FINANCIAL ACCOUNTING (LL W/CONNECT) >IP<
4th Edition
ISBN: 9781260063035
Author: SPICELAND
Publisher: MCG CUSTOM
expand_more
expand_more
format_list_bulleted
Question
error_outline
This textbook solution is under construction.
Students have asked these similar questions
Boyd Co. produces and sells aviation equipment. On the first day of its fiscal year, Boyd issued $74,000,000 of three-year, 9% bonds at a market (effective) interest rate of 13%, with interest payable semiannually.
The amount of cash proceeds from the sale of the bonds. Round your answer to the nearest dollar.
$ fill in the blank 2
The amount of discount to be amortized for the first semiannual interest payment period, using the interest method. Round your answer to the nearest dollar.
$ fill in the blank 3
The amount of discount to be amortized for the second semiannual interest payment period, using the interest method. Round your answer to the nearest dollar.
$ fill in the blank 4
The amount of the bond interest expense for the first year. Round your answer to the nearest dollar.
$ fill in the blank 5
Viking Voyager specializes in the design and production of replica Viking boats. On January 1, 2024, the company issues $3,000,000 of 9% bonds, due in 10 years, with interest payable semiannually on June 30 and December 31 each year.
3. If the market interest rate is 8%, the bonds will issue at $3,203,855. Record the bond issue on January 1, 2024, and the first two semiannual interest payments on June 30, 2024, and December 31, 2024. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field. Round your answers to the nearest dollar amount.)
Ware Co. produces and sells motorcycle parts. On the first day of its fiscal year, Ware issued $37,000,000 of three-year, 11% bonds at a market (effective) interest rate of 10%, with interest payable semiannually. This information has been collected in the Microsoft Excel Online file.
The amount of cash proceeds from the sale of the bonds. Round your answer to the nearest dollar.
$
The amount of premium to be amortized for the first semiannual interest payment period, using the interest method. Round your answer to the nearest dollar.
$
The amount of premium to be amortized for the second semiannual interest payment period, using the interest method. Round your answer to the nearest dollar.
$
The amount of the bond interest expense for the first year. Do not round intermediate calculations. Round your final answer to the nearest dollar.
$
Knowledge Booster
Similar questions
- Diana Inc. issued $100,000 of its 9%, 5-year bonds for $96,149 when the market rate was 10%. The bonds pay interest semi-annually. Prepare an amortization table for the first three payments.arrow_forwardOn 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. $15,000arrow_forwardViking Voyager specializes in the design and production of replica Viking boats. On January 1, 2021, the company issues $3,000,000 of 9% bonds, due in 10 years, with interest payable semiannually on June 30 and December 31 each year.Required:1. If the market interest rate is 9%, the bonds will issue at $3,000,000. Record the bond issue on January 1, 2021, and the first two semiannual interest payments on June 30, 2021, and December 31, 2021.2. If the market interest rate is 10%, the bonds will issue at $2,813,067. Record the bond issue on January 1, 2021, and the first two semiannual interest payments on June 30, 2021, and December 31, 2021.3. If the market interest rate is 8%, the bonds will issue at $3,203,855. Record the bond issue on January 1, 2021, and the first two semiannual interest payments on June 30, 2021, and December 31, 2021.arrow_forward
- Ware Co. produces and sells motorcycle parts. On the first day of its fiscal year, Ware issued $28,000,000 of four-year, 11% bonds at a market (effective) interest rate of 9%, with interest payable semiannually. The amount of cash proceeds from the sale of the bonds. Round your answer to the nearest dollar. $ fill in the blank 2 The amount of premium to be amortized for the first semiannual interest payment period, using the interest method. Round your answer to the nearest dollar. $ fill in the blank 3 The amount of premium to be amortized for the second semiannual interest payment period, using the interest method. Round your answer to the nearest dollar. $ fill in the blank 4 The amount of the bond interest expense for the first year. Round your answer to the nearest dollar. $ fill in the blank 5arrow_forwardMa3. Dino Company purchased a bond with a face value of $100,000 with a stated interest rate of 6% that pays interest semi-annually on June 30 and December 31. The bond was purchased on January 1, 20X1 and matures in 5 years. It was purchased at 91.889 when interest rates in the market were 8%. Record journal entries that the company would record during 20X1 if the company accounts for this investment under the amortized cost model. Indicate the amounts that would appear on the year-end statement of financial position with regard to this investment. Assume that market interest rate fell to 2% by January 1, 20X3. On that date the bond investment was sold. Record the journal entry that would be made at that time.arrow_forwardBoyd Co. produces and sells aviation equipment. On the first day of its fiscal year, Boyd Co. issued $70,000,000 of three-year, 11% bonds at a market (effective) interest rate of 13%, with interest payable semiannually. Compute the following: a. The amount of cash proceeds from the sale of the bonds. Use the tables of present values in Exhibit 5 and Exhibit 7. Round to the nearest dollar b. The amount of discount to be amortized for the first semiannual interest payment period, using the interest method. Round to the nearest dollar c. The amount of discount to be amortized for the second semiannual interest payment period, using the interest method. Round to the nearest dollar d. The amount of the bond interest expense for the first year. Round to the nearest dollar.arrow_forward
- Viking Voyager specializes in the design and production of replica Viking boats. On January 1, 2021, the company issues $1,860,000 of 7% bonds, due in 15 years, with interest payable semiannually on June 30 and December 31 each year. 1. If the market interest rate is 7%, the bonds will issue at $1,860,000. Record the bond issue on January 1, 2021, and the first two semiannual interest payments on June 30, 2021, and December 31, 2021. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.)arrow_forwardBoyd Co. produces and sells aviation equipment. On the first day of its fiscal year, Boyd issued $83,000,000 of five-year, 8% bonds at a market (effective) interest rate of 10%, with interest payable semiannually. This information has been collected in the Microsoft Excel Online file. The amount of discount to be amortized for the first semiannual interest payment period, using the interest method. Round your answer to the nearest dollar.arrow_forwardOn January 1, 2020, Marimar Company issued 10,000 of its 12%, P1,000 face value 5-year bonds at 105. Interest on the bonds is payable annually every December 31. In connection with the sale of these bonds, Marimar paid the following expenses: Promotion costs P100,000 Engraving and printing 400,000 Underwriter's commissions 500,000 How much is the initial carrying value of the bond?arrow_forward
- Pinder Co. produces and sells high-quality video equipment. To finance its operations, Pinder 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?arrow_forwardOn January 1, Splash City issues $310,000 of 7% bonds, due in 15 years, with interest payable semiannually on June 30 and December 31 each year. T. Bone Investment Company (TBIC) purchases all of the bonds in a private placement.Assuming the market interest rate on the issue date is 6%, TBIC will purchase the bonds for $340,381. 2. Record the purchase of the bonds by TBIC on January 1 and the receipt of the first two semiannual interest payments on June 30 and December 31.arrow_forwardRequired information (The following information applies to the questions displayed below.) Mi-T-M Corporation is a leading designer and manufacturer of high quality industrial equipment. Mi-T- M Corporation issues $540,000 of 7% bonds on January 1, 2021 to finance operations. The bonds are due in 10 years. Interest is paid semiannually on June 30 and December 31. 3. If the market interest rate is 6%, the bonds will issue at $580,169. Record the bond issue on January 1, 2021, and the first two semiannual interest payments on June 30, 2021, and December 31, 2021. (If no entry is required for a particular transaction/event, select "No Journal Entry Reguired" in the first account field. Round your answers to the nearest dollar amount.) View transaction list Journal entry worksheet 2 3 > ces Record the bond issue. Note: Enter debits before credits Date General Journal Debit Credit January 01, 2021 Required information (The following information applies to the questions displayed below.)…arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
- Principles of Accounting Volume 1AccountingISBN:9781947172685Author:OpenStaxPublisher:OpenStax College
Principles of Accounting Volume 1
Accounting
ISBN:9781947172685
Author:OpenStax
Publisher:OpenStax College