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just problem 3 PROBLEM 1 On January 1, 2019 the first day of its fiscal year, Monitors Corporation issued $405,000 of nine-year, 6% bonds when
just problem 3
PROBLEM 1 On January 1, 2019 the first day of its fiscal year, Monitors Corporation issued $405,000 of nine-year, 6% bonds when the market rate was 5%, with interest payable semiannually, on June 30 and December 31. The company uses the effective interest rate method to amortize bond discounts and premiums. Calculate the proceeds from the sale of the bonds (selling price) and write your answer on the line provided. Use the present value tables provided in class (also posted in our course D2L shell with the CH14 materials) to make the calculation. (Use the numbers exactly as they appear in the table.) Round to the nearest whole dollar when necessary. You must show your work for any credit to be awarded. PROBLEM 2 On January 1, 2019, Pens, Inc. issued a 2% installment note to Green Bank in the amount of $190,000. The note requires annual payments for 4 years. Determine the amount of the annual payment, and write your answer on this line. Round to the nearest whole dollar when necessary. You must show your work in the space provided below for any credit to be awarded. Use the present value table provided in class (also posted in our course D2L shell with the CH14 materials) to make the calculation. (Use the numbers exactly as they appear in the table.) PROBLEM 3 Bamboo Corporation produces and sells rock climbing equipment. On February 28, Bamboo Corporation had the following accounts and balances: bonds payable $180.000 Discount on bonds payable 19,000 On that day, Bamboo Corporation redeemed one quarter of the bonds in the market at 101. Prepare the journal entry to record the redemption. Show your calculation in the space provided below the journal entry lines for any credit to be awarded. Round to the nearest whole dollar when necessary Step by Step Solution
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