Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

d Search Connor ew Help Acrobat 21 AaBbCcL AaBbc AaBbCel AaBbce AaBbCcD Emphasis Heading 1 1 Normal Strong Subtitle Find c Replace Select Create and

image text in transcribed
image text in transcribed
image text in transcribed
d Search Connor ew Help Acrobat 21 AaBbCcL AaBbc AaBbCel AaBbce AaBbCcD Emphasis Heading 1 1 Normal Strong Subtitle Find c Replace Select Create and Share Adobe PDF Styles Editing Adobe Acre Bonds XYX Company is preparing to issue $1,000,000 in 8% bonds that pay interest semi-annually and mature in five years. 1. Interest rates for companies with XYZ's risk profile have fallen following the bond registration. If the market will accept a 6% rate, what should XYZ expect to receive for their bonds? Prepare XYZ's journal entry for the issue of the bonds on 01/01/2018. Prepare XYZ's journal entry for the first interest payment on 06/30/2018. 2. Interest rates for companies with XYZ's risk profile have risen following the bond registration. If the market will accept a 10% rate, what should XYZ expect to receive for their bonds? Prepare XYZ's journal entry for the issue of the bonds on 01/01/2018. Prepare XYZ's journal entry for the first interest payment on 06/30/2018 3. Assuming that 8% is a reasonable rate, what should XYZ expect to receive for their bonds if they carried a zero coupon rate?? Prepare XYZ's journal entry for the issue of the bonds on 01/01/2018 Prepare XYZ's journal entry for the first interest payment on 06/30/2018 Connor iew Help Acrobat AaBbCcL AaBbc AaBbcci AaBbCel AaBbCcD Emphasis Heading 1 1 Normal Strong Subtitle Find Replace Select Create and Shar Adobe PDF Styles Editing Adobe Ac Personal Retirement Problem Calculate the annual deposits that your friend would have to make to achieve the following: Your friend would like to draw 75% of her final year's salary level at the beginning of each year for 20 years following her retirement at age 65. You believe she can earn 7% on her investments. She is 25 years old and you believe she will receive average raises of 6% for the next 40 years, i.e., she will get 39 raises before retiring. She currently earns $50,000 per year. What will be her final wage level? How much would she like to receive at the beginning of each retirement year? How much will she need on the day she retires? How much would she need to invest at the end of each year? Note, her last deposit and first withdrawal will take place on the same day under this case. If your friend wanted to make all of her contributions over the first 25 years of her remaining working life, but collect the same amount in each retirement year starting at age 65, how much would she have to invest at the end of each year to achieve the amount needed in question 5? If your friend wanted to make all of her contributions over the last 25 years of her remaining working life, how much would she have to invest at the end of each year? 6. Focus EA Emphasis Heading 1 1 Normal Strong Subtitle c Replace Select Cre Styles Editing Installment Sale ABC Company sells a building to XYZ on 01/01/2016. The sales price is $500,000. XYZ is to make a $50,000 down payment and pay for the remainder over 10 years. The stated interest rate of 8% is reasonable and the payments must be made quarterly. ABC had paid $475,000 for the building and taken $95,000 in depreciation before the sale. 1. Calculate the quarterly installment payments. 2. Prepare ABC's joumal entry to record the sale on 01/01/2016. Prepare XYZ's joumal entry to record the first quarterly payment on 04/01/2016. Prepare XYZ's joumal entry to record the second quarterly payment on 07/01/2016 Focus

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

Data Analytics For Auditing Using ACL

Authors: Alvin A. Arens

4th Edition

0912503629, 978-0912503622

More Books

Students also viewed these Accounting questions

Question

Discuss global compensation practices.

Answered: 1 week ago

Question

Summarize global staffing practices.

Answered: 1 week ago

Question

Discuss the evolution of global business.

Answered: 1 week ago