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Appendix 1 EX 11-13 Present value of bonds payable; premium Moss Co. issued $42,000,000 of five-year, 11% bonds, with interest payable semiannually, at a market

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Appendix 1 EX 11-13 Present value of bonds payable; premium Moss Co. issued $42,000,000 of five-year, 11% bonds, with interest payable semiannually, at a market effective interest rate of 9%. Determine the present value of the bonds payable using the present value tables in Exhibits 5 and 7. (Round to the nearest dollar.) 23.959 Appendix 2 EX 11-14 Amortize discount by interest method On the first day of its fiscal year, Ebert Company issued $50,000,000 of 10-year, 7% bonds to finance its operations. Interest is payable semiannually. The bonds were issued at a market (effective) interest rate of 9%, resulting in Ebert receiving cash of $43,495,895. The company uses the interest method. A. Journalize the entries to record the following: 1. Sale of the bonds. 2. First semiannual interest payment, including amortization of discount. (Round to the nearest dollar.) 3. Second semiannual interest payment, including amortization of discount. (Round to the nearest dollar.) B. Compute the amount of the bond interest expense for the first year. Explain why the company was able to issue the bonds for only $43,495,895 rathe than for the face amount of $50,000,000. C. Appendix 2 EX 11-15 Amortize premium by interest method Lanarte to annliance manufacturers. On January 1, Shunda issue Appendix 1 EX 11-13 Present value of bonds payable; premium Moss Co. issued $42,000,000 of five-year, 11% bonds, with interest payable semiannually, market effective interest rate of 9%. Determine the present value of the bonds payable using the present value tables in Exhibits 5 and 7. (Round to the nearest dollar.) Appendix 2 EX 11-14 Amortize discount by interest method On the first day of its fiscal year, Ebert Company issued $50,000,000 of 10-year, 7% bonds to finance its operations. Interest is payable semiannually. The bonds were issued at a market (effective) interest rate of 9%, resulting in Ebert receiving cash of $43,495,895. The company uses the interest method. A. Journalize the entries to record the following: 1. Sale of the bonds. 2. First semiannual interest payment, including amortization of discount. (Round to the nearest dollar.) 3. Second semiannual interest payment, including amortization of discount. (Round to the nearest dollar.) B. Compute the amount of the bond interest expense for the first year. Explain why the company was able to issue the bonds for only $43,495,895 rather than for the face amount of $50,000,000. Appendix 2 EX 11-15 Amortize premium by interest method Shunda Corporation wholesales parts to appliance manufacturers. On January 1, Shunda issued 0% honds at a market (effective) interest rate of 7%, receiving cash

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