Question
In: Accounting
National Orthopedics Co. issued 8% bonds, dated January 1, with a face amount of $600,000 on...
National Orthopedics Co. issued 8% bonds, dated January 1, with
a face amount of $600,000 on January 1, 2018. The bonds mature on
December 31, 2021 (4 years). For bonds of similar risk and maturity
the market yield was 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.)
Required:
1. Determine the price of the bonds at January 1,
2018.
2. Prepare the journal entry to record their
issuance by National on January 1, 2018.
3. Prepare an amortization schedule that
determines interest at the effective rate each period.
4. Prepare the journal entry to record interest on
June 30, 2018.
5. Prepare the appropriate journal entries at
maturity on December 31, 2021.
Solutions
ekkarill92 answered 1 year agoRelated Solutions
National Orthopedics Co. issued 8% bonds, dated January 1, with a face amount of $600,000 on...
National Orthopedics Co. issued 8% bonds, dated January 1, with
a face amount of $600,000 on January 1, 2013. The bonds mature on
December 31, 2016 (4 years). For bonds of similar risk and maturity
the market yield was 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.)
Required:
1.
Determine...
National Orthopedics Co. issued 8% bonds, dated January 1, with a face amount of $600,000 on...
National Orthopedics Co. issued 8% bonds, dated January 1, with
a face amount of $600,000 on January 1, 2021. The bonds mature on
December 31, 2024 (4 years). For bonds of similar risk and maturity
the market yield was 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.)
Required:
1. Determine the...
National Orthopedics Co. issued 8% bonds, dated January 1, with a face amount of $600,000 on...
National Orthopedics Co. issued 8% bonds, dated January 1, with
a face amount of $600,000 on January 1, 2016. The bonds mature on
December 31, 2019 (4 years). For bonds of similar risk and maturity
the market yield was 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.) Required: 1. Determine the...
National Orthopedics Co. issued 8% bonds, dated January 1, with a face amount of $750,000 on...
National Orthopedics Co. issued 8% bonds, dated January 1, with
a face amount of $750,000 on January 1, 2021. The bonds mature on
December 31, 2024 (4 years). For bonds of similar risk and maturity
the market yield was 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.) Required: 1. Determine the...
National Orthopedics Co. issued 8% bonds, dated January 1, with a face amount of $750,000 on...
National Orthopedics Co. issued 8% bonds, dated January 1, with
a face amount of $750,000 on January 1, 2018. The bonds mature on
December 31, 2021 (4 years). For bonds of similar risk and maturity
the market yield was 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.)
Required:
1. Determine the...
National Orthopedics Co. issued 9% bonds, dated January 1, with a face amount of $900,000 on...
National Orthopedics Co. issued 9% bonds, dated January 1, with
a face amount of $900,000 on January 1, 2018. The bonds mature on
December 31, 2021 (4 years). For bonds of similar risk and maturity
the market yield was 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.)
Required:
1. Determine the...
National Orthopedics Co. issued 9% bonds, dated January 1, with a face amount of $400,000 on...
National Orthopedics Co. issued 9% bonds, dated January 1, with
a face amount of $400,000 on January 1, 2021. The bonds mature on
December 31, 2024 (4 years). For bonds of similar risk and maturity
the market yield was 12%. 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 National on January 1, 2021.
3. Prepare an...
National Orthopedics Co. issued 11% bonds, dated January 1, with a face amount of $700,000 on...
National Orthopedics Co. issued 11% bonds, dated January 1, with
a face amount of $700,000 on January 1, 2018. The bonds mature on
December 31, 2021 (4 years). For bonds of similar risk and maturity
the market yield was 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.)
Required:
1. Determine the...
1. National Comapny issued 7.5% bonds, dated January 1, with a face amount of $600,000 on...
1. National Comapny issued 7.5% bonds, dated January 1, with a
face amount of $600,000 on January 1, 2017. The bonds mature on
December 31, 2023. The market yield for bonds of similar risk and
maturity was 5.5%. Interest is made semiannually on June 30 and
December 31.
Required:
a. Determine the price of the bonds at January 1, 2017 (be
certain to include all of the "given" information)
b. Prepare a bond amortization table using the effective
interest method...
Appling Enterprises issued 8% bonds with a face amount of $600,000 on January 1, 2021. The...
Appling Enterprises issued 8% bonds with a face amount of
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in 2040 (20 years). For bonds of similar risk and maturity the
market yield was 9%. Interest is paid semiannually on June 30 and
December 31. Appling determines interest expense at the effective
rate. Appling elected the option to report these bonds at their
fair value. The fair values of the bonds at the end of each quarter...
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