Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

can you please include and show work Problem 14-10A ayio) Effective-interest-rate method and bond retirement tee issues 4180,o00 of 11%, three-year bonds dated january 1,

image text in transcribed
image text in transcribed
can you please include and show work
image text in transcribed
image text in transcribed
Problem 14-10A ayio) Effective-interest-rate method and bond retirement tee issues 4180,o00 of 11%, three-year bonds dated january 1, 201y, that pay interest semiannually on June 30 and becember 31. They are issued at 4184,566 Their market rate is 10% at the issue date. ke uses the effective interest rate method to avortize discounts and premiums 1. Prepare the January 1, 2017 journal entry to record the bonds' issuance. DATE ACCOUNT TITLE DEBIT REDIT Determine total interest expense over the life of the bond. 2. 3. Amortization schedule-(See solution posted on D2L) 4. Prepare the journal entries to record the first two interest payments. DATE ACCOUNT TITLE DEBIT REDIT Bonds Payable Problem 14-10A (cont.) (23"edion) 5. Prepare the journal entry to record the bonds' retirement on January 1. 2019 at 98 CREDIT ACCOUNT TITLE DATE DEBIT inle h What if only 75 percent of the bond was retired at 982 Assume that the market rate on January 1, 2017 is 12% instead of 10 %. Without presenting numbers. describe how this change affects the amounts reported on Ike's financial statements. 6 Present Value of an Ordinary Annuity of $1 TABLE 4 (1+ PVA i 10.0 % 11.0 % 12.0 % 20.0 % ni 1.0 % 3.5 % 1.5% 3.0% 8.0% 9.0% 2.0% 2.5% 4.0% 4.5% 5.0% 5.5% 6.0% 7.0% 099010 0.98522 0.98039 097561 0.97087 0.96618 096154 0.95694 095238 0.94787 0.94340 0.93458 092593 091743 0.90909 0.90090 0.89286 0.83333 2 1.97040 1.95588 1.94156 1.92742 1.91347 1.89969 1.88609 1.87267 185941 1.84632 1.83339 1.80802 1.78326 175911 1.73554 1.71252 1.69005 1.52778 3 294099 2.91220 288388 2.85602 2.82861 2.80164 2.77509 2.74896 2.72325 2.69793 2.67301 2.62432 257710 253129 2.48685 2.44371 2.40183 2.10648 4 390197 3.85438 3.80773 3.76197 3.71710 3.67308 3.62990 3.58753 3.54595 3.50515 3.46511 S 4.85343 4.78264 4.71346 4.64583 4.57971 4.51505 4.45182 4.38998 4.32948 427028 4.21236 3.38721 331213 323972 3.16987 3.10245 3.03735 2.58873 4.10020 399271 3.88965 3.79079 3.69590 3.60478 2.99061 6 5.79548 5.69719 5.60143 5.50813 5.41719 5.32855 5.24214 5.15787 5.07569 499553 4.91732 4.76654 4.62288 448592 4.35526 423054 4.11141 3.32551 7 672819 659821 6.47199 6.34939 623028 6.11454 6.00205 5.89270 5.78637 5.68297 5.58238 5.38929 5.20637 5.03295 4.86842 471220 456376 3.60459 8 7.65168 7 48593 7.32548 7.17014 7.01969 6.87396 673274 6.59589 6.46321 6.33457 6.20979 5.97130 5.74664 5.53482 5.33493 5.14612 4.96764 3.83716 9 8.56602 836052 8.16224 7.97087 7.78611 7.60769 743533 7.26879 7.10782 695220 680169 651523 624689 599525 5.75902 5.53705 5.32825 403097 10 947130 9.22218 8.98259 8.75206 8.53020 8.31661 8.11090 7.91272 7.72173 753763 7.36009 7.02358 671008 641766 6.14457 5.88923 565022 4.19247 11 10.36763 10.07112 9.78685 9.51421 9.25262 9.00155 8.76048 8.52892 8.30641 8.09254 7.88687 749867 7.13896 680519 6.49506 620652 5.93770 4.32706 12 11.25508 10.90751 10.57534 10.25776 9.95400 966333 9.38507 9.11858 8.86325 8.61852 8.38384 7.94269 7.536o8 7.16073 681369 6.49236 6.19437 443922 13 12.13374 11.73153 11.34837 10.98319 10.63496 10.30274 9.98565 9.68285 9.39357 9.11708 8.85268 8.35765 7.90378 7.48690 7.10336 674987 642355 4.53268 14 13.00370 12.54338 12.10625 11.69091 11.29607 10.92052 10.56312 10.22283 9.89864 9.58965 9.29498 8.74547 824424 7.78615 7.36669 6.98187 662817 461057 15 13.86505 13.34323 12.84926 12.38138 11.93794 11.51741 11.11839 10.73955 10.37966 10.03758 9.71225 9.10791 8.55948 806069 7.60608 7.19087 681086 4.67547 16 14.71787 14.13126 13.57771 13.05500 12.56110 12.09412 11.65230 11.23402 10.83777 10.46216 10.10590 9.44665 8.85137 8.31256 7.82371 7.37916 697399 4.72956 17 15.56225 14.90765 14.29187 13.71220 13.16612 12.65132 12.16567 11.70719 11.27407 10.86461 10.47726 9.76322 9.12164 8.54363 8.02155 7.54879 7.11963 4.77463 18 16.39827 15.67256 14.99203 14.35336 13.75351 13.18968 12.65930 12.15999 11.68959 11.24607 10.82760 10.05909 9.37189 875563 8.20141 7.70162 7.24967 4.81219 19 17.22601 16.42617 15.67846 14.97889 14.32380 13.70984 13.13394 12.59329 12.08532 11.60765 11.15812 10.33560 9.60360 895011 8.36492 783929 7.36578 4.84350 20 18.04555 17.16864 16.35143 15.58916 14.87747 14.21240 13.59033 13.00794 12.46221 11.95038 11.46992 10.59401 9.81815 9.12855 8.51356 7.96333 7.46944 4.86958 21 18.85698 17.90014 17.01121 16.18455 15.41502 14.69797 14.02916 13.40472 12.82115 12.27524 11.76408 10.83553 10.01680 929224 8.64869 8.07507 7.56200 4.89132 25 2202316 20.71961 19.52346 18.42438 17.41315 16.48151 15.62208 14.82821 14.09394 13.41393 12.78336 11.65358 10.67478 9.82258 9.07704 842174 7.84314 4.94759 30 25.80771 24.01584 22.39646 20.93029 19.60044 18.39205 17.29203 16.28889 15.37245 14.53375 13.76483 12.40904 11.25778 10.27365 9.42691 8.69379 8.05518 4.97894 40 32.83469 29.91585 27.35548 25.10278 23.11477 21.35507 19.79277 18.40158 17.15909 16.04612 15.04630 13.33171 11.92461 10.75736 9.77905 8.95105 8.24378 499660 Present Value of $1 TABLE 2 $1 PV (1+ 3.0 % 20.0 % w 1.0% 20% 5.0% 7.0% 1.5% 2.5% 3.5% 4.0% 45% 5.5% 6.0% 8.0% 9.0% 10.0% 11.0% 12.0% 1 0.99010 0.98522 0.98039 0.97561 0.97087 0.96618 0.96154 0.95694 0.95238 0.94787 094340 0.93458 0.92593 0.91743 0.90909 0.90090 0.89286 0.83333 2 0.98030 0.97066 0.96117 0.95181 0.94260 0.93351 0.92456 0.91573 090703 0.89845 0.89000 0.87344 0.85734 0.84168 0.82645 0.81162 0.79719 0.69444 3 0.97059 0.95632 0.94232 092860 0.91514 0.90194 0.88900 0.87630 0.86384 0.85161 0.83962 0.81630 0.79383 0.77218 075131 0.73119 0.71178 0.57870 4 0.96098 0.94218 0.92385 090595 0.88849 0.87144 0.85480 0.83856 0.82270 0.80722 079209 0.76290 0.73503 0.70843 0.68301 0.65873 0.63552 0.48225 5 0.95147 0.92826 090573 0.88385 0.86261 0.84197 0.82193 080245 0.78353 0.76513 074726 0.71299 0.68058 0.64993 0.62092 0.59345 0.56743 0.40188 6 0.94205 0.91454 0.88797 0.86230 0.83748 0.81350 0.79031 0.76790 0.74622 0.72525 070496 066634 0.63017 0.59627 056447 0.53464 0.50663 0.33490 0.27908 0.23257 7 0.93272 090103 0.87056 0.84127 081309 0.78599 0.75992 0.73483 0.71068 068744 066506 0.62275 0.58349 054703 0.51316 0.48166 0.45235 8 0.92348 0.88771 085349 0.82075 0.78941 0.75941 073069 0.70319 0.67684 065160 062741 0.58201 054027 050187 046651 0.43393 0.40388 9 0.91434 0.87459 083676 0.80073 076642 0.73373 0.70259 0.67290 0.64461 0.61763 059190 0.54393 0.50025 0.46043 0.42410 0.39092 0.36061 0.19381 10 0.90529 0.86167 0.82035 0.78120 074409 0.70892 0.67556 064393 0.61391 058543 0.55839 0.50835 0.46319 042241 0.38554 0.35218 0.32197 0.16151 11 0.89632 0.84893 0.80426 0.76214 072242 0.68495 064958 0.61620 0.58468 0.55491 052679 047509 0.42888 0.38753 0.35049 0.31728 0.28748 0.13459 12 0.88745 0.83639 078849 0.74356 0.70138 0.66178 0.62460 0.58966 0.55684 0.52598 0.49697 0.44401 0.39711 0.35553 0.31863 0.28584 0.25668 0.11216 13 0.87866 0.82403 077303 0.72542 0.68095 0.63940 060057 0.56427 053032 0.49856 046884 041496 0.36770 0.32618 0.28966 0.25751 0.22917 0.09346 14 086996 081185 0.75788 0.70773 066112 061778 0.57748 0.53997 0.50507 047257 044230 0.38782 0.34046 029925 0.26333 0.23199 0.20462 0.07789 0.06491 15 0.86135 079985 0.74301 0.69047 064186 0.59689 0.55526 0.51672 0.48102 044793 041727 0.36245 0.31524 027454 0.23939 0.20900 0.18270 0.05409 16 0.85282 0.78803 0.72845 0.67362 062317 0.57671 0.53391 0.49447 0.45811 042458 0.39365 0.33873 0.29189 0.25187 021763 0.18829 0.16312 17 0.84438 0.77639 0.71416 0.65720 0.60502 0.55720 0.51337 0.47318 0.43630 0.40245 0.37136 0.31657 0.27027 023107 0.19784 0.16963 0.14564 004507 18 0.83602 0.76491 0.70016 0.64117 058739 0.53836 049363 0.45280 0.41552 0.38147 0.35034 0.29586 0.25025 021199 0.17986 0.15282 0.13004 0.03756 19 0.82774 075361 068643 0.62553 0.57029 0.52016 0.47464 0.43330 0.39573 036158 0.33051 0.27651 0.23171 0.19449 0.16351 0.13768 0.11611 0.03130 0.02608 20 0.81954 0.74247 0.67297 0.61027 0.55368 0.50257 045639 0.41464 0.37689 0.34273 031180 0.25842 0.21455 0.17843 0.14864 0.12403 0.10367 21 0.81143 0.73150 065978 0.59539 0.53755 0.48557 0.43883 0.39679 0.35894 0.32486 0.29416 0.24151 0.19866 0.16370 0.13513 0.11174 0.09256 0.02174 24 0.78757 0.69954 0.62172 0.55288 0.49193 0.43796 0.39012 0.34770 0.31007 0.27666 0.24698 0.19715 0.15770 0.12640 0.10153 0.08170 0.06588 0.01258 25 077977 0.68921 0.60953 0.53939 0.47761 0.42315 0.37512 0.33273 029530 0.26223 023300 0.18425 0.14602 0.11597 0.09230 0.07361 0.05882 0.01048 28 0.75684 0.65910 0.57437 0.50088 0.43708 0.38165 0.33348 0.29157 025509 0.22332 0.19563 0.15040 0.11591 0.08955 0.06934 0.05382 0.04187 0.00607 29 0.74934 0.64936 0.56311 0.48866 0.42435 0.36875 0.32065 0.27902 0.24295 0.21168 0.18456 0.14056 0.10733 0.08215 0.06304 0.04849 0.03738 0.00506 30 0.74192 0.63976 0.55207 0.47674 0.41199 0.35628 0.30832 026700 0.23138 0.20064 0.17411 0.13137 0.09938 0.07537 0.05731 0.04368 0.03338 0.00421 31 073458 0.63031 0.54125 0.46511 0.39999 0.34423 0.29646 0.25550 0.22036 0.19018 0.16425 0.12277 0.09202 0.06915 0.05210 0.03935 0.02980 0.00351 40 067165 0.55126 0.45289 0.37243 0.30656 0.25257 0.20829 0.17193 0.14205 0.11746 0.09722 0.06678 0.04603 0.03184 0.02209 0.01538 0.01075 0.00068

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

Recommended Textbook for

Management Accounting

Authors: Will Seal, Carsten Rohde, Ray Garrison, Eric Noreen

6th Edition

0077185536, 978-0077185534

More Books

Students also viewed these Accounting questions

Question

3. Deal with less-severe problems later.

Answered: 1 week ago

Question

Why is job analysis considered to be a basic HR tool?

Answered: 1 week ago

Question

5.1 Define recruitment and describe the recruitment process.

Answered: 1 week ago