On January 1, 2021, Cheyenne Co. issued ten-year bonds with a face value of $4,700,000 and a stated interest rate of 10%, payable semiannually on June 30 and December 31. The bonds were sold to yield 12%. Table values are: Present value of 1 for 10 periods at 10% 0.386 Present value of 1 for 10 periods at 12% 0.322 Present value of 1 for 20 periods at 5% 0.377 Present value of 1 for 20 periods at 6% 0.312 Present value of annuity for 10 periods at 10% 6.145 Present value of annuity for 10 periods at 12% 5.650 Present value of annuity for 20 periods at 5% 12.462 Present value of annuity for 20 periods at 6% 11.470     Calculate the issue price of the bonds. Issue price of bond$

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A: Bonds payable: It is a long term liability to the organization issuing it. It is issued to raise…

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A: Bond is a tool for finance for the company. Generally companies borrow money from banks, but in this…

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

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

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

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

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

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A: Interest =  P2,000,000 × 11% = P220,000

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Q: Myriad Solutions, Inc., issued 10% bonds, dated January 1, with a face amount of $320 million on…

A: Requirement 1:

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A: Present value of the principal = face value  of bonds x Present value of 1 for 16 periods

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A: Share warrant: Share Warrant is a document which entitles  bearer of this document for  the shares…

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A: A bond is a fixed obligation to pay that is offered to investors by a company or government…

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A: Present Value of Interest = Interest Amount * The present value of an annuity for 16 periods at 6%

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

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A: The bonds are the financial instruments for the business which are used to raise money from the…

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A: Semiannual Stated interest rate=Annual rate2=9%2=4.5%

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

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A: No. Date Account Titles and Explanations Debit Credit 1. February 1, 2021 Cost of…

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A: Amount received from the bond issuance = (Face value of bonds x issue price/100)  - bond issue cost…

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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: 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 =…

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

Q: On January

A: Bonds are priced by discounting future cash flows. Future cash flows include coupons and par value…

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

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A: We know that the current carrying value of the bond is the present value of all the cash payments to…

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

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A: Half year coupon rate=10%2=5%

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A: Answer 1:

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A: Since you have posted a question with multiple sub parts, we will solve first three Sub parts for…

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A: 1. The journal entry to record the purchase of the bonds: Formulation:

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