Question1:

Ultimate Butter Popcorn issues 5%, 15-year bonds with a face amount of $58,000. The market interest rate for bonds of similar risk and maturity is 5%. Interest is paid semiannually. At what price will the bonds issue? (FV of $1, PV of $1, FVA of $1, and PVA of $1) (Use appropriate factor(s) from the tables provided. Do not round interest rate factors. Round"Market interest rate" to 1 decimal place.)

Bond Characteristics	Amount
Face amount
Interest payment
Market interest rate
Periods to maturity
Issue price

Question 5:

Presented below is a partial amortization schedule for Discount Pizza.

(1)	(2)	(3)	(4)	(5)
Period	Cash Paid for Interest	Interest Expense	Increase in Carrying Value	Carrying Value
Issue date				$53,878
1	$1,740	$1,886	$146	54,024
2	1,740	1,891	151	54,175

1. & 2. Record the bond issue and first interest payment assuming the face value of bonds payable is $58,000. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

• Record the issuance of bond.
• Record the first interest payment.

Interest expense increases each period because the carrying value of the debt issued at a discount increases over time. T or F

Question 6:

On January 1, 2018, Frontier World issues $39.8 million of 8% bonds, due in 15 years, with interest payable semiannually on June 30 and December 31 each year. The proceeds will be used to build a new ride that combines a roller coaster, a water ride, a dark tunnel, and the great smell of outdoor barbeque, all in one ride.

Required: 1-a. If the market rate is 7%, calculate the issue price. (FV of $1, PV of $1, FVA of $1, and PVA of $1) (Use appropriate factor(s) from the tables provided. Do not round interest rate factors. Enter your answers in dollars not in millions. Round "Market interest rate" to 1 decimal place.)

Bond Characteristics	Amount
Face amount
INterest payment
market interest rate
periods to maturity
issue price

Question 8:

On January 1, 2018, Frontier World issues $39.8 million of 8% bonds, due in 15 years, with interest payable semiannually on June 30 and December 31 each year. The proceeds will be used to build a new ride that combines a roller coaster, a water ride, a dark tunnel, and the great smell of outdoor barbeque, all in one ride.

3-a. If the market rate is 9%, calculate the issue price. (FV of $1, PV of $1, FVA of $1, and PVA of $1) (Use appropriate factor(s) from the tables provided. Do not round interest rate factors. Enter your answers in dollars not in millions. Round "Market interest rate" to 1 decimal place.)

Bond Characteristics	Amount
Face amount
INterest payment
market interest rate
periods to maturity
issue price

Question 9:

On January 1, 2018, Splash City issues $450,000 of 7% bonds, due in 10 years, with interest payable semiannually on June 30 and December 31 each year. Assuming the market interest rate on the issue date is 8%, the bonds will issue at $419,423.

Required: 1. Complete the first three rows of an amortization table.

Date	Cash paid	interest expense	increase in carrying value	carrying value
1/1/18
6/30/18
12/31/18

Question 10:

On January 1, 2018, Splash City issues $450,000 of 7% bonds, due in 10 years, with interest payable semiannually on June 30 and December 31 each year. Assuming the market interest rate on the issue date is 8%, the bonds will issue at $419,423.

2. Record the bond issue on January 1, 2018, and the first two semiannual interest payments on June 30, 2018, and December 31, 2018. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

• Record the bond issue.

• Record the first semiannual interest payment

• Record the second semiannual interest payment.

Question 7:

On January 1, 2018, Frontier World issues $39.8 million of 8% bonds, due in 15 years, with interest payable semiannually on June 30 and December 31 each year. The proceeds will be used to build a new ride that combines a roller coaster, a water ride, a dark tunnel, and the great smell of outdoor barbeque, all in one ride.

2-a. If the market rate is 8%, calculate the issue price. (FV of $1, PV of $1, FVA of $1, and PVA of $1) (Use appropriate factor(s) from the tables provided. Do not round interest rate factors. Enter your answers in dollars not in millions. Round "Market interest rate" to 1 decimal place.)

Bond Characteristics	Amount
Face amount
INterest payment
market interest rate
periods to maturity
issue price