ne bi MIDI 5.Don, wwrsor ACCANTINA NUNTA 11. Dumber 2004 FIERS Cucu Op de produse la di del Abwe CENIK S, SCI, SE DHI Frie STAR WARS 1 Fox Intera preminoras wi In Win 15 in 2. Se on nimaton DOM W porce of the bons? ..OCO Suecosts were swanden er med L211, What as wesome/.scouting Scents use to record the sky 4. In prace was dois more contin pricing of red court or premium Expert Non-narbanng debt While regardlywer forberedelse the fol Internet in perthy That we tour wiki HR Bandarining se 3036 5976.000 Cuares war's The 20 caur Dr. Hamson, in part, because she recent researca este ne the pricing ceredzot out of ine with the market weer the increasies being charged cument for seret porches se ei este dea of purchasing the nature w that I YOUCESCUDOS D. Harsonne puce da mi ne ascom ca. Real 1. An adalah 2. Assume the market role of interest at the time for this tpe of transaction et what amount should be read the sourced Nursinhoud here the style Bond Case The following appeared in the January 1, 2021, issue of the Up2Date Financial & Accounting Times The announcement describe below is not an offer of securities for sale or an offer to buy securities. January 1, 2021 New Issue $550.000.000 AWESOME ACCOUNTING STUDENTS 8.15% Debentures Due October 1, 2031 Price 98.90% Copies of the prospectus and the related prospectus supplement may be obtained from such of the undersigned as may legally offer these securities under applicable securities laws. Carrington & Sweeney Inc. Strawser, Strawser, & England Inc Lynch & Mudge, Inc Quarles & Ameen Inc. Required 1. Based on the information provided in the announcement, were the bonds issued at a premium or discount? a. Is the market rate of interest higher or lower relative to the 8.15% indicated? 2. Based on the information provided what is the soling price of the bonds? 3. If debt issue costs were $50.000 and the bonds were issued on an January 1 2021, what entry did Awesome Accounting Students use to record the sale? 4. In practice, what do you think is a more common pricing of bonds (discount or premium)? Explain why? Non-interest-bearing debt While reading a recent issue of Dental Digest, Dr. Gabi Harris noticed an ad for a new pano she had been interested in purchasing. The ad offered the pano under the following terms Pano-tastic Imaging Model - BGSE $375,000 zero interest loan Quarterly payments of $18,000 for 5 years The ad captured Dr. Harris attention, in part, because she recently researched pano machines and the pricing seemed a bit out of line with the market, however the interest rates being charged currently for asset purchases seemed excessive. She likes the idea of purchasing the machine without incurring interest You are asked to advise Dr. Harris on her purchase of the Pano-tastic Imaging machine described in the ad Required 1. Are there really zero interest loans? Explain? 2. Assume the market rate of interest at the time for this type of transaction is 10%. At what amount should he record the asset purchased? At what amount should he record the liability used to purchase it? 2. Based on the information provided what is the soling price of the bonds? 3. If debt issue costs were $50.000 and the bonds were issued on an January 1 2021, what entry did Awesome Accounting Students use to record the sale? 4. In practice, what do you think is a more common pricing of bonds (discount or premium)? Explain why? Non-interest-bearing debt While reading a recent issue of Dental Digest, Dr. Gabi Harris noticed an ad for a new pano she had been interested in purchasing. The ad offered the pano under the following terms Pano-tastic Imaging Model - BGSE $375,000 zero interest loan Quarterly payments of $18,000 for 5 years The ad captured Dr. Harris attention, in part, because she recently researched pano machines and the pricing seemed a bit out of line with the market, however the interest rates being charged currently for asset purchases seemed excessive. She likes the idea of purchasing the machine without incurring interest You are asked to advise Dr. Harris on her purchase of the Pano-tastic Imaging machine described in the ad Required 1. Are there really zero interest loans? Explain? 2. Assume the market rate of interest at the time for this type of transaction is 10%. At what amount should he record the asset purchased? At what amount should he record the liability used to purchase it