The Werner Company issued 10-year bonds on January 1, 2020. The debt has a face value of $800,000 and an annual stated interest rate of 6%. Interest payments are due semiannually beginning June 30, 2020. The market interest rate on the bonds is 6%. a.What will this bond be priced at on January 1, 2020?   b.More advanced: On January 1, 2023, the market rate of interest for these bonds is 8%. What will you be willing to pay for these bonds on that date?

Q: LA Fitness Company issued a $10,000,000, 5-year, 7% callable bond on January 1, 2018, when the…

A: In the given question neither the face value of bond , nor the issue price of bond is given.…

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

A: The bonds is payable in series of five equal annual installments every April 30 and pays annual…

Q: On March 1, 2020, Jagger Metal Corp. issued 8.5% bonds dated January 1, 2020. The bonds have a…

A: Bonds are debt instruments which bear fixed interest payable to the holder of the bond. Bond…

Q: On January 1, 2018, Methodical Manufacturing issued 100 bonds, each with a face value of $1,000, a…

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

Q: On January 1, 2021, Surreal Manufacturing issued 540 bonds, each with a face value of $1,000, a…

A: Bond Amortization Schedule Period Ended Changes during the period Ending bond liability balances…

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: On March 1, 2020, Jackson issues 5-year bonds, dated January 1, 2020, with a par value of…

A: The suitable option for the given question seems to be "There is insufficient information to…

Q: On January 1, 2021, Surreal Manufacturing issued 590 bonds, each with a face value of $1,000, a…

A: Journal is the primary book where transactions are originally recorded. Further, a journal entry is…

Q: On January 1, 2019, Canglon, Inc., issues 10%, 5-year bonds with a face value of $150,000 when the…

A: Cost accounting is beneficial since it can demonstrate where a corporation spends money, earns…

Q: Sun Corporation markets a 10-year bond issue dated January 1, 2020. The bonds pay interest…

A: solution : Hence the correct answer is option d. Month accrued: 1, Amortization period: 113 months…

Q: Quatro Co. issues bonds dated January 1, 2019, with a par value of $400,000. The bonds’ annual…

A: 1. Explain the amount of the premium on these bonds at issuance.

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: 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 June 1, 2019, Swifty Company sold $2,460,000 in long-term bonds for $2,157,700. The bonds will…

A: Interest payment = $2,460,000*8% Interest payment = $196,800

Q: On January 1, 2021, Twister Enterprises, a manufacturer of a variety of transportable spin rides,…

A: Discount on bonds payable = $ 600000 - $ 544795 = $ 55205

Q: he Maple Company issued 5-year bonds on January 1, 2020. The debt has a face value of $400,000 and…

A: Price of bond is the sum of present value of future cash flows from the bond. Cash flows include…

Q: The Windy City Company issued $500,000 of 12% bonds on January 1, 2020. The bonds were sold for…

A:

Q: Quatro Co. issues bonds dated January 1, 2019, with a par value of $400,000. The bonds’ annual…

A: 1. What is the amount of the premium on these bonds at issuance? When a company issues bonds at the…

Q: On January 1, 2021, Sheridan Co. issued ten-year bonds with a face value of $4,500,000 and a stated…

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

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, 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: On January 1, 2021, Nebraska Company issued a 3-year bond with face value of P1,500,000 and a 9%…

A: Gain on retirement of bonds is the difference between the net carrying value of the bond on the date…

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, White Water issues $600,000 of 7% bonds, due in 10 years, with interest payable…

A: Annual interest payment = Face value of bonds x rate of interest x time = $600,000 x 7% x 1 year =…

Q: On January

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

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: On March 31, 2020, Adtech Inc. issued $200,000, 9%,10-year bonds. The bonds pay interest…

A: Prepare journal entries as follows: Result:

Q: Date General Journal Debit Credit January 01, 2021

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

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 January 1, 2021, Twister Enterprises, a manufacturer of a variety of transportable spin rides,…

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

Q: On January 1, 2021, Nebraska Company issued a 3-year bond with face value of P1,500,000 and a 9%…

A: First we need to calculate the fair value of the bond. = Coupon x PVAF(r,n) + FV x PVF(r,n) Where,…

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 January 1, 2021, Surreal Manufacturing issued 540 bonds, each with a face value of $1,000, a…

A: Solution 1:             Period Changes during the period Ending bond liability balances Interest…

Q: Spiller Corp. plans to issue 10%, 15-year, $500,000 par value bonds payable that pay interest…

A: The calculation is under step 2.

Q: Quatro Co. issues bonds dated January 1, 2019, with a par value of $880,000. The bonds' annual…

A: Answer 1:

Q: On December 31, 2021, Interlink Communications issued 6% stated rate bonds with a face amount of…

A: Price of the bond: Price of the bond is the present value of the amount to be paid after end of the…

Q: On January 1, 2018, Methodical Manufacturing issued 100 bonds, each with a face value of $1,000, a…

A: Journal entry is a primary entry that records the financial transactions initially.

Q: On January 1, 2021, LMN Company issued 10-year bonds with a face amount of P3,000,000 at a stated…

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

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

A: 1.Net amount of liability reported in balance sheet of December 31,2021:

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: Stanford issues bonds dated January 1, 2019, with a par value of $250,000. The bonds' annual…

A: Bonds payable are one of the sources of finance and are shown as liability. If the interest rate is…

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, 2020, Riverbed Company sold 12% bonds having a maturity value of $850,000 for…

A: Formula: Amortization of bond premium = Interest payment - Interest expense where, Interest payment…

Q: On January 2, 2020, Lucban Company issued 9% bonds in the amount of P10,000,000 which mature on…

A: Solution : Let us first note down the given information : Coupon rate of bond      =9% Market…

Q: On January 1, 2021, Twister Enterprises, a manufacturer of a variety of transportable spin rides,…

A: Semiannual interest payment = Face value of bonds x rate of interest x 6/12 = $550,000 x 7% x 6/12 =…

Q: on january 1, 2019, bay company issues bonds with a face value of $850,000 that pay 9% interest…

A:

Q: Spiller Corp. plans to issue 10%, 15-year, $500,000 par value bonds payable that pay interest…

A: Face Value of Bond = $500000 Coupon Rate = 10% per annum Coupon Amountfor 6 months = 500000*10% /2 =…

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: 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