Question
In: Accounting
Venezuela Inc. issued $2,000,000 5-year bonds at 9%. These bonds were issued on January 1, 2017...
Venezuela Inc. issued $2,000,000 5-year bonds at 9%. These bonds were issued on January 1, 2017 and pay interest on January 1 and July 1. The YTM of the bond is 11%, i.e. the effective interest rate for the company is 11%.
a. Calculate the value of the bonds and prepare the journal entry to record the issuance of the bonds on January 1, 2017.
b. Prepare a bond amortization schedule up to and including January 1, 2022.
c. Assume that on July 1, 2020, the company retires half of the bonds by calling them back at 102%. Prepare the journal entry to record this retirement.
Solutions
ekkarill92 answered 1 year agoRelated Solutions
Venezuela Inc. issued $2,000,000 5-year bonds at 9%. These bonds were issued on January 1, 2017...
Venezuela Inc. issued $2,000,000 5-year bonds at 9%. These
bonds were issued on January 1, 2017 and pay interest on January 1
and July 1. The YTM of the bond is 11%, i.e. the effective interest
rate for the company is 11%.
a. Calculate the value of the bonds and prepare the journal
entry to record the issuance of the bonds on January 1, 2017.
b. Prepare a bond amortization schedule up to and including
January 1, 2022.
c. Assume...
Venezuela Inc. issued $2,000,000 5-year bonds at 9%. These bonds were issued on January 1, 2017...
Venezuela Inc. issued $2,000,000 5-year bonds at 9%.
These bonds were issued on January 1, 2017 and pay interest on
January 1 and July 1. The YTM of the bond is 11%, i.e. the
effective interest rate for the company is 11%.
a. Calculate the value of the bonds and prepare the
journal entry to record the issuance of the bonds on January 1,
2017.
b. Prepare a bond amortization schedule up to and
including January 1, 2022. c. Assume...
On January 1, Year 2017, Kennard Co. issued $2,000,000, 5%, 10-year bonds, with interest payable on...
On January 1, Year
2017, Kennard Co. issued $2,000,000, 5%, 10-year bonds, with
interest payable on June 30 and December 31 when the market rate of
interest for similar bonds was 6%. Use the following format and
round figures to nearest dollar.
1. Actual proceeds
received from the issuance of the bonds
2. Prepare an
amortization schedule for Year 1 and Year 2 using the effective
interest rate method.
Date Cash
Paid Interest Expense Amortization Bond
Carry...
Question: I. On January 1, Year 2017, Kennard Co. issued $2,000,000, 5%, 10-year bonds, with interest...
Question: I. On January 1, Year 2017, Kennard Co.
issued $2,000,000, 5%, 10-year bonds, with interest payab...
I. On January 1, Year
2017, Kennard Co. issued $2,000,000, 5%, 10-year bonds, with
interest payable on June 30 and December 31 when the market rate of
interest for similar bonds was 6%. Use the following format and
round figures to nearest dollar.
1. Actual proceeds
received from the issuance of the bonds
2. Prepare an
amortization schedule for Year 1 and Year...
I. On January 1, Year 2017, Kennard Co. issued $2,000,000, 5%, 10-year bonds, with interest payable...
I. On January 1, Year 2017, Kennard Co. issued $2,000,000, 5%,
10-year bonds, with interest payable on June 30 and December 31
when the market rate of interest for similar bonds was 6%. Use the
following format and round figures to nearest dollar.
1. Actual proceeds received from the issuance of the bonds
2. Prepare an amortization schedule for Year 1 and Year 2 using
the effective interest rate method.
Date Cash Paid Interest Expense
Amortization Bond...
cullumber products issued $3.06 million of 8% 5-year bonds on january 1 2017. the bonds were...
cullumber products issued $3.06 million of 8% 5-year
bonds on january 1 2017. the bonds were dated janjary 1 and pay
interest annually. there is no collateral secured against the bonds
and cullumber products may buy back the bonds at any time.the
market interest rate was 9% for these bonds.cullumber has a
calender year end.
calculate the price of the bonds
On June 1, 2017, W Corp. issued $3,000,000, 9%, 5-year bonds at face value. They were...
On June 1, 2017, W Corp. issued $3,000,000, 9%, 5-year bonds at
face value. They were dated June 1, 2017, and pay interest annually
on June 1. Financial statements are prepared annually
on December 31.
(a) Prepare the journal entry to record the
issuance of the bonds on June 01, 2017.
(b) Prepare the adjusting entry to record the
accrual of interest on December 31, 2017.
(d) Prepare the journal entry to record payment
of (J,F,M,A,M) interest on June 1,...
I.On January 1, 2019, MUVE INC. issued $800,000, 6%, 5-year bonds for $735,110. The bonds were...
I.On
January 1, 2019,
MUVE INC. issued $800,000, 6%, 5-year bonds for $735,110. The bonds
were sold to yield an effective-interest rate of 8%. Interest is
paid annually on January 1. The company uses the effective-interest
method of amortization.
Instructions:
(a)Prepare
a bond discount amortization schedule which shows the amortization
of discount for
the first two interest payment dates.
(Round to the nearest dollar).
MAUVE
INC.
Bond
Discount Amortization
Effective-Interest
Method—Annual Interest Payments
6%
Bonds Issued at 8%
Annual
InterestInterest...
On Jan 1, 2012, Roger Company issued $2,000,000, 9%, 5-year bonds dated Jan 1, 2012, at...
On Jan 1, 2012, Roger Company issued $2,000,000, 9%, 5-year
bonds dated Jan 1, 2012, at 97. The bonds pay semiannual interest
on Jan 1 and July 1. The company uses the straight-line method of
amortization and has a calendar year-end.
Prepare all the journal entries on the dates Jan 1 and July
1.
On January 1, Manderlee Inc. issued $180,000 of 9% 5-year bonds when the market interest rate...
On January 1, Manderlee Inc. issued $180,000 of 9%
5-year bonds when the market interest rate
was 10%. The bonds pay interest semiannually on June 30th and
December 31. Proceeds
received were $173,050.
These bonds were issued at a DISCOUNT/PREMIUM (circle one) because
the Contract Rate is
EQUAL TO/ GREATER THAN/ LESS THAN (circle one) the Market
Rate
Record the following transactions:
Bond issue on January 1
Paid semiannual interest on June 30
Amortized the bond premium or discount
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