Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Bringham Company issues bonds with a par value of $690.000. The bonds mature in 7 years and pay 7% annual interest in semiannual payments. The

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
Bringham Company issues bonds with a par value of $690.000. The bonds mature in 7 years and pay 7% annual interest in semiannual payments. The annual market rate for the bonds is 10% Table 3.1. Table B. 2. Table 3.3. and Table 34 (Use appropriate factor(s) from the tables provided.) 1. Compute the price of the bonds as of their issue date. 2. Prepare the journal entry to record the bonds' Issuance. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Compute the price of the bonds as of their issue date. (Round all table values to 4 decimal places, and use the rounded table values in calculations. Round Intermediate calculations to the nearest dollar amount.) Table Values are based on Paraurtue Price of bonds Quatro Co. Issues bonds dated January 1, 2019, with a par value of $780,000. The bonds' annual contract rate is 13% and interest is paid semiannually on June 30 and December 31. The bonds mature in three years. The annual market rate at the date of issuance is 12%, and the bonds are sold for $799.207 1. What is the amount of the premium on these bonds at issuance? 2. How much total bond Interest expense will be recognized over the life of these bonds? 3. Prepare a straight-line amortization table for these bonds. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required Prepare a straight line amortization table for these bonds. (Round your intermediate calculations to the nearest dollar amount.) S ales Unamorired Period End Premium Carrying Value 01012010 08 30 2010 12/31/2010 06/30/2020 12/31/2020 08/302001 11 Tano Company issues bonds with a par value of $97,000 on January 1, 2019. The bonds' annual contract rate is 10% and interest is paid semiannually on June 30 and December 31 The bonds mature in three years. The annual market rate at the date of issuance is 12%, and the bonds are sold for $92,234 1. What is the amount of the discount on these bonds at issuance? 2. How much total bond interest expense will be recognized over the life of these bonds? 3. Prepare a straight-line amortization table for these bonds Complete this question by entering your answers in the tabs below. Required Required a How much total bond intenst expense will be recognized over the life of these bonds? Total Bond Interest Expense Over Life of Bonds: Amount repaid: payments of Par value at maturity Totalrepaid Less amount borrowed Total bond interest expense Required Required 3 > Tano Company issues bonds with a par value of $97.000 on January 1 2019. The bonds' annual contract rate is 10%, and interest is paid semiannually on June 30 and December 31. The bonds mature in three years. The annual market rate at the date of issuance is 12%, and the bonds are sold for $92,234 1. What is the amount of the discount on these bonds at issuance? 2. How much total bond interest expense will be recognized over the life of these bonds? 3. Prepare a straight-line amortization table for these bonds. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Prepare a straight-line amortization table for these bonds. (Round your intermediate calculations to the nearest dollar amount. Carrying Value Semiannual Period- Unamortized Discount 01/01/2010 06/30/2010 12/31/2010 06/30/2020 12/31/2020 05/30/2021 12/31/2021

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Accounting questions