Question
In: Accounting
The Bradford Company issued 10% bonds, dated January 1, with a face amount of $100 million...
The Bradford Company issued 10% bonds, dated January 1, with a face amount of $100 million on January 1, 2021. The bonds mature on December 31, 2030 (10 years). For bonds of similar risk and maturity, the market yield is 12%. Interest is paid semiannually on June 30 and December 31. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1)
Required:
1. Determine the price of the bonds at January 1,
2021.
2. to 4. Prepare the journal entries to record
their issuance by The Bradford Company on January 1, 2021, interest
on June 30, 2021 and interest on December 31, 2021 (at the
effective rate).
1. Price of bonds
Journal entry worksheet:
2. Record the bond issuance by the Bradford Company.
3. Record the interest on June 30, 2021 (at the effective rate).
4. Record the interest on December 31, 2021 (at the effective rate).
Solutions
ekkarill92 answered 2 years agoRelated Solutions
The Bradford Company issued 8% bonds, dated January 1, with a face amount of $100 million...
The Bradford Company issued 8% bonds, dated January 1, with a
face amount of $100 million on January 1, 2018 to Saxton-Bose
Corporation. The bonds mature on December 31, 2037 (20 years). For
bonds of similar risk and maturity, the market yield is 10%.
Interest is paid semiannually on June 30 and December 31. (FV of
$1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1)
(Use appropriate factor(s) from the tables
provided.):...
The Bradford Company issued 10% bonds, dated January 1, with a face amount of $80 million...
The Bradford Company issued 10% bonds, dated January 1, with a
face amount of $80 million on January 1, 2021 to Saxton-Bose
Corporation. The bonds mature on December 31, 2030 (10 years). For
bonds of similar risk and maturity, the market yield is 12%.
Interest is paid semiannually on June 30 and December 31. (FV of
$1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of
$1)
Required:
1. to 3. Prepare the journal...
The Bradford Company issued 10% bonds, dated January 1, with a face amount of $80 million...
The Bradford Company issued 10% bonds, dated January 1, with a
face amount of $80 million on January 1, 2021 to Saxton-Bose
Corporation. The bonds mature on December 31, 2030 (10 years). For
bonds of similar risk and maturity, the market yield is 12%.
Interest is paid semiannually on June 30 and December 31. (FV of
$1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of
$1)
Required:
1. to 3. Prepare the journal...
The Bradford Company issued 10% bonds, dated January 1, with a face amount of $50 million...
The Bradford Company issued 10% bonds, dated January 1, with a
face amount of $50 million on January 1, 2018 to Saxton-Bose
Corporation. The bonds mature on December 31, 2027 (10 years). For
bonds of similar risk and maturity, the market yield is 12%.
Interest is paid semiannually on June 30 and December 31. (FV of
$1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use
appropriate factor(s) from the tables provided.):...
1，The Bradford Company issued 10% bonds, dated January 1, with a face amount of $80 million...
1，The Bradford Company issued 10% bonds, dated January 1, with a
face amount of $80 million on January 1, 2021.The bonds mature on
December 31, 2030 (10 years). For bonds of similar risk and
maturity, the market yield is12%. Interest is paid semiannually on
June 30 and December 31.
Required:
1. Determine the price of the bonds at January 1, 2021.
2. Prepare the journal entry to record their issuance by The
Bradford Company on January 1, 2021.
3. Prepare...
1，The Bradford Company issued 10% bonds, dated January 1, with a face amount of $80 million...
1，The Bradford Company issued 10% bonds, dated January 1, with a
face amount of $80 million on January 1, 2021.The bonds mature on
December 31, 2030 (10 years). For bonds of similar risk and
maturity, the market yield is12%. Interest is paid semiannually on
June 30 and December 31.
Required:
1. Determine the price of the bonds at January 1, 2021.
2. Prepare the journal entry to record their issuance by The
Bradford Company on January 1, 2021.
3. Prepare...
3.The Bradford Company issued 10% bonds, dated January 1, with a face amount of $80 million...
3.The Bradford Company issued 10% bonds, dated January 1, with a
face amount of $80 million on January 1, 2021.The bonds mature on
December 31, 2030 (10 years). For bonds of similar risk and
maturity, the market yield is12%. Interest is paid semiannually on
June 30 and December 31.
Required:
1. Determine the price of the bonds at January 1, 2021.
2. Prepare the journal entry to record their issuance by The
Bradford Company on January 1, 2021.
3. Prepare...
The Bradford Company issued 8% bonds, dated January 1, with a face amount of $50 million...
The Bradford Company issued 8% bonds, dated January 1, with a
face amount of $50 million on January 1, 2021 to Saxton-Bose
Corporation. The bonds mature on December 31, 2030 (10 years). For
bonds of similar risk and maturity, the market yield is 10%.
Interest is paid semiannually on June 30 and December 31. (FV of
$1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1)
(Use appropriate factor(s) from the tables
provided.)...
The Bradford Company issued 8% bonds, dated January 1, with a face amount of $50 million...
The Bradford Company issued 8% bonds, dated January 1, with a
face amount of $50 million on January 1, 2018 to Saxton-Bose
Corporation. The bonds mature on December 31, 2022 (5 years). For
bonds of similar risk and maturity, the market yield is 10%.
Interest is paid semiannually on June 30 and December 31. (FV of
$1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1)
(Use appropriate factor(s) from the tables
provided.):...
The Bradford Company issued 12% bonds, dated January 1, with a face amount of $86 million...
The Bradford Company issued 12% bonds, dated January 1, with a
face amount of $86 million on January 1, 2021. The bonds mature on
December 31, 2030 (10 years). For bonds of similar risk and
maturity, the market yield is 14%. Interest is paid semiannually on
June 30 and December 31. (FV of $1, PV of $1, FVA of $1, PVA of $1,
FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from
the tables provided.)
Required:
1. Determine...
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