WebOn January 1, 2024, East Lansing, Inc., issues $2,000,000 of 10 percent, 5-year bonds that pay interest of $100,000 semiannually. The market rate is 8 percent at the time of issuance. The present value of 1 at 4% for 10 periods is 0.6756. The present value of an annuity at 4% for 10 periods is 8.1109. WebBelow is a partial bond amortization schedule for the bonds: What is the interest expense on the bonds in 2024? Muluple Choice \( \$ 761,922 \) \( \$ 1,400,000 \) \( \$ 765.637 \) …
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WebInterest is paid semiannually on January 1 and July 1. If the issuing corporation uses the straight-line method to amortize the discount on bonds payable, the semiannual amortization amount is ANSWER: A a.$2,060,000 b.$1,940,000 c.$2,100,000 d.$2,000,000 WORK: 2,000,000 - 1,960,000 / (5x2=10) 10=4,000 WebBonds Payable; 50,000 A company issues $90,000 of 5%, 5-year bonds dated January 1 that pay interest semiannually on June 30 and December 31 each year. If the issuer accepts $95,000 for the bonds, the issuer will record the sale with a (debit/credit) Credit to (Discount/Premium) Premium on Bonds Payable in the amount of $5,000. Credit; Premium
WebThe interest is paid semiannually, and the bonds mature in 7 years. Their par value is $1,000. If your required rate of return is 14 percent, what is the value of the bond? What is the value if the interest is paid annually? ... payment at the end: type: 0: value of a bond =PV(7%,14,-55,-1000,0) 868.8179802: conclusion: WebNov 6, 2024 · Bonds normally pay coupon interest semiannually. But assume a bond makes coupon payments annually, and if all else is held equal, such a change in the …
WebA company issues $50,000 of 8%, 10-year bonds dated January 1 that pay interest semiannually on June 30 and December 31, each year. If bonds are sold at par value, the issuer records the payment of principal at maturity with a debit to ______ in the amount of ______. - Bonds Payable; $90,000 - Bonds Payable; $50,000 - Interest Expense; $50,000 WebBonds payable (credit) 240,000 Enviro Company issues 8%, 10-year bonds with a par value of $250,000 and semiannual interest payments. On the issue date, the annual market rate for these bonds is 5%, which implies a selling price of 123.375. The straight-line method is used to allocate interest expense. 1.
WebStudy with Quizlet and memorize flashcards containing terms like The 6.5 percent bond of ABCO has a yield to maturity of 6.82 percent. The bond matures in seven years, has a face value of $1,000, and pays semiannual interest payments. What is the amount of each coupon payment?, A $1,000 face value bond currently has a yield to maturity of 8.22 …
WebThe interest is paid semiannually, and the bonds mature in 7 years. Their par value is $1,000. If your required rate of return is 14 percent, what is the value of the bond? What … triguard car coverWebThe bond interest rate is 8% and interest is paid semi-annually. The journal entry to record the purchase would be: A. Debit: Investment in Bonds $100,000 and Interest Receivable $1,500; Credit: Cash $101,500 B. Debit: Investment in Bonds $100,000; Credit: Interest Revenue $1,500 and Cash $98,500 triguna ashwathaWebApr 10, 2024 · The bonds, which pay interest semiannually, will mature in ten years, and have a coupon rate of 5.5% on a face value of $1,000. a) Assume your required return is 7% (market rate) for the bonds in this risk class, what is … triguenita meaningWebThe bonds pay interest semiannually. The market rate of interest is 9.0% and the bond selling price was $2,516,532. The bond issuance should be recorded as: Debit Cash $2,516,532; debit Discount on Bonds Payable $183,468; credit Bonds Payable $2,700,000. triguna flowserveWebThe bonds pay interest semiannually on June 30 and December 31 each year. If bonds are sold at par value, the issuer records the sale with which of the following entries? Debit to Cash $500,000; and credit to Bond Payable $500,000. triguna softwaresWebStudy with Quizlet and memorize flashcards containing terms like In order to expand its business, Mueller Inc. is borrowing $1 million from its bank. Mueller is utilizing this type of financing:, financing refers to obtaining investment from stockholders. (Enter only one word.), At the beginning of the year, Petra owes $10,000 on an installment notes … triguna clarks inn buffet priceWebThe bonds pay interest semiannually. The market rate of interest is 8.5% and the bond selling price was $2,889,352. The bond issuance should be recorded as: Debit Cash $2,889,352; debit Discount on Bonds Payable $210,648; credit Bonds Payable $3,100,000. A company issued 7%, 15-year bonds with a par value of $480,000 that pay interest … terry glasson actor