Question
In: Accounting
On January 1, 2019, Bradley, Inc., issued 12% bonds with a face amount of $66 million,...
On January 1, 2019, Bradley, Inc., issued 12% bonds with a face amount of $66 million, dated January 1. The bonds mature in 2040 (20 years). The market yield for bonds of similar risk and maturity is 12%. Interest is paid semiannually.
Instructions
1. Determine the price of the bonds at January 1, 2019, and prepare the journal entry to record their issuance by Bradley.
2. Assume the market rate was 8,5%. Determine the price of the bonds at January 1, 2018, and prepare the journal entry to record their issuance by Bradley.
Solutions
Expert Solution
In case of any doubts or Issues, please comment below
ekkarill92 answered 2 years agoRelated Solutions
On January 1, 2021, Charles, Inc., issued 12% bonds with a face amount of $17 million....
On January 1, 2021, Charles, Inc., issued 12% bonds with a face
amount of $17 million. The bonds were priced at $14 million to
yield 14%. Interest is paid semiannually on June 30 and December
31. Charles’s fiscal year ends September 30.
Required:
1. What amount(s) related to the bonds would Charles report in its
balance sheet at September 30, 2021?
2. What amount(s) related to the bonds would Charles report in its
income statement for the year ended September...
On January 1, 2018, Instaform, Inc., issued 12% bonds with a face amount of $75 million,...
On January 1, 2018, Instaform, Inc., issued 12% bonds with a
face amount of $75 million, dated January 1. The bonds mature in
2037 (20 years). The market yield for bonds of similar risk and
maturity is 14%. Interest is paid semiannually. (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-a.
Determine the price of the bonds at January 1, 2018....
On January 1, 2018, Instaform, Inc., issued 12% bonds with a face amount of $55 million,...
On January 1, 2018, Instaform, Inc., issued 12% bonds with a
face amount of $55 million, dated January 1. The bonds mature in
2037 (20 years). The market yield for bonds of similar risk and
maturity is 14%. Interest is paid semiannually. (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-a. Determine the price of the bonds at January 1,
2018....
On January 1, 2021, Instaform, Inc., issued 12% bonds with a face amount of $65 million,...
On January 1, 2021, Instaform, Inc., issued 12% bonds with a
face amount of $65 million, dated January 1. The bonds mature in
2040 (20 years). The market yield for bonds of similar risk and
maturity is 14%. Interest is paid semiannually. (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-a. Determine the price of the bonds at January 1,
2021....
On January 1, 2021, Charles, Inc., issued 12% bonds with a face amount of $17 million....
On January 1, 2021, Charles, Inc., issued 12% bonds with a face
amount of $17 million. The bonds were priced at $14 million to
yield 14%. Interest is paid semiannually on June 30 and December
31. Charles’s fiscal year ends September 30.
Required:
1. What amount(s) related to the bonds would Charles report in its
balance sheet at September 30, 2021?
2. What amount(s) related to the bonds would Charles report in its
income statement for the year ended September...
On January 1, 2018, Baddour, Inc., issued 12% bonds with a face amount of $170 million....
On January 1, 2018, Baddour, Inc., issued 12% bonds with a face
amount of $170 million. The bonds were priced at $149.0 million to
yield 14%. Interest is paid semiannually on June 30 and December
31. Baddour’s fiscal year ends September 30.
Required:
1. What amount(s) related to the bonds would Baddour
report in its balance sheet at September 30, 2018?
2. What amount(s) related to the bonds would
Baddour report in its income statement for the year ended September...
On January 1, 2021, Baddour, Inc., issued 12% bonds with a face amount of $163 million....
On January 1, 2021, Baddour, Inc., issued 12% bonds with a face
amount of $163 million. The bonds were priced at $142.7 million to
yield 14%. Interest is paid semiannually on June 30 and December
31. Baddour’s fiscal year ends September 30.
Required:
1. What amount(s) related to the bonds would Baddour report in
its balance sheet at September 30, 2021?
2. What amount(s) related to the bonds would Baddour report in
its income statement for the year ended September...
On January 1, 2021, Baddour, Inc., issued 12% bonds with a face amount of $166 million....
On January 1, 2021, Baddour, Inc., issued 12% bonds with a face
amount of $166 million. The bonds were priced at $145.4 million to
yield 14%. Interest is paid semiannually on June 30 and December
31. Baddour’s fiscal year ends September 30. Required: 1. What
amount(s) related to the bonds would Baddour report in its balance
sheet at September 30, 2021? 2. What amount(s) related to the bonds
would Baddour report in its income statement for the year ended
September...
On January 1, 2021, Instaform, Inc., issued 12% bonds with a face amount of $45 million,...
On January 1, 2021, Instaform, Inc., issued 12% bonds with a
face amount of $45 million, dated January 1. The bonds mature in
2040 (20 years). The market yield for bonds of similar risk and
maturity is 14%. Interest is paid semiannually. (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-a. Determine the price of the bonds at January 1,
2021....
Myriad Solutions, Inc. issued 12% bonds, dated January 1, with a face amount of $480 million...
Myriad Solutions, Inc. issued 12% bonds, dated January 1, with a
face amount of $480 million on January 1, 2021, for $429,149,088.
The bonds mature on December 31, 2030 (10 years). For bonds of
similar risk and maturity the market yield is 14%. Interest is paid
semiannually on June 30 and December 31.
Required: Calculate the amounts related to the
bonds that Myriad would report in its financial statements.
ADVERTISEMENT
ADVERTISEMENT
Latest Questions
- More and more adults are considering commuting to work by bicycle rather than car, but few...
- Please answer these questions Data Processing and Analysis using python. Thank you In statistics, an outlier...
- Write a function file that accepts each of the four vectors as inputs. The function file...
- Kant says that to act morally is to act out of duty. How does this differ...
- Suppose you are trying to determine the capacity (in gallons) of the gas tank needed on...
- List the arithmetic operators used in BASIC and state their priorities of execution in a statement....
- Describe the espoused values of a company you have worked for (or been exposed to -...
ADVERTISEMENT