On January 1, 2018, Loop Raceway issued 580 bonds, each with a face value of $1,000, a stated interest rate of 5 percent paid annually on December 31, and a maturity date of December 31, 2020. On the issue date, the market interest rate was 6 percent, so the total proceeds from the bond issue were $564,485. Loop uses the straight-line bond amortization method and adjusts for any rounding errors when recording interest in the final year.

Required:

1. 1. Prepare a bond amortization schedule.

2. 2-5. Prepare the journal entries to record the bond issue, the interest payments on December 31, 2018 and 2019, the interest and face value payment on December 31, 2020 and the bond retirement. Assume the bonds are retired on January 1, 2020, at a price of 98.

On January 1, 2018, Loop Raceway issued 580 bonds, each with a face value of $1,000, a stated interest rate of 5 percent paid annually on December 31, and a maturity date of December 31, 2020. On the issue date, the market interest rate was 6 percent, so the total proceeds from the bond issue were $564,485. Loop uses the straight-line bond amortization method and adjusts for any rounding errors when recording interest in the final year. Required: 1. Prepare a bond amortization schedule. 2-5. Prepare the journal entries to record the bond issue, the interest payments on December 31, 2018 and 2019, the interest and face value payment on December 31, 2020 and the bond retirement. Assume the bonds are retired on January 1, 2020, at a price of 98.

On January 1, 2018, Loop Raceway issued 530 bonds, each with a face value of $1,000, a stated interest rate of 7 percent paid annually on December 31, and a maturity date of December 31, 2020. On the issue date, the market interest rate was 8 percent, so the total proceeds from the bond issue were $516,324. Loop uses the straight-line bond amortization method and adjusts for any rounding errors when recording interest in the final year.

Required:

1. 1. Prepare a bond amortization schedule.

2. 2-5. Prepare the journal entries to record the bond issue, the interest payments on December 31, 2018 and 2019, the interest and face value payment on December 31, 2020 and the bond retirement. Assume the bonds are retired on January 1, 2020, at a price of 99.

Bridgeport Corp. sponsors a defined benefit pension plan for its employees. On January 1, 2020, the following balances relate to this plan.

As a result of the operation of the plan during 2020, the following additional data are provided by the actuary.

Using the data above, compute pension expense for Bridgeport Corp. for the year 2020 by preparing a pension worksheet.

On January 1, 2018, Loop Raceway issued 550 bonds, each with a face value of $1,000, a stated interest rate of 5 percent paid annually on December 31, and a maturity date of December 31, 2020. On the issue date, the market interest rate was 6 percent, so the total proceeds from the bond issue were $535,288. Loop uses the straight-line bond amortization method and adjusts for any rounding errors when recording interest in the final year. Required:

1. Prepare a bond amortization schedule.

2-5. Prepare the journal entries to record the bond issue, the interest payments on December 31, 2018 and 2019, the interest and face value payment on December 31, 2020 and the bond retirement. Assume the bonds are retired on January 1, 2020, at a price of 98.

On January 1, 2018, Loop Raceway issued 520 bonds, each with a face value of $1,000, a stated interest rate of 5 percent paid annually on December 31, and a maturity date of December 31, 2020. On the issue date, the market interest rate was 6 percent, so the total proceeds from the bond issue were $506,090. Loop uses the straight-line bond amortization method and adjusts for any rounding errors when recording interest in the final year.

Required:

1. 1. Prepare a bond amortization schedule.

2. 2-5. Prepare the journal entries to record the bond issue, the interest payments on December 31, 2018 and 2019, the interest and face value payment on December 31, 2020 and the bond retirement. Assume the bonds are retired on January 1, 2020, at a price of 98.

1. Below, you will see a pricing curve for Oil Futures. Your client is an oil producer (they are extracting oil from the ground and selling it to refineries)    They wish to hedge their estimated production for March 2021, June 2021, and September 2021.

Oil Pricing Curve

June 2020 $52.35

Sept 2020 $51.00

Dec 2020    $50.05

Mar 2021 $48.10

June 2021 $47.15

Sept 2021    $44.25

1. Oil future prices are said to be in __________.
2. What hedge rates could your client lock into today for Mar21, Jun21, and Sep21?
3. On settlement date for each of the 3 hedges, assume the spot price of oil has dropped to $38.00 per barrel. Show the calculations (2 steps) of the settlement for each of the above three dates. ($38.00/barrel is the price for each of the three dates)

Between the beginning of 2020 and the middle of 2020,

A. the typical interest rate on jumbo mortgage went up, relative to the interest rate on conforming mortgages

B. the typical interest rate on conforming mortgages went up, relative to the interest rate on jumbo mortgages

Paul is celebrating his 43rd birthday today and is planning for a retirement savings programe for
his family.

[Planned expenses]

- Paul’s daughter is now 6 years old and he plans to send her to a top local university in 12 years.
Currently, the cost of studying (tuition fees and living expenses) is $150,000 per year, but it is
expected to increase with the inflation rate of 3% per year. It takes his daughter 4 years to
complete her undergraduate study, and it is assumed that he will have to pay the tutition fees
and living expenses for his daughter on his 55th, 56th, 57th and 58th birthdays.

- Besides, he would need $2,000,000 to take his wife for a round-the-world trip at their 30th
anniversary when he reaches 62.

- Paul is planning to retire at the age of 65. He estimates that he will need $30,000 a month to
enjoy his retirement years with his wife, with the first withdrawal on his 65th birthday and the
last withdrawal on his 90th birthday.

- He would also like to donate $40,000 semiannually to his university, starting from his 70th
birthday through the 80th birthday.

- He plans to leave $10,000,000 to his family at his 90th birthday.

[Planned savings and cash inflows]
- Eight years ago, Paul joined his employer’s retirement plan that paid him 6% interest
(compounded monthly). At the end of each month, he deposited $5,000 into the retirement
account. He is planning to move all the funds from his retirement account to a high-yield
savings account after he made the last deposit today.

- In addition, he plans to make a quarterly deposit to the high-yield savings account, with the
first deposit to be made a quarter from today and the last deposit one year before his retirement
(i.e. on his 64th birthday). He expects to earn a quarterly return of 3.7971% from the high-yield
account. When he retires, he will have to move all his money to a low-risk account that enables
him to withdraw money whenever he needs. It is expected that the low-risk account will pay
him an interest of 2% (compounded semiannually).

- He expects to stay in his company until he retires and receive a loyalty bonus of $80,000 at his
60th birthday. The loyalty bonus will be deposited to the high-yield account as well.

(a) How much does Paul currently have in his employer’s retirement account (before he moves his
fund to the high-yield account)?

(b) What is the present value (at Paul’s 43rd birthday) of the total costs for sending her daughter to
the university for undergraduate study?

(c) How much must Paul deposit every quarter in order to meet all his withdrawal needs?

The total population of the United States was 151, 325, 798 in 1950; it increased to 281,421,906 in 2000 and to 308,745,538 in 2010.

Find the percent change in population of the US from 1950 to 2010.