Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

this is from Chapter 9. all the information i have been given to complete the problem is provided here. please do not tell me you

this is from Chapter 9. all the information i have been given to complete the problem is provided here. please do not tell me you need more information, because it is all here image text in transcribed
image text in transcribed
1 Use the Bond Daily Activity as a reference when completting this project 2 3 A company issues bonds with a par value of $1,500,000 on their issue date of January 1, 2018. 4 The bonds mature in ten years and pay 10% annual interest in two semiannual payments. 5 6 You will need the information on Tables A3.8 and A3.10 in Appendix 3 of your textbook 7 81) On the issue date, the market rate of interest is 10% a) Compute the price of the bonds on their issue (Round to the nearest dollar) b) Prepare the general joumal entry for the issuance of the bonds. c) Prepare the general joumal entry for the first (July 1, 2018, using straight line amortization) 12 payment. 13 9 10 11 14 15 Amount Factor PV 16 a) Present value of 1 due in periods at % Present value of an annuity for periods at Bond issue price % 17 18 19 20 b) 21 22 23 24 25 C) 26 27 28 29 30 31 2) On the issue date, the market rate of interest is 8% 32 a) Compute me price or me vones on the issue 33 (Round to the nearest dollar) 34 b) Prepare the general joumal entry for the issuance of the bonds. c) Prepare the general journal entry for the first (July 1, 2018, using straight line amortization) 35 payment. 36 37 Bond Project + A B D E D) Prepare the general jouma entry for the issuance of the bonds c) Prepare the general joumal entry for the first (July 1, 2018, using straight line amortization) payment. 35 36 37 38 39 a) 40 Present value of 1 due in periods at % Present value of an annuity for periods at Bond issue price % 41 42 43 b) 44 45 46 47 48 49 c) 50 51 52 53 54 55 56 3) On the issue date, the market rate of interest is 12% a) Compute the price of the bonds on their issue date, (Round to the nearest dollar) b) Prepare the general joumal entry for the issuance of the bonds. c) Prepare the general joumal entry for the first July 1, 2018, using straight line amortization) payment. 61 57 58 59 60 Present value of 1 due in periods at % Present value of an annuity for periods at Bond issue price % 62 63 64 a) 65 66 67 68 b) 69 70 71 72 73 74 ) 75 76 77 78 79 80 Bond Project +

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered 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

Accounting Principles

Authors: Jerry Weygandt, Paul Kimmel, Donald Kieso

12th edition

1119132223, 978-1-119-0944, 1118875052, 978-1119132226, 978-1118875056

Students also viewed these Accounting questions