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Required: 1-a. Determine the price of the bonds at January 1, 2024. 1-b to 4. Prepare the necessary journal entries. Note: Use tables, Excel, or a financial calculator. (FV of $1, PV of $1, FVA of $1, PVA of $1. FVAD of $1 and PVAD of $1)

Required: 1-a. Determine the price of the bonds at January 1, 2024. 1-b to 4. Prepare the necessary journal entries. Note: Use tables, Excel, or a financial calculator. (FV of $1, PV of $1, FVA of $1, PVA of $1. FVAD of $1 and PVAD of $1)

Intermediate Accounting: Reporting And Analysis
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter14: Financing Liabilities: Bonds And Long-term Notes Payable
Section: Chapter Questions
Problem 16E
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On January 1, 2024, NFB Visual Aids issued $650,000 of its 20-year, 10% bonds. . The bonds were priced to yield 12%. • Interest is payable semiannually on June 30 and December 31. NFB Visual Aids records interest expense at the effective rate and elected the option to report these bonds at their fair value. ⚫ On December 31, 2024, the fair value of the bonds was $555,000 as determined by their market value in the over-the-counter market. • General (risk-free) interest rates did not change during 2024. Required: 1-a. Determine the price of the bonds at January 1, 2024. 1-b to 4. Prepare the necessary journal entries. Note: Use tables, Excel, or a financial calculator. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) Answer is not complete. Complete this question by entering your answers in the tabs below. Req 1A Req 1B to 4 Prepare the necessary journal entries. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round your intermediate calculations and final answers to the nearest whole dollar. General Journal No Date 1 January 01, 2024 Cash Discount on bonds payable Bonds payable 2 June 30, 2024 Interest expense Discount on bonds payable Cash Debit Credit 650,000 95,000 < Prev 4 of 4 Next
Transcribed Image Text:On January 1, 2024, NFB Visual Aids issued $650,000 of its 20-year, 10% bonds. . The bonds were priced to yield 12%. • Interest is payable semiannually on June 30 and December 31. NFB Visual Aids records interest expense at the effective rate and elected the option to report these bonds at their fair value. ⚫ On December 31, 2024, the fair value of the bonds was $555,000 as determined by their market value in the over-the-counter market. • General (risk-free) interest rates did not change during 2024. Required: 1-a. Determine the price of the bonds at January 1, 2024. 1-b to 4. Prepare the necessary journal entries. Note: Use tables, Excel, or a financial calculator. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) Answer is not complete. Complete this question by entering your answers in the tabs below. Req 1A Req 1B to 4 Prepare the necessary journal entries. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round your intermediate calculations and final answers to the nearest whole dollar. General Journal No Date 1 January 01, 2024 Cash Discount on bonds payable Bonds payable 2 June 30, 2024 Interest expense Discount on bonds payable Cash Debit Credit 650,000 95,000 < Prev 4 of 4 Next
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