Question
In: Accounting
Date Cash Interest Interest Expense Discount Amorization Discount Balance Bond Carrying value 1/1/18 170,604 1,829,396 6/1/18...
| Date | Cash Interest | Interest Expense | Discount Amorization | Discount Balance | Bond Carrying value | |
|---|---|---|---|---|---|---|
| 1/1/18 | 170,604 | 1,829,396 | ||||
| 6/1/18 | 40,000 | 54,882 | 14,882 | 155,722 | 1,844,278 | |
| 270 | 2,000,000 |
The info to put into the PV function that I used was: FV -2,000,000, PMT -40,000, NPER 10, Rate 0.03.
Info was) Semi- anual interest, Issued bond for 2,000,000 Jan 1st 2018, matures 5 years, Market Rate interest 6%, Stated Interst Rate 4%.
The goal is to get the bottom discount balance at the end of the table to 0, and the Bond Carrying Value to be 2,00,000. I am unsure how i have 270 at the bottom, and not 0. Do you know the correct way of calculating this?
Solutions
ekkarill92 answered 1 year agoRelated Solutions
Date Cash interest Interest revenue Amortization of discount Discount balance Amortized Cost 7/1/2018 $ 33,367 $...
Date
Cash
interest
Interest
revenue
Amortization
of discount
Discount
balance
Amortized
Cost
7/1/2018
$ 33,367
$ 666,633
12/31/2018
$ 42,000
$ 46,664
$ 4,664
28,703
671,297
6/30/2019
$ 42,000
46,991
4,991
23,712
676,288
12/31/2019
$ 42,000
47,340
5,340
18,372
681,628
6/30/2020
$ 42,000
47,714
5,714
12,658
687,342
12/31/2020
$ 42,000
48,114
6,114
6,544
693,456
6/30/2021
$ 42,000
48,542
6,542
2
699,998
USING THE TABLE ABOVE PLEASE ENTER USING FORMULAS OR ENTER
MANUALLY FOR THE FINANCIAL STATEMENT BELOW.
PLEASE EXPLAIN HOW...
If bond interest expense is $280,000, bond interest payable decreased by $8,000 and bond discount decreased...
If bond interest expense is $280,000, bond interest payable
decreased by $8,000 and bond discount decreased by $1,000, cash
paid for bond interest is:
a) $273,000
b) $287,000
c) $271,000
d) $280,000
The bond interest expense recorded on an interest payment date is decreased: A. only if the...
The bond interest expense recorded on an interest payment date
is decreased: A. only if the market rate of interest is less than
the stated rate of interest on that date B. by the amortization of
premium on bonds payable C. by the amortization of discount on
bonds payable D. only if the bonds were sold at face value
Compute bond proceeds, amortizing discount by interest method, and interest expense Boyd Co. produces and sells...
Compute bond proceeds, amortizing discount by interest
method, and interest expense
Boyd Co. produces and sells aviation equipment. On the first day
of its fiscal year, Boyd issued $85,000,000 of four-year, 8% bonds
at a market (effective) interest rate of 11%, with interest payable
semiannually. This information has been collected in the Microsoft
Excel Online file. Open the spreadsheet, perform the required
analysis, and input your answers in the questions below.
Open spreadsheet
Compute the following:
The amount of cash...
Compute bond proceeds, amortizing discount by interest method, and interest expense Boyd Co. produces and sells...
Compute bond proceeds, amortizing discount by interest method,
and interest expense Boyd Co. produces and sells aviation
equipment. On the first day of its fiscal year, Boyd issued
$72,000,000 of three-year, 9% bonds at a market (effective)
interest rate of 12%, with interest payable semiannually. This
information has been collected in the Microsoft Excel Online file.
Open the spreadsheet, perform the required analysis, and input your
answers in the questions below. Open spreadsheet Compute the
following: The amount of cash...
Compute bond proceeds, amortizing discount by interest method, and interest expense Boyd Co. produces and sells...
Compute bond proceeds, amortizing discount by interest method,
and interest expense Boyd Co. produces and sells aviation
equipment. On the first day of its fiscal year, Boyd issued
$84,000,000 of five-year, 7% bonds at a market (effective) interest
rate of 11%, with interest payable semiannually. This information
has been collected in the Microsoft Excel Online file. Open the
spreadsheet, perform the required analysis, and input your answers
in the questions below. Open spreadsheet Compute the following: The
amount of cash...
Compute bond proceeds, amortizing discount by interest method, and interest expense DATA Face amount of bonds...
Compute bond proceeds, amortizing discount by interest
method, and interest expense
DATA
Face amount of bonds
$84,000,000
Contract rate of interest
7%
Term of bonds, years
5
Market rate of interest
11%
Interest payment
Semiannual
Using formulas and cell references, perform the required analysis,
and input your answers into the Amount column. Transfer the numeric
results for the green entry cells (C13:C16) into the appropriate
fields in CNOWv2 for grading.
Amount
Formulas
a.
PV of cash proceeds
b.
Discount amortized...
Compute bond proceeds, amortizing discount by interest method, and interest expense DATA Face amount of bonds...
Compute bond proceeds, amortizing discount by interest method,
and interest expense DATA Face amount of bonds $84,000,000 Contract
rate of interest 7% Term of bonds, years 5 Market rate of interest
11% Interest payment Semiannual Using formulas and cell references,
perform the required analysis, and input your answers into the
Amount column. Transfer the numeric results for the green entry
cells (C13:C16) into the appropriate fields in CNOWv2 for grading.
Amount Formulas a. PV of cash proceeds b. Discount amortized...
Compute bond proceeds, amortizing discount by interest method, and interest expense Boyd Co. produces and sells...
Compute bond proceeds, amortizing discount by interest
method, and interest expense
Boyd Co. produces and sells aviation equipment. On the first day
of its fiscal year, Boyd issued $89,000,000 of three-year, 9% bonds
at a market (effective) interest rate of 12%, with interest payable
semiannually. This information has been collected in the Microsoft
Excel Online file. Open the spreadsheet, perform the required
analysis, and input your answers in the questions below.
Open spreadsheet
Compute the following:
The amount of cash...
Compute Bond Proceeds, Amortizing Discount by Interest Method, and Interest Expense Boyd Co. produces and sells...
Compute Bond Proceeds, Amortizing Discount by Interest Method,
and Interest Expense
Boyd Co. produces and sells aviation equipment. On the first day
of its fiscal year, Boyd issued $80,000,000 of five-year, 9% bonds
at a market (effective) interest rate of 12%, with interest payable
semiannually. Compute the following, presenting figures used in
your computations:
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...
ADVERTISEMENT
ADVERTISEMENT
Latest Questions
- . Use the following information to calculate your company's expected return State Probability Return Boom 20%...
- You are considering the following two projects and can only take one. Your cost of capital...
- C++: Write a program that produces truth tables for the following compound propositions. Write the header...
- 1. What is the historical role of investment bankers ? Has this role changed ? Why...
- How were the original Internet requirements met through its design? What are the two main requirements...
- discuss crowdfunding on platforms: What features of the services incorporate virality? What are some of the...
- A textbook of mass 2.08 kg rests on a frictionless, horizontal surface. A cord attached to...
ADVERTISEMENT