Question
In: Accounting
Winner Ltd. is authorized to issue $ 2 comma 000 comma 000 of 3%, 10-year bonds...
Winner Ltd. is authorized to issue $ 2 comma 000 comma 000 of 3%, 10-year bonds payable. On December 31, 2018, when the market interest rate is 5%, the company issues $ 1 comma 600 comma 000 of the bonds. Winner amortizes bond discount using the effective-interest method. The semiannual interest dates are June 30 and December 31.
1.Use the PV function in Excel Superscript ® to calculate the issue price of the bonds.
2.Prepare a bond amortization table for the first year of the bonds.
3.Record the issuance of the bonds payable on December 31, 2018; the first semiannual interest payment on June 30, 2019; and the second payment on December 31, 2019.
Solutions
ekkarill92 answered 1 year agoRelated Solutions
Serenity, Inc. is authorized to issue 11%, 10-year bonds payable. On January 1, 2016, when the...
Serenity, Inc. is authorized to issue 11%, 10-year bonds
payable. On January 1, 2016, when the market interest rate is16%,
the company issues $100,000 of the bonds. The bonds pay interest
semiannually. Prepare an amortization table for the bond using the
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Hunter Corp. issued 8% fifteen-year bonds payable with a face
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Hunter's fiscal year-end on December 31. The bonds pay interest
on January 1 and July 1. Read the requirement LOADING.... a.
Issuance of the bonds payable at par on July 1, 2018 Journal Entry
Date Accounts and Explanations Debit Credit 2018 Jul 1 b. Accrual
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Accounts and...
Midland Utilities has a bond issue outstanding that will mature to its $ 1 comma 000...
Midland Utilities has a bond issue outstanding that will mature
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Your company currently has $ 1 comma 000$1,000 par, 5.25 %5.25% coupon bonds with 10 years...
Your company currently has
$ 1 comma 000$1,000
par,
5.25 %5.25%
coupon bonds with 10 years to maturity and a price of
$ 1 comma 075$1,075.
If you want to issue new 10-year coupon bonds at par, what
coupon rate do you need to set? Assume that for both bonds, the
next coupon payment is due in exactly six months.
You need to set a coupon rate of
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(Round to two decimal places.)
(Related to Checkpoint 9.2 and Checkpoint 9.3) (Bond valuation) The 9-year $1 comma 000 par bonds...
(Related to Checkpoint 9.2 and Checkpoint 9.3) (Bond
valuation) The 9-year $1 comma 000 par bonds of Vail Inc. pay 9
percent interest. The market's required yield to maturity on a
comparable-risk bond is 6 percent. The current market price for the
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b. What is the value of the bonds to you given the yield to
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bond at...
Madison Corporation is authorized to issue $500,000 of 5-year bonds dated June 30, 2016, with a...
Madison Corporation is authorized to issue $500,000 of 5-year
bonds dated June 30, 2016, with a stated rate of interest of 11%.
Interest on the bonds is payable semiannually, and the bonds are
sold on June 30, 2016.
Required:
Determine the proceeds that the company will receive if it sells
the following: (Click here to access the tables to use with this
exercise and round your answers to two decimal places, if
necessary.)
1. The bonds to yield 12%
$...
Compaq Ltd has a net income after tax of $2 000 000 for the year ended...
Compaq Ltd has a net income after tax of $2 000 000 for the year
ended 30 June 2018. At the beginning of the period Compaq Ltd has
900 000 fully paid-up ordinary shares on issue. On 1 January 2018
Compaq Ltd had issued a further 300 000 fully paid-up ordinary
shares at an issue price of $2.00. On 1 March 2018 Compaq Ltd made
a one-for-five bonus issue of ordinary shares out of retained
earnings. The last sale price...
Compaq Ltd has a net income after tax of $2 000 000 for the year ended...
Compaq Ltd has a net income after tax of $2 000 000 for the year
ended 30 June 2018. At the beginning of the period Compaq Ltd has
900 000 fully paid-up ordinary shares on issue. On 1 January 2018
Compaq Ltd had issued a further 300 000 fully paid-up ordinary
shares at an issue price of $2.00. On 1 March 2018 Compaq Ltd made
a one-for-five bonus issue of ordinary shares out of retained
earnings. The last sale price...
att Winne issued $ 600 comma 000$600,000 of 1717?%, 1010?-year bonds payable on January? 1, 20162016....
att Winne
issued
$ 600 comma 000$600,000
of
1717?%,
1010?-year
bonds payable on January? 1,
20162016.
The market interest rate at the date of issuance was
1414?%,
and the bonds pay interest semiannually.
LOADING...
?(Click the icon to view the Present Value of? $1 table.)
LOADING...
?( Click the icon to view thePresent Value of Annuity of? $1
table.)
LOADING...
?(Click the icon to view the Future Value of? $1 table.)
LOADING...
?(Click the icon to view the Future...
Determining the Proceeds from Bond Issues Madison Corporation is authorized to issue $810,000 of 5-year bonds...
Determining the Proceeds from Bond Issues
Madison Corporation is authorized to issue $810,000 of 5-year
bonds dated June 30, 2016, with a stated rate of interest of 11%.
Interest on the bonds is payable semiannually, and the bonds are
sold on June 30, 2016.
Required:
Determine the proceeds that the company will receive if it sells
the following: (Click here to access the tables to use with this
exercise and round your answers to two decimal places, if
necessary.)
1....
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