PLEASE ANSWER ALL QUESTIONS
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Your investment department has researched possible investments in corporate debt securities. Among the available investments are the following $100 million bond issues, each dated January 1, 2018. Prices were determined by underwriters at different times during the last few weeks. (EV of $1. PV of $1. EVA of $1. PVA of $1. EVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) Stated Rate Company 1. 88 Corp. 2. 0D Corp. 3. GG Corp. Bond Price $106 million $100 million $ 92 million 17% 16x 15% Each of the bond issues matures on December 31, 2037, and pays interest semiannually on June 30 and December 31. For bonds of similar risk and maturity, the market yield at January 1, 2018, is 16%. Required: Other things being equal, which of the bond issues offers the most attractive investment opportunity if it can be purchased at the prices stated? The least attractive? Most aftractive investment Least aftractive investment June 30, 2038 (20 years). The market yield for bonds of similar risk and maturity is 10%. Interest is paid semiannually on December 31 and June 30. The Gorman Group issued $990,000 of 11% bonds on June 30, 2018, for $1,074,942. The bonds were dated on June 30 and mature on Required: Complete the below table to record the company's journal entry. 1. to 3. Prepare the journal entry to record their issuance by The Gorman Group on June 30, 2018, interest on December 31, 2018 and interest on June 30, 2019 (at the effective rate). Complete this question by entering your answers in the tabs below. Calculation Reg 1 to 3 Complete the below table to record the company's journal entry. (Round intermediate calculations and final answers to the nearest whole dollar. Enter interest rate to 1 decimal place. (I.e. 0.123 should be entered as 12.3).) December 31, 2018 Interest expense Interest Rate Amount Total Cash %3D Amortization of premium on bonds June 30, 2019 Amount Interest Rate Total Interest expense Cash %3D Amortization of premium on bonds K Calculation Reg 1 to 3 > Required: Complete the below table to record the company's Journal entry. 1. to 3. Prepare the journal entry to record their issuance by The Gorman Group on June 30, 2018, interest on December 31, 2018 and interest on June 30, 2019 (at the effective rate). Complete this question by entering your answers in the tabs below. Req 1 to 3 Calculation Prepare the journal entry to record their issuance by The Gorman Group on June 30, 2018, interest on December 31, 2018 and interest on June 30, 2019 (at the effective rate). (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round intermediate calculations and final answers to the nearest whole dollar.) View transaction list Journal entry worksheet 2 Record the issuance of the bond on June 30, 2018. Note: Enter debits before credits. Date General Journal Debit Credit June 30. 2018 Recoed entry Clear entry View general journal
