Question
In: Accounting
On July 1, 2015, ABC Co. issued 10-year, $4,574 million maturity value, 3% coupon bonds when...
On July 1, 2015, ABC Co. issued 10-year, $4,574 million maturity value, 3% coupon bonds when the market rate was 2% for a cash price of $4,994 million. Interest was payable semi-annually on Dec. 31 and June 30. ABC also issued $3,527 million face value, 20-year, zero coupon bonds on July 1, 2017 that mature June 30, 2037 for a cash price of $2,619 million. The effective market interest rate at issuance was 1.5%. ABC repurchased $1,143 million face value coupon bonds on June 30, 2020 for $1,220 million cash (after interest was paid) and $582 million in face value of the zero- coupon bonds on June 30, 2021 for a purchase price of $432 million cash. 1. Show the calculations for how the cash prices were determined for both bond issuances and make the journal entries for each at issuance using discount or premium accounts if applicable. (Do not net in Bond Payable).
Solutions
ekkarill92 answered 2 years agoRelated Solutions
On July 1, 2015, ABC Co. issued 10-year, $4,574 million maturity value, 3% coupon bonds when...
On July 1, 2015, ABC Co. issued 10-year, $4,574 million maturity
value, 3% coupon bonds when the market rate was 2% for a cash price
of $4,994 million. Interest was payable semi-annually on Dec. 31
and June 30. ABC also issued $3,527 million face value, 20-year,
zero coupon bonds on July 1, 2017 that mature June 30, 2037 for a
cash price of $2,619 million. The effective market interest rate at
issuance was 1.5%. ABC repurchased $1,143 million face value...
On July 1, 2015, ABC Co. issued 10-year, $4,574 million maturity value, 3% coupon bonds when...
On July 1, 2015, ABC Co. issued 10-year, $4,574 million maturity
value, 3% coupon bonds when the market rate was 2% for a cash price
of $4,994 million. Interest was payable semi-annually on Dec. 31
and June 30. ABC also issued $3,527 million face value, 20-year,
zero coupon bonds on July 1, 2017 that mature June 30, 2037 for a
cash price of $2,619 million. The effective market interest rate at
issuance was 1.5%. ABC repurchased $1,143 million face value...
On July 1, 2015, ABC Co. issued 10-year, $4,574 million maturity value, 3% coupon bonds when...
On July 1, 2015, ABC Co. issued 10-year, $4,574 million maturity
value, 3% coupon bonds when the market rate was 2% for a cash price
of $4,994 million. Interest was payable semi-annually on Dec. 31
and June 30. ABC also issued $3,527 million face value, 20-year,
zero coupon bonds on July 1, 2017 that mature June 30, 2037 for a
cash price of $2,619 million. The effective market interest rate at
issuance was 1.5%. ABC repurchased $1,143 million face value...
ABC Co. issued 1 million 6 percent annual coupon bonds that mature in 10 years. The...
ABC Co. issued 1 million 6 percent annual coupon bonds that
mature in 10 years. The face value is $1,000 per bond. What are the
expected cash flows from one of these bonds?
On January 1, 2015, Rex Co. issued 10-year bonds with a face value of $5,000,000 and...
On January 1, 2015, Rex Co. issued 10-year bonds with a face
value of $5,000,000 and a stated interest rate of 12%, payable
semiannually on June 30 and December 31. The bonds were sold to
yield 10%.
Calculate the issue price of the bond in dollars
Calculate the issue price of the bonds as a percentage
Make the journal entry to record the issuance of the bond on
January 1, 2015
On January 1, 2015, Rex Co. issued 10-year bonds with a face value of $5,000,000 and...
On January 1, 2015, Rex Co. issued 10-year bonds with a face
value of $5,000,000 and a stated interest rate of 12%, payable
semiannually on June 30 and December 31. The bonds were sold to
yield 10%.
Prepare the amortization table for the years 2015, 2016 &
2017
Make the journal entries for 2017
How much was the interest expense for 2017?
On January 1, 2015, Rex Co. issued 10-year bonds with a face value of $5,000,000 and...
On January 1, 2015, Rex Co. issued 10-year bonds with a face
value of $5,000,000 and a stated interest rate of 12%, payable
semiannually on June 30 and December 31. The bonds were sold to
yield 10%.
On December 31, 2017 $400,000 of the bonds were retired at 95.
Make the journal entry to record the retirement
On December 31, 2017 $300,000 of the bonds were
converted. Make the journal entry to record the
retirement
Accounting for Bonds Payable On January 1, 2015, Crabb & Co. issued 10-year bonds with a...
Accounting for Bonds Payable On January 1, 2015, Crabb & Co.
issued 10-year bonds with a total face value of $500,000. The bond
requires annual interest payments on December 31 at a stated rate
of 6%. Bonds with similar features are discounted in the market at
8%
.1. DATE ACCOUNT NAME DEBIT CREDIT BALANCE SHEET INCOME STMT A =
L + E R - E 01/01/15
DATE
ACCOUNT NAME
DEBIT
CREDIT
BALANCE SHEET
INCOME STMT
A
=
L
+
E...
ABC Co. issued 14-year bonds a year ago at a coupon rate of 7.7%. The bonds...
ABC Co. issued 14-year bonds a year ago at a coupon rate of
7.7%. The bonds make semiannual payments. If the YTM on these bonds
is 6.0%, what is the current bond price? (Do not round
intermediate calculations. Round the final answer to 2 decimal
places. Omit $ sign in your response.)
Toys Co. issued 10-year bonds a year ago at a coupon rate of 10%. The bonds...
Toys Co. issued 10-year bonds a year ago at a coupon rate of
10%. The bonds make semiannual payments and have a par value of
$1,000. If the YTM on these bonds is 9%, what is the current bond
price?
ADVERTISEMENT
ADVERTISEMENT
Latest Questions
- explain how Texas Health Resource and Intel IT department complied with computer ethics?
- What is the signed decimal equivalent of the following signed-magnitude binary value? 11101010.1001 What is the...
- For each of the following situations provide the type of variable(s) that you would use to...
- C++ Text message decoder Use getline() to get a line of user input into a string:...
- Research aspects of the case; Janus vs. AFSCME. Know the type of union being discussed. Detail...
- When have you seen extremely creative tactics used in a communications campaign? Any successes? Any failures?
- What is the unsigned hexadecimal equivalent of the following unsigned octal value? Do NOT include in...
ADVERTISEMENT