Homework Answers
| Payment | 1 & 2 | = year 2018 | ||
| Payment 2& 3 = Year 2019 | ||||
| Interest rate = Interest for period 1/ opening outstanding balance | ||||
| = $344632/11487747 | ||||
| =3% | ||||
| Interest to be recognized in 2019 | ||||
| Payment 3 | $ 3,41,261 | |||
| Payment 4 | $ 3,39,498 | |||
| ($1131611*0.03) | ||||
| Total | $ 6,80,759 | |||
| Correct Option: THIRD | ||||
| Please upvote. | ||||
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Prescott Corporation issued ten thousand $1,000 bonds on January 1 2018. The bonds have a 10...
Prescott Corporation issued ten thousand $1,000 bonds on January 1, 2021. The bonds have a 10-year...
Prescott Corporation issued ten thousand $1,000 bonds on January 1, 2021. The bonds have a 10-year term and pay interest semiannually. This is the partial bond amortization schedule for the bonds. Effective Decrease in Interest Balance Payment Cash Outstanding Balance 11,487,747 11,432,379 11,375,350 11,316,611 400,000 400,000 400,000 400,000 344,632 342,971 341,261 55,368 57,029 58,739 What is the stated annual rate of interest on the bonds? Multiple Choice o o
35)_ 35) Prescott Corporation issued ten thousand $1,000 bonds on January 1, 2018. The bonds have...
35)_ 35) Prescott Corporation issued ten thousand $1,000 bonds on January 1, 2018. The bonds have a 10-year term and pay interest semiannually. This is the partial bond amortization schedule for the bonds. Effective Interest Payment Cash Decrease in Balance 400,000 400,000 400,000 400,000 344,632 342,971 341,261 55,368 57,029 58,739 Outstanding Balance 11,487,747 11,432,379 11,375,350 11,316,611 What would be the total interest expense recognized for the bond issue over its full term? A) $9,487,747. B) $8,000,000. C) $11,487,747. D) $6,512,253.
Cherry Corporation issued $10,000,000 bonds on January 1, 2018. The bonds have a 10-year term and...
Cherry Corporation issued $10,000,000 bonds on January 1, 2018. The bonds have a 10-year term and pay interest semiannually. This is the partial bond amortization schedule for the bonds. Effective Decrease in Outstanding Payment CashInterest Balance 400,000 344,632 400,000 342,971 400,000 341 400,000 Balance 11,487,747 11,432,379 11,375,350 11,316,611 55,368 57,029 58,739 ,261 a. What is the selling price of the bond issue? (1 point b. What is the annual stated interest rate on the bonds? (3 points) c. What is...
Which of the following is true concerning financial statement disclosure for debt instruments? a. The fair value of financial instruments must be disclosed either in the body of the financial statemen...
Which of the following is true concerning financial statement disclosure for debt instruments? a. The fair value of financial instruments must be disclosed either in the body of the financial statements or in disclosure notes b. Disclosures should include the aggregate amounts payable for each of the next five years for any long-term borrowing c. Both the issuer and the investor report interest as an operating activity on the statement of cash flows d. All of the above Chism Corporation...
Discount-Mart issued ten thousand $1,000 bonds on January 1, 2021. The bonds have a 10-year term...
Discount-Mart issued ten thousand $1,000 bonds on January 1, 2021. The bonds have a 10-year term and pay interest semiannually. This is the partial bond amortization schedule for the bonds. Effective Decrease in Outstanding Payment Cash Interest Balance Balance 8,640,967 1 300,000 345,639 45,639 8,686,606 2 300,000 347,464 47,464 8,734,070 3 300,000 349,363 49,363 8,783,433 4 300,000 What is the effective annual rate of interest on the bonds? 6%. 8%. 3%. 4%.
Discount-Mart issued ten thousand $1,000 bonds on January 1, 2021. The bonds have a 10-year term...
Discount-Mart issued ten thousand $1,000 bonds on January 1, 2021. The bonds have a 10-year term and pay interest semiannually. This is the partial bond amortization schedule for the bonds. Payment Effective Decrease in Interest Balance Cash 300,000 300,000 300,000 300,000 Outstanding Balance 8,640, 967 8,686,606 8,734,070 8,783,433 345,639 347,464 349, 363 45,639 47,464 49,363 What is the book value of the bonds as of December 31, 2022? Multiple Choice 0 $8,783,433. 0 $8,686,606. 0 $8,834,770. 0 $8,734,070.
1 question 2 parts Discount-Mart issued ten thousand $1,000 bonds on January 1, 2021. The bonds...
1 question 2 parts
Discount-Mart issued ten thousand $1,000 bonds on January 1, 2021. The bonds have a 10-year term and pay interest semiannually. This is the partial bond amortization schedule for the bonds. Effective Interest Decrease in Balance Payment Cash 1 2 300,000 300,000 300,000 300,000 345,639 347, 464 349, 363 Outstanding Balance 8,640,967 8,686,606 8,734,070 8,783, 433 45,639 47, 464 49, 363 What is the book value of the bonds as of December 31, 2022? $8,783,433 O $8,686,606....
11) Discount-Mart issues $10 million in bonds on January 1, 2018. The bonds have a ten-year...
11) Discount-Mart issues $10 million in bonds on January 1, 2018. The bonds have a ten-year term and pay interest semiannually on June 30 and December 31 each year. Below is a partial bond amortization schedule for the bonds: Increase in Carrying Value Cash Paid Date Interest Expense Carrying Value $8,640,967 8,686,606 8,734,070 8,783,433 8,834,770 1/1/2018 6/30/2018 12/31/2018 6/30/2019 12/31/2019 $300,000$345,639 300,000 300,000 300,000 $45,639 47,464 49,363 51,337 347,464 349,363 351,337 What is the interest expense on the bonds in...
1. Allied Corporation has just issued ten thousand $1,000 bonds, maturing in 2048, to establish a...
1. Allied Corporation has just issued ten thousand $1,000 bonds, maturing in 2048, to establish a research and development fund for a new product. The goal is to develop and launch this new product by late 2020. The offering interest rate was 4.50% for the bonds. Identity the following values for each bond: Face amount __________ Yield _____ Coupon payment _____ Amount paid _____ semiannually Periods to maturity _____ Present value __________ Yield to maturity _____ 2. Using the Allied...
February 4, 2019 1. On January 1, 2018, Piper Co. issued ten-year bonds with a face...
February 4, 2019 1. On January 1, 2018, Piper Co. issued ten-year bonds with a face value of $5,000,000 and a stated interest rate of 10%, payable semiannually on June 30 and December 31. The bonds were sold to yield 12%. nstructions (a) Calculate the issue price of the bonds. Show all calculations. Also make the journal entry with an explanation. (b) Prepare the amortization table for 2018, Jan 1, June 30 and December 31. Assume that amortization is recorded...
Prescott Corporation issued ten thousand $1,000 bonds on January 1, 2021. The bonds have a 10-year term and pay interest semiannually. This is the partial bond amortization schedule for the bonds. Effective Decrease in Interest Balance Payment Cash Outstanding Balance 11,487,747 11,432,379 11,375,350 11,316,611 400,000 400,000 400,000 400,000 344,632 342,971 341,261 55,368 57,029 58,739 What is the stated annual rate of interest on the bonds? Multiple Choice o o
35)_ 35) Prescott Corporation issued ten thousand $1,000 bonds on January 1, 2018. The bonds have a 10-year term and pay interest semiannually. This is the partial bond amortization schedule for the bonds. Effective Interest Payment Cash Decrease in Balance 400,000 400,000 400,000 400,000 344,632 342,971 341,261 55,368 57,029 58,739 Outstanding Balance 11,487,747 11,432,379 11,375,350 11,316,611 What would be the total interest expense recognized for the bond issue over its full term? A) $9,487,747. B) $8,000,000. C) $11,487,747. D) $6,512,253.
Cherry Corporation issued $10,000,000 bonds on January 1, 2018. The bonds have a 10-year term and pay interest semiannually. This is the partial bond amortization schedule for the bonds. Effective Decrease in Outstanding Payment CashInterest Balance 400,000 344,632 400,000 342,971 400,000 341 400,000 Balance 11,487,747 11,432,379 11,375,350 11,316,611 55,368 57,029 58,739 ,261 a. What is the selling price of the bond issue? (1 point b. What is the annual stated interest rate on the bonds? (3 points) c. What is...
Discount-Mart issued ten thousand $1,000 bonds on January 1, 2021. The bonds have a 10-year term and pay interest semiannually. This is the partial bond amortization schedule for the bonds. Effective Decrease in Outstanding Payment Cash Interest Balance Balance 8,640,967 1 300,000 345,639 45,639 8,686,606 2 300,000 347,464 47,464 8,734,070 3 300,000 349,363 49,363 8,783,433 4 300,000 What is the effective annual rate of interest on the bonds? 6%. 8%. 3%. 4%.
Discount-Mart issued ten thousand $1,000 bonds on January 1, 2021. The bonds have a 10-year term and pay interest semiannually. This is the partial bond amortization schedule for the bonds. Payment Effective Decrease in Interest Balance Cash 300,000 300,000 300,000 300,000 Outstanding Balance 8,640, 967 8,686,606 8,734,070 8,783,433 345,639 347,464 349, 363 45,639 47,464 49,363 What is the book value of the bonds as of December 31, 2022? Multiple Choice 0 $8,783,433. 0 $8,686,606. 0 $8,834,770. 0 $8,734,070.
1 question 2 parts
Discount-Mart issued ten thousand $1,000 bonds on January 1, 2021. The bonds have a 10-year term and pay interest semiannually. This is the partial bond amortization schedule for the bonds. Effective Interest Decrease in Balance Payment Cash 1 2 300,000 300,000 300,000 300,000 345,639 347, 464 349, 363 Outstanding Balance 8,640,967 8,686,606 8,734,070 8,783, 433 45,639 47, 464 49, 363 What is the book value of the bonds as of December 31, 2022? $8,783,433 O $8,686,606....
11) Discount-Mart issues $10 million in bonds on January 1, 2018. The bonds have a ten-year term and pay interest semiannually on June 30 and December 31 each year. Below is a partial bond amortization schedule for the bonds: Increase in Carrying Value Cash Paid Date Interest Expense Carrying Value $8,640,967 8,686,606 8,734,070 8,783,433 8,834,770 1/1/2018 6/30/2018 12/31/2018 6/30/2019 12/31/2019 $300,000$345,639 300,000 300,000 300,000 $45,639 47,464 49,363 51,337 347,464 349,363 351,337 What is the interest expense on the bonds in...
February 4, 2019 1. On January 1, 2018, Piper Co. issued ten-year bonds with a face value of $5,000,000 and a stated interest rate of 10%, payable semiannually on June 30 and December 31. The bonds were sold to yield 12%. nstructions (a) Calculate the issue price of the bonds. Show all calculations. Also make the journal entry with an explanation. (b) Prepare the amortization table for 2018, Jan 1, June 30 and December 31. Assume that amortization is recorded...
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