Pinder Co. produces and sells high-quality video equipment. To finance its operations, Pinder Co. issued $25,000,000 of five-year, 7% bonds, with interest payable semiannually, at a market (effective) interest rate of 9%. Determine the present value of the bonds payable, using the present value tables in Exhibits 8 and 10. Round to the nearest dollar.

Q: Pinder Co. produces and sells high-quality video equipment. To finance its operations, Pinder issued…

A: Workings: Formula: Present value annuity :  [ ( 1 - ( 1 + r ) -n ) / r )]

Q: Buffalo Corporation issues $590,000 of 9% bonds, due in 10 years, with interest payable…

A: Number of half years=10×2=20 half-years

Q: Pinder Co. produces and sells high-quality video equipment. To finance its operations, Pinder issued…

A: Coupon rate per period (7%/2) 3.50% Face value of bond  $  25,000,000 Market rate per period…

Q: Boyd Co. produces and sells aviation equipment. On the first day of its fiscal year, Boyd Co. issued…

A: Solution: A bond is a financial debt instrument so it requires its issuing company to pay periodic…

Q: Renfro Company issued $300,000 of 8%, 10-year bonds at 102. Interest is paid annually, and the…

A: We have the following information: Renfro Company issued $300,000 of 8%, 10-year bonds at 102%…

Q: On the first day of its fiscal year, Chin Company issued $17,000,000 of five-year, 11% bonds to…

A: Discount on Bonds Payable  = Face value of bonds - Issue price = $17,000,000 - $15,777,966 =…

Q: On the first day of its fiscal year, Chin Company issued $10,000,000 of five-year, 7% bonds to…

A: When the bonds are issued at coupon rate lower than market rate, they are usually issued at…

Q: Moss Co. issued $840,000 of five-year, 11% bonds, with interest payable semiannually, at a market…

A: A bond is a financial security that is sold by business firms to raise borrowing funds. It is issued…

Q: Moss Co. issued $450,000 of four-year, 11% bonds, with interest payable semiannually, at a market…

A: Present value of bonds payable = Present value of interest payments + Present value of principal  n…

Q: Ware Co. produces and sells motorcycle parts. On the first day of its fiscal year, Ware issued…

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

Q: Moss Co. issued $101,000 of five-year, 12% bonds with interest payable semiannually, at a market…

A: A bond is a debt instrument that is issued by the organization to raise the funds from the investor…

Q: On the first day of the fiscal year, Lisbon Co. issued $1,000,000 of 10-year, 7% bonds for…

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

Q: Culver Corporation issues $450,000 of 8% bonds, due in 9 years, with interest payable semiannually.…

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

Q: Ware Co. produces and sells motorcycle parts. On the first day of its fiscal year, Ware issued…

A: Given information par value of bonds =$ 42,000,000 Life of bond = 4 years,  = 4x2 = 8 semi annual…

Q: Los Altos, Inc., sold $100,000 face value, 6.0% coupon rate, 4 year bonds, for an aggregate issue…

A: Formula: Interest amount = Face value of bond x interest rate. Multiplying face value of bond with…

Q: Diana Inc. issued $300,000 of its 7%, 5-year bonds for $287,844 when the market rate was 8%. The…

A: Bonds are the debt security which is issued by government or corporates for arranging the funds.…

Q: On the first day of its fiscal year, Chin Company issued $20,300,000 of five-year, 11% bonds to…

A: Bonds is one of the important  liability of the business, on which regular interest payments needs…

Q: Williams Company issued $600,000 of 10%, 5-year bonds. Interest is paid semiannually, and the…

A: Issue price of bonds = (face value of bonds x present value of $ 1 at market interest rate for the…

Q: Ware Co. produces and sells motorcycle parts. On the first day of its fiscal year, Ware issued…

A:

Q: During 20x9, Oceanic Co. Issued 3,000 of its 9%, ₱1,000 face value bonds at 1011/2. In connection…

A: During 20x9, Oceanic Co. issued 9% 3000 bonds. Issued price = P101.5 Issued price of bonds = P101.5…

Q: Campbell Inc. produces and sells outdoor equipment. On July 1, 20Y1, Campbell issued $30,000,000 of…

A: The Net Present Value(NPV) is the difference between the present value of cash inflow and the…

Q: On the first day of its fiscal year, Chin Company issued $13,200,000 of five-year, 6% bonds to…

A: Bond financing is an instrument for borrowing the funds. The borrower has to pay a fixed amount of…

Q: Splish Inc. issues $3,700,000 of 7% bonds due in 12 years with interest payable at year-end. The…

A: Current price of the bond is the present value of future payments to be received. Future payments…

Q: Pinder Co. produces and sells high-quality video equipment. To finance its operations, Pinder issued…

A: A financial instrument with a fixed cost that helps a company to raise funds for business operations…

Q: Moss Co. issued $101,000 of five-year, 11% bonds with interest payable semiannually, at a market…

A: Concept: The present value (PV) is defined as the current value of the future sum of money or the…

Q: Lewis Co. produces and sells aviation equipment. On the first day of its fiscal year, Lewis Co.…

A:

Q: Amount received by Splish when bonds were issued

A: Computation of amount received by Splish on issue of bonds shall be shown below :

Q: Pearl Company sells $1,000,000 general obligation bonds for 101. The interest rate on the bonds,paid…

A: Calculation of sale amount of bond is as follows: Resultant table:

Q: a.  Journalize the entries to record the following: Issuance of the bonds. First semiannual…

A: Given: Price of the bond issued = $ 10,000,000 Rate of the bond = 7 % Interest rate = 8 % Cash…

Q: A Corporation sold an issue of 15-year bonds, having a total face value of ₱12,000,000 for…

A: A sinking fund is a means of repayment of funds raised through a bond issue by periodic payment to a…

Q: Moss Co. issued $101,000 of five-year, 12% bonds with interest payable semiannually, at a market…

A: Given information:   issue price of the bonds $101,000 interest rate 12% effective interest…

Q: Red & Blue Company sold bonds at 97 on an interest payment date for $500,000. Assuming thebonds…

A: Firstly we shall calculate the issue price of the bonds. Then, we shall calculate the discount on…

Q: On the first day of its fiscal year, Chin Company issued $17,000,000 of five-year, 11% bonds to…

A: Discount on Bonds Payable  = Face value of bonds - Issue price = $17,000,000 - $15,777,966 =…

Q: Evans & Sons, Inc., sold $100,000 face value, six percent coupon rate, four-year bonds, for an…

A: Bond financing is an instrument for borrowing the funds. The borrower has to pay a fix amount of…

Q: On April 1, 20-1, Rebound Co. issued $300,000 of 10%, 10-year bonds, callable at 105 after three…

A: 1.

Q: Boyd Co. produces and sells aviation equipment. On the first day of its fiscal year, Boyd issued…

A: Bond is defined as a debt instrument or debt security. The bond issuer raises capital by issuing…

Q: A Corporation sold an issue of 15-year bonds, having a total face value of P12,000,000 for…

A: Sinking Fund - A Sinking fund is a type of fund that is created and set up purposely for repaying…

Q: Moss Co. issued $101,000 of four-year, 12% bonds with interest payable semiannually, at a market…

A: Present value of the bonds payable = Present value of principal + Present value of interest payments…

Q: Boyd Co. produces and sells aviation equipment.  On the first day of its fiscal year, Boyd Co.…

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

Q: Boyd Co. produces and sells aviation equipment. On the first day of its fiscal year, Boyd issued…

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

Q: Moss Co. issued $42,000,000 of five-year, 11% bonds, with interest payable semiannually, at a market…

A: Present Value: The value of today’s amount expected to be paid or received in the future at a…

Q: Pinder Co. produces and sells high-quality video equipment. To finance its operations, Pinder issued…

A: The present value of the bond is the present value of all the coupons and the face value of the bond…

Q: On the first day of its fiscal year, Chin Company issued $26,400,000 of five-year, 5% bonds to…

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

Q: Pinder Co. produces and sells high-quality video equipment. To finance its operations, Pinder issued…

A: Present value of the bond is calculated by adding the Present value of the amount to be paid on…

Q: Boyd Co. produces and sells aviation equipment. On the first day of its fiscal year, Boyd issued…

A: As posted multiple independent questions we are answering only first three sub parts kindly repost…

Q: Ware Co. produces and sells motorcycle parts. On the first day of its fiscal year, Ware issued…

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