On July 1, 2021, GIl Inc. received 103,288 for each 100,000 face value bonds, 12% bonds, a price that yields 10%. What is the amount of interest payable for ten pieces of this bond as of December 31, 2021?

On July 1, 2021, GIl Inc. received 103,288 for each 100,000 face value bonds, 12% bonds, a price that yields 10%. What is the amount of interest payable for ten pieces of this bond as of December 31, 2021?

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter13: Long-term Liabilities

Section: Chapter Questions

Problem 15MC: Naval Inc. issued $200,000 face value bonds at a discount and received $190,000. At the end of 2018,...

See similar textbooks

Related questions

Q: The Gourmand Cooking School runs short cooking courses at its small campus. Management has…

A: 1. Planning Budget For the month ended September 30 Budgeted courses 4 Budgeted students 64…

Q: Define Cash Management. Discuss in detail the factors that determine the needs cash of a firm

A: Cash management is the process of handling cash within a business. This includes aspects such as…

Q: The City of Touchstone issued $1,000,000 general obligation bonds at 102 to build a new community…

A: Introduction:- The following basic information as follows under:- Touchstone issued $1,000,000…

Q: The budgeted overheads and cost driver volumes of XYZ are as follows. Cost pool Budgeted…

A: Activity based costing represents the allocation of cost on the basis of the activities happened in…

Q: EXPLAIN THE EFFECTS OF DIGITAL REVOLUTIONS IN FINANCE ON CORPORATE GOVERNANCE, CORPORATE ACCOUNTING…

A: Digital revolutions in finance, such as the introduction of online banking and mobile payment apps,…

Q: Dwight Donovan, the president of Benson Enterprises, is considering two investment opportunities.…

A: In the field of financial analysis, a statistic known as the internal rate of return (IRR) is used…

Q: Break-Even in Sales Revenue, Variable-Costing Ratio, Contribution Margin Ratio, Margin of Safety…

A: Variable cost ratio is the ratio of variable costs to the sales revenue. Contribution margin ratio…

Q: Calgate Company had the following shares outstanding and retained earnings at the end of the current…

A: Answer - Cumulative Preference Share - Cumulative preference shares are those type of shares that…

Q: In June, current year, Wendy Winger organized a corporation to provide aerial photography services.…

A: Journal Entries -Journal Entries are used to record transactions entered into by the company. It is…

Q: Problem 3. In 2013 Bill Barnes and several friends organized a corporation called Barnes…

A: Stockholder's Equity -Stockholder's Equity includes the amount contributed by shareholders issued in…

Q: Distinguish between a warranty against infringements and a warranty of no interference.

A: INTRODUCTION: A warranty is a legally binding assurance that a product is suitable for its intended…

Q: Stuff Company is a subsidiary of Pland Corporation and is located in Madrid, Spain, where the…

A: The cost of goods sold is the cost incurred during the manufacturing of sold goods. All the direct…

Q: The VAT payable by or refundable to Info Link Communications Ltd for the month of April 2022.

A: Value Added Tax (VAT)VAT is an indirect tax that is paid by the person who consumes taxable goods…

Q: Welcome Inn Hotels is considering the construction of a new hotel for $90 million. The expected life…

A: Net present value (NPV) : Net present value (NPV) is the difference between the present value of…

Q:  Walter Wentworth Walter Wentworth lives in South Africa. He was on holiday in Australia for the…

A: As per the general provision in South Africa following class of person is liable to pay tax in South…

Q: The management of Dominican Sugar Company is considering whether to process further raw sugar into…

A: 1. Differential analysis Sell raw sugar (Alternative 1) or process further into refined sugar…

Q: Dazzle, Inc. produces beads for jewellery making use. The following information summarizes…

A: Raw materials are defined as the inputs that the industry uses to complete the production process.…

Q: The trial balance of Building Blocks Child Care does not balance. Prepare the corrected trial…

A: Trial balance is a financial report showing the closing balance of all accounts. Every transaction…

Q: Deciding a firm's capital structure can be understood as: a. a capital budgeting decision b. a…

A: 1. Capital budgeting decision: In Simple terms, A capital budgeting decision is both a financial…

Q: Gunflint Adventures operates an airplane service that takes fishing parties to a remote lake resort…

A: The portion of a fixed asset that is considered to have been used up in the current period is…

Q: During the first month of operations ended May 31, Big Sky Creations Company produced 40,000…

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

Q: .How much of the joint cost of the apples is allocated to the pulp? 2.Compute the total inventory…

A: 1. Joint cost of the apples is allocated to the pulp = $1,000,000/8 million *1 million…

Q: Date Jan 1, Beginning 100 Inventory Mar 4, Purchase 400 May 8, Purchase 800 Nov 3, Purchase 500…

A: First In, First Out, more usually abbreviated as FIFO, is a system for managing assets and valuing…

Q: 6. The budgeted overheads and cost driver volumes of XYZ are as follows. Cost pool Budgeted…

A: An activity-based costing system identifies different activities in a production run (called cost…

Q: 2. (Credit Cycles) Consider a bank with the balance sheet given below Assets Liabilities Reserves…

A: Bank Statement - A bank statement is a formal description of all financial activities for each bank…

Q: Entity A is a stand-alone entity (it is not part of a group). Its functional currency is CU.…

A: Translated income statement refers to the income and expenses that should be converted from one…

Q: Zeus Ltd declared a final dividend to its shareholders at the Annual General Meeting on 31.12.2017…

A: Journal Entry: Journal entry is the act of keeping records of transactions in an accounting journal.…

Q: Determine the marketing return on sales (marketing ROS) and return on marketing investment…

A: The amount that is calculated for the purpose of finding out whether the current marketing strategy…

Q: Leanor Valaryian is a resident of the republic of South Africa. He is the owner of various assets…

A: Capital gain refers to the profit earned from selling the capital asset more than its purchased…

Q: William wants to establish a scholarship fund at his former university. He would like the recipients…

A: Present value (PV) is the present value of a future quantity of money or cash flow stream, assuming…

Q: Dolly's Dream Homes, Inc. manufactures doll houses in a continuous process. Various customizing…

A: Stakeholders A stakeholder is any individual, group, or aspect of society that has an interest in…

Q: 31. panel corp own 75% of the voting ordinary shares of saturated corp acquired at book value during…

A: Consolidation is the process under which financial statements including the income statement and the…

Q: Hudson Community College enrolls students in two departments, Liberal Arts and Sciences. The college…

A: Hudson Community college enrolls students in two departments liberal arts and sciences. The college…

Q: In 2022, Laureen is currently single. She paid $2,580 of qualified tuition and related expenses for…

A: Answer:- Adjusted gross income:- The internal revenue service utilizes the adjusted gross income…

Q: Prepare journal entries to record each of the following four separate issuances of stock.

A: Lets understand the basics. Par value of share is a value determine by the company to issue shares…

Q: How do we account for compound financial instruments?

A: These are one form of financial instruments that comprises equity as well as debt portion.…

Q: John has receivables totalling £20,000 after writing off bad debts of £600, and an allowance for…

A: Allowance for doubtful debts is a provision which is made by the entity for the estimated…

Q: Denzil Co. purchased land as a factory site for $600,000. Denzil paid $60,000 to tear down two…

A: Certain expenses incurred when purchasing land should be classified as land because they are…

Q: 1. From the following balances taken from the books Shane Ltd. for the year ending March 31, 2022,…

A: The trade account, which makes up the first section of this account, is used to calculate the…

Q: Prepare the journal entries at December 31, 2020, to record pension expense and related pension…

A: Pension is the amount of money that an individual saves for his or her retirement. It is a…

Q: 1. What is a work sheet?

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

Q: ack Co. acquired an 80% interest in Gill Co at book value on January 1, 2018. Intercompany…

A: Consolidation represents that a corporation acquires a percentage of an other corporation and…

Q: 9. Stocks that don't pay dividends yet Goodwin Technologies, a relatively young company, has been…

A: Formula to calculate Horizon value: Po = D0 * (1+g)/ (R-g) Where, P0 = Stock value D0 = Current…

Q: Hickory Company manufactures two products-14,000 units of Product Y and 6,000 units of Product Z.…

A: Overhead is the amount of expense which is incurred on the making of the products. It includes the…

Q: Marketable securities are a. long term in nature b. are examples of bonds c. traded in the money…

A: Marketable securities are easily and affordably convertible into cash. They are highly liquid…

Q: Computing and Recording Interest Capitalization The following information is from Bowin Inc. for a…

A: Interest capitalization refers to the unpaid interest that is to be added to the amount of the loan.…

Q: Foundation, Incorporated, is comparing two different capital structures: an all-equity plan (Plan I)…

A: The EBIT-EBT study compares alternate methods of financing at different levels of EBIT. Simply…

Q: Roe Construction Company uses the percentage-of-completion method of accounting. In 2021, Roe began…

A: Under the Percentage of completion method, the revenue is recognized at different stages as agreed…

Q: Another team member who is preparing the Budgeted Balance Sheet for the business for the same…

A: Budgets are the estimates or forecasts to be made for future period. It includes forecast for sales,…

Q: A company is thinking about some machines renting for manufactury; The lease have an mount of 1800…

A: The lease is a written contract between two parties in which one party gives its asset on rent to…

Concept explainers

Capital Gain

Any capital asset when sold can give the seller a higher or lower price from its purchase price leading to a capital gain or capital loss. The time period of holding an asset is decided based on if it is a long term or short-term capital gain. On that basis, the rate of taxation is decided if it is 20%, 15% or according to the tax brackets. The rate of taxation differs in the case of equity or debt, whether long or short term. The capital gain can be adjusted from capital loss to arrive at a net capital gain. The amount of gains and the exemption has to be reported in the tax return filed in the financial year in which the asset was transferred. The tax return can be filed quarterly, monthly, semi-annually or annually.

Question

Definition Definition Calculates the present value of a bond's expected future periodic coupon payments. Bond valuation determines the theoretical fair value of a particular bond and helps investors estimate what rate of return they could expect. The bond's theoretical fair value is computed by discounting the future cash flows or coupon payments by an applicable discount rate.

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step 3

VIEW

Step by step

Solved in 3 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

Chung Inc. issued $50,000 of 3-year bonds on January 1, 2018, with a stated rate of 4% and a market rate of 4%. The bonds paid interest semi-annually on June 30 and Dec. 31. How much money did the company receive when the bonds were issued? The bonds would be quoted at what rate?
On January 1, 2018, Wawatosa Inc. issued 5-year bonds with a face value of $200,000 and a stated interest rate of 12% payable semi-annually on July 1 and January 1. The bonds were sold to yield 10%. Assuming the bonds were sold at 107.732, what is the selling price of the bonds? Were they issued at a discount or a premium?
On July 1, a company sells 8-year $250,000 bonds with a stated interest rate of 6%. If interest payments are paid annually, each interest payment will be ________. A. $120,000 B. $60,000 C. $7,500 D. $15,000
On July 1, Somerset Inc. issued $200,000 of 10%, 10-year bonds when the market rate was 12%. The bonds paid interest semi-annually. Assuming the bonds sold at 58.55, what was the selling price of the bonds? Explain why the cash received from selling this bond is different from the $200,000 face value of the bond.
On January 1, a company issued a 5-year $100,000 bond at 6%. Interest payments on the bond of $6,000 are to be made annually. If the company received proceeds of $112,300, how would the bonds issuance be quoted? A. 1.123 B. 112.30 C. 0.890 D. 89.05
Naval Inc. issued $200,000 face value bonds at a discount and received $190,000. At the end of 2018, the balance in the Discount on Bonds Payable account is $5,000. This years balance sheet will show a net liability of ________. A. $200,000 B. $180,000 C. $195,000 D. $205,000
On Jan. 1, Year 1, Foxcroft Inc. issued 100 bonds with a face value of $1,000 for $104,000. The bonds had a stated rate of 6% and paid interest semi-annually. What is the journal entry to record the first payment to the bondholders?
Evie Inc. issued 50 bonds with a $1,000 face value, a five-year life, and a stated annual coupon of 6% for $980 each. What is the total amount of interest expense over the life of the bonds?