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can a tutor help me solve the rest of my accounting homework please. Saverin Inc. produces and sells outdoor equipment. On July 1, 2016, Saverin

can a tutor help me solve the rest of my accounting homework please.

image text in transcribed Saverin Inc. produces and sells outdoor equipment. On July 1, 2016, Saverin Inc. issued $62,500,000 of 10-year, 9% bonds at a market (effective) interest rate of 8%, receiving cash of $66,747,178. Interest on the bonds is payable semiannually on December 31 and June 30. The fiscal year of the company is the calendar year. Required: 1. Journalize the entry to record the amount of cash proceeds from the issuance of the bonds on July 1, 2016.* 2. Journalize the entries to record the following:* a. The first semiannual interest payment on December 31, 2016, and the amortization of the bond premium, using the straight-line method. (Round to the nearest dollar.) b. The interest payment on June 30, 2017, and the amortization of the bond premium, using the straight-line method. (Round to the nearest dollar.) 3. Determine the total interest expense for 2016. [9%*62,500,000]/2 - [4,247,178/20]=2,600,141.1 4. Will the bond proceeds always be greater than the face amount of the bonds when the contract rate is greater than the market rate of interest? Yes it will as the present value of it proceeds(coupons and maturity values) will be greater than face amount 5. Compute the price of $66,747,178 received for the bonds by using the tables shown in Present Value Tables. (Round to the nearest dollar.) N=10*2=20 Coupons =9%*1000/2=45 YTm=8%/2=4% Price=45*[1-1/1.04^20]/0.04 +1000/1.04^20=1067.954848 *Be sure to include the year in the date for the entries. Refer to the Chart of Accounts for exact wording of account titles. 1. and 2. Journalize the entries to record the transactions. Be sure to include the year in the date for the entries. Refer to the Chart of Accounts for exact wording of account titles. Question not attempted. PAGE 10 JOURNAL Score: 0/112 DATE 1 1 july / 2016 2 3 4 31/ 12/16 5 8 9 10 11 12 13 14 15 16 17 18 cash DEBIT 30/ 06/2017 CREDIT 66,747,178 bond payable 62,500,000 bond premium 4,247,178 interest expense 2,600,141.1 premiumon bond 212,358.9 csh 6 7 DESCRIPTION POST. REF. 2,812,500 interest expense 2,600,141.1 premiumon bond 212,358.9 cash 2,812,500

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