instrument issued by company acknowledging the debt due from company to bond holder.…

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: On January 1, 2019, Bota Company issued a 3-year bonds with a face value of P5,000,000 at 99. The…

A: The yield is the rate at which the present value of the coupons and the redemption amount is equal…

Q: On January 1, 2020, ABC Company issued its 9%, P2 million bonds, which mature on January 1, 2030.…

A: Date  Account Titles & Explanation   Debit   Credit  January 1, 2020  Cash   P18,78,000…

Q: On June 30, 2024, LN Bean issued $25 million of its 8% bonds for $23 million. The bonds were priced…

A: Interest expense is the amount of charge which is paid by the person who uses the funds. In this…

Q: On January 1, 2020, Raybond issued its 10-year, 7% P1,000,000 convertible bonds at 122. Interest is…

A: Accrued interest = Face value of bonds x rate of interest x no. of months / 12 months where, Rate of…

Q: On January 1, 2019, Whitmore Corp Issues $600,000 of 9% 15 year bonds that annually on December 31st…

A: Bonds are considered a financial instrument used to raise finance for the organization. It is also…

Q: On July 1, 2019, Fewa Company issued P4,000,000 of 16% bonds to yield 14%. Interest is payable…

A: Solution : Given: Face value        =4000000 Coupon rate    =16% Interest payable           =semi…

Q: Assume that on January 1, 2021, Water World issues $200,000 of 9% bonds, due in 10 years, with…

A: 1) Workings for the above calculations:

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

A:

Q: Sheffield Company sells 8% bonds having a maturity value of $2,180,000 for $2,014,720. The bonds are…

A: Effective interest rate is the return on saving account on an investment.

Q: On January 1, 2020, Sunny Company issued its 9% P9,000,000 face value bonds, which matures on…

A: Total discount on bonds issue = face value of bonds - issue value of bonds = P9,000,000 - P8,451,000…

Q: On January 1, 2020, Edison Co. issued eight-year bonds with a face value of P 2,000,000 and a stated…

A: Solution: Bonds are the debt instruments issued by entity to obtain funding. Bonds are having…

Q: On July 1, 2020, Chikadora Company issued P4M of 16% bonds to yield 14%.  Interest is payable…

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

Q: Quatro Co. issues bonds dated January 1, 2019, with a par value of $720,000. The bonds' annual…

A: Premium on bonds at the time of issuance = Issue price of bonds - Face value of bonds

Q: Stanford issues bonds dated January 1, 2019, with a par value of $500,000. The bonds’ annual…

A: Bond discount is defined as an amount through which the bond's market prices, which is lower as…