What the answer for 12, 16,2212. It’s not 40,447.7016. It’s not 100,775.9422. It’s not 44,851.73 Use the following to answer questions 20 – 24On January 1, year 1, JT borrows $41,000 to purchase a newvehicle by agreeing to a 3.0%, 6-year loan with the bank.Payments are due at the end of each month with the firstinstallment (vehicle payment) due on January 31, year 1.ROUND YOUR ANSWERS TO THE NEAREST CENT.20. Determine the monthly vehicle payment (installment)$21. Determine the interest expense for the first car payment$22. How much of the payment will decrease the amountowed (principal)? $23. After the first vehicle payment is made the amount owedon the vehicle would be: $24. Determine interest expense for the second car payment$ Use the following to answer questions 11 – 15AL issues 4.0%, 20-year bonds with a face amount of$1,000,000 for $986,529.23. The market interest rate forbonds of similar risk and maturity is 4.1%. Interest is paidannually.11.$Determine the interestраyment.12.$(rounded to nearest dollar).Determine interest expense for the first interestраyment.13.What will happen to interest expense each interestpayment? (Increase, decrease, remain constant)What will happen to the bond liability (carryingvalue) each interest payment? (Increase, decrease, remainconstant).14.15.$How much will the company pay outwhen the bonds mature in 20 years (assume all interestpayments have already been paid)?16. $(rounded to nearest dollar) A ten yearbond issue with a face amount of $100,000 bears interestat the rate of 5.0%. The current market rate of interest is4.90%. Determine the issue price of this annual bond.

Since you have posted two independent questions, thus, as per the guidelines, the solution to the…

Use the following to answer questions 20 – 24 On January 1, year 1, JT borrows $41,000 to purchase a new vehicle by agreeing to a 3.0%, 6-year loan with the bank. Payments are due at the end of each month with the first installment (vehicle payment) due on January 31, year 1. ROUND YOUR ANSWERS TO THE NEAREST CENT. 20. Determine the monthly vehicle payment (installment) $ 21. Determine the interest expense for the first car payment $ 22. How much of the payment will decrease the amount owed (principal)? $. 23. After the first vehicle payment is made the amount owed on the vehicle would be: $ 24. Determine interest expense for the second car payment $

Use the following to answer questions 20 – 24 On January 1, year 1, JT borrows $41,000 to purchase a new vehicle by agreeing to a 3.0%, 6-year loan with the bank. Payments are due at the end of each month with the first installment (vehicle payment) due on January 31, year 1. ROUND YOUR ANSWERS TO THE NEAREST CENT. 20. Determine the monthly vehicle payment (installment) $ 21. Determine the interest expense for the first car payment $ 22. How much of the payment will decrease the amount owed (principal)? $. 23. After the first vehicle payment is made the amount owed on the vehicle would be: $ 24. Determine interest expense for the second car payment $

Financial Accounting: The Impact on Decision Makers

10th Edition

ISBN:9781305654174

Author:Gary A. Porter, Curtis L. Norton

Publisher:Gary A. Porter, Curtis L. Norton

Chapter10: Long-term Liabilities

Section: Chapter Questions

Problem 10.3E: Issue Price The following terms relate to independent bond issues: 500 bonds; $1,000 face value; 8%...

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On October 1 a company sells a 3-year, $2,500,000 bond with an 8% stated interest rate. Interest is paid quarterly and the bond is sold at 89.35. On October 1 the company would collect ________. A. $200,000 B. $558,438 C. $2,233,750 D. $6,701,250
Wilbury Corporation issued 1 million of 13.5% bonds for 985,071.68. The bonds are dated and issued October 1, 2019, are due September 30, 2020, and pay interest semiannually on March 31 and September 30. Assume an effective yield rate of 14%. Required: 1. Prepare a bond interest expense and discount amortization schedule using the straight-line method. 2. Prepare a bond interest expense and discount amortization schedule using the effective interest method. 3. Prepare adjusting entries for the end of the fiscal year December 31, 2019, using the: a. straight-line method of amortization b. effective interest method of amortization 4. If income before interest and income taxes of 30% in 2020 is 500,000, compute net income under each alternative. 5. Assume the company retired the bonds on June 30, 2020, at 98 plus accrued interest. Prepare the journal entries to record the bond retirement using the: a. straight line method of amortization b. effective interest method of amortization 6. Compute the companys times interest earned (pretax operating income divided by interest expense) for 2020 under each alternative.
Charleston Inc. issued $200,000 bonds with a stated rate of 10%. The bonds had a 10-year maturity date. Interest is to be paid semi-annually and the market rate of interest is 8%. If the bonds sold at 113.55, what amount was received upon issuance?
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
Beluga Inc. issued 10-year bonds with a face value of $100,000 and a stated rate of 3% when the market rate was 4%. Interest was paid annually. The bonds were sold at 87.5. What was the sales price of the bonds? Were they issued at a discount, a premium, or at par?
Issue Price The following terms relate to independent bond issues: 500 bonds; $1,000 face value; 8% stated rate; 5 years; annual interest payments 500 bonds; $1,000 face value; 8% stated rate; 5 years; semiannual interest payments 800 bonds; $1,000 face value; 8% stated rate; 10 years; semiannual interest payments 2,000 bonds; $500 face value; 12% stated rate; 15 years; semiannual interest payments Required Assuming the market rate of interest is 10%, calculate the selling price for each bond issue.
Bats Corporation issued 800,000 of 12% face value bonds for 851,705.70. The bonds were dated and issued on April 1, 2019, are due March 31, 2023, and pay interest semiannually on September 30 and March 31. Bats sold the bonds to yield 10%. Required: 1. Prepare a bond interest expense and premium amortization schedule using the straight-line method. 2. Prepare a bond interest expense and premium amortization schedule using the effective interest method. 3. Prepare any adjusting entries for the end of the fiscal year, December 31, 2019, using the: a. straight-line method of amortization b. effective interest method of amortization 4. Assume the company retires the bonds on June 30, 2020, at 103 plus accrued interest. Prepare the journal entries to record the bond retirement using the: a. straight-line method of amortization b. effective interest method of amortization