Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

hi i just need the rest of this question please! On January 1, 2018 Agricultural Credit Union (ACU) issued 7%, 20-year bonds payable with face

hi i just need the rest of this question please!
image text in transcribed
image text in transcribed
image text in transcribed
On January 1, 2018 Agricultural Credit Union (ACU) issued 7%, 20-year bonds payable with face value of $900,000 The bonds pay inter Read the requirements Requirement 1. If the market interest rate is 5% when ACU issues its bonds will the bonds be priced at face value, at a premium, or at a The 7% bonds issued when the market interest rate is 5% will be priced at a premium They are attractive in this market, so investo Requirement 2. If the market interest rate is 9% when ACU issues its bonds, will the bonds be priced at face value, at a premium, or at a The 7% bonds issued when the market interest rate is 9% will be priced at a discount. They are unattractive in this market, so investo Requirement 3. The issue price of the bonds is 94 Journalize the bond transactions. (Assume bonds payable are amortized using the str Check your spelling carefully and do not abbreviate. Round your answers to the nearest whole dollar) a. Journalize the issuance of the bonds on January 1, 2018. Accounts and Explanation Date Debit Credit 2018 Jan 1 Choose from any list or enter any number in the input fields and then click Check Answer. parts remaininn nal 1. If the market interest rate is 5% when ACU issues its bonds, will the bonds be priced at face value, at a premium, or at a discount? Explain 2. If the market interest rate is 9% when ACU issues its bonds, will the bonds be priced at face value, at a premium, or at a discount? Explain 3. The issue price of the bonds is 94. Journalize the following bond transactions a. Issuance of the bonds on January 1, 2018 b. Payment of interest and amortization on June 30, 2018 C. Payment of interest and amortization on December 31, 2018 d. Retirement of the bond at maturity on December 31, 2037 assuming the last interest payment has already been recorded On January 1, 2018. Agricultural Credit Union (AC) sud 7 20-your bonds payable with face value of $900.000 The bonds pay intores on June 30 and December 31 Read the AB Requirement 1. if the market interest rate is 5% when AGU issues its bonds wil the bonds bo priced at face value, sta premium or at a discount? Explain The 'bonds issued when the mi ko interest rates will be priced at premium They are attractive in this markot, so investors will pay more than face value to acquitu Requirement 2. if the market interest rate is 9% when AGU issues is bonds will the bonds bo priced afface value at a premium or at a discount? Explain The bonds issued when the market interest rates will be priced at a discount They are unattractive in the market soinvestors will pay less than face vislue to acquire Requirement. The issue price of the bonds 194. Journalo the band transactions somo bonds payabs are amortized using the straight-line amortization method Record debih Check your spoting carefully and do not bruine Round your answers to the rest whole ole 3. Journace the cance of the bends on January 1, 2018 Date Accounts and Explanation Debit Credit 2018

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

Contemporary Auditing Issues And Cases

Authors: Michael Chris Knapp

3rd Edition

0538891173, 9780538891172

More Books

Students also viewed these Accounting questions