Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

When Patey Pontoons issued 8% bonds on January 1, 2021, with a face amount of $700,000, the market yield for bonds of similar risk and

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
When Patey Pontoons issued 8% bonds on January 1, 2021, with a face amount of $700,000, the market yield for bonds of similar risk and maturity was 9% The bonds mature December 31, 2024 14 years). Interest is paid semiannually on June 30 and December 31. (FV of $1. PV of $1. FVA of $1. PVA of $1. FVAD of $1 and PVAD of $i) (Use appropriate factor(s) from the tables provided) Required: 1. Determine the price of the bonds at January 1, 2021. 2. Prepare the journal entry to record their issuance by Patey on January 1, 2021 3. Prepare an amortization schedule that determines interest at the effective rate each period. 4. Prepare the journal entry to record interest on June 30, 2021 5. What is the amount related to the bonds that Patey will report in its balance sheet at December 31, 2021? 6. What is the amount related to the bonds that Patey will report in its Income statement for the year ended December 31, 2021? ignore Income taxes.) 7. Prepare the appropriate journal entries at maturity on December 31, 2024 Complete this question by entering your answers in the tabs below. Reg 1 Req2 Req3 Reg4 Reg 5 and 6 Reg 7 Determine the price of the bonds at January 1, 2021. (Round final answers to the nearest whole dollar) Table values are based on n. Amount Present Value Cash Flow Interest Principal Price of bonds Req2 > When Patey Pontoons issued 8% bond on January 1, 2021, with a face amount of $700,000, the market yield for bonds of similar risk and maturity was 9% The bonds mature December 31, 2024 (4 years). Interest is paid semiannually on June 30 and December 31. EV of $1. PV of $1. FVA of $1 PVA of $1. FVAD of $1 and PVAD of 5) (Use appropriate factor(s) from the tables provided) Required: 1. Determine the price of the bonds at January 1, 2021 2. Prepare the journal entry to record thelt issuance by Patey on January 1, 2021 3. Prepare an amortization schedule that determines interest at the effective rate each period 4. Prepare the journal entry to record interest on June 30, 2021 5. What is the amount related to the bonds that Patey will report in its balance sheet at December 31, 2021? 6. What is the amount related to the bonds that Patoy will report in its income statement for the year ended December 31, 2027 (Ignore income taxes) 7. Prepare the appropriate journal entes at maturity on December 31, 2024 Complete this question by entering your answers in the tabs below. Red R2 Req3 Reg Reg 5 and 6 Reg Prepare the journal entry to record their issuance by Patey on January 1, 2021. (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 Bat Journal entry worksheet When Patey Pontoons issued 8% bonds on January 1, 2021. with a face amount of $700,000, the market yield for bonds of similar risk and maturity was 9% The bonds mature December 31, 2024 (4 years). Interest is paid semiannually on June 30 and December 31 (EV of $1. PV of $. EVA of $1. PVA of $1. EVAD of $1 and PVAD of S) (Use appropriate factor(s) from the tables provided.) Required: 1. Determine the price of the bonds at January 1, 2021. 2. Prepare the journal entry to record their issuance by Patey on January 1, 2021 3. Prepare an amortization schedule that determines Interest at the effective rate each period. 4. Prepare the journal entry to record interest on June 30, 2021 5. What is the amount related to the bonds that Patey will report in its balance sheet at December 31, 2021? 6. What is the amount related to the bonds that Patey will report in its Income statement for the year ended December 31, 2021? (Ignore Income taxes) 7. Prepare the appropriate journal entries at maturity on December 31, 2024. Complete this question by entering your answers in the tabs below. Red Reg 2 Reg 3 Reg 4 Req5 and 6 Reg? Prepare an amortization schedule that determinas interest at the effective rate each period. (Round intermediate calculations and final answers to the nearest whole dollar.) Semiannual Interest Cash Interest Bond Interest Discount Period End Expense Amortization Carrying Value 01/01/2021 06/30/2021 12/31/2021 06/30/2022 12/31/2022 06/30/2023 12/31/2023 00/30/2024 12/31/2024 Total Record the interest expense on June 30, 2021 Noth General Jouma Debit Credit Ds June 30 2021 Macord entry Chaway View When Patey Pontoons issued 8% bonds on January 1, 2021, with a face amount of $700,000, the market yield for bonds of similar risk and maturity was 9% The bonds mature December 31, 2024 (4 years). Interest is paid semiannually on June 30 and December 31. (EV of $1. PV of $1. FVA of $1. PVA of $1. FVAD of $1 and PVAD of $5) (Use appropriate factor(s) from the tables provided.) Required: 1. Determine the price of the bonds at January 1 2021 2. Prepare the journal entry to record their issuance by Patey on January 1, 2021 3. Prepare an amortization schedule that determines Interest at the effective rate each period, 4. Prepare the Journal entry to record interest on June 30.2021 5. What is the amount related to the bonds that Patey will report In its balance sheet at December 31, 20213 6. What is the amount related to the bonds that Patey will report in its Income statement for the year ended December 31, 2021? (ignore income taxes.) 7. Prepare the appropriate journal entries at maturity on December 31, 2024. Complete this question by entering your answers in the tabs below. Re 1 Reg 2 Req3 Reg4 Req 5 and 6 Req? What is the amount(s) related to the bonds that Patey will report in its balance sheet at December 31, 2021 and income statement for the year ended December 31, 2021? (Ignore income taxes.) (Round intermediate calculations and final answers to the nearest whole dollar) 5. December 31, 2021 book value 6. Interest expense for 2021 When Patey Pontoons issued 8% bonds on January 1, 2021 , with a face amount of $700,000, the market yield for bonds of similar risk and maturity was 9% The bonds mature December 31, 2024 (4 years). Interest is paid semiannually on June 30 and December 31 EV of $1. PV of $1. FVA of $1. PVA of $1. FVAD of $1 and PVAD of Si (Use appropriate factor(s) from the tables provided) Required: 1. Determine the price of the bonds at January 1, 2021 2. Prepare the journal entry to record their issuance by Patey on January 1, 2021 3. Prepare an amortization schedule that determines Interest at the effective rate each period. 4. Prepare the journal entry to record interest on June 30, 2021 5. What is the amount related to the bonds that Patey will report in its balance sheet at December 31, 2021? 6. What is the amount related to the bonds that Patey will report in its Income statement for the year ended December 31, 2021? dgnore income taxes.) 7. Prepare the appropriate journal entries at maturity on December 31, 2024. Complete this question by entering your answers in the tabs below. Rit Reg2 Reg2 Regu Regs and Red Prepare the appropriate journal entries at maturity on December 31, 2024. (if no entry is required for a transaction event select " Journal entry required" th the first account field. Round intermediate calculations and tral answers to the nearest whole dollar) View transaction at Journal entry worksheet

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored 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

Budgeting And Financial Management For Nonprofit Organizations Using Money To Drive Mission Success

Authors: Lynne A. Weikart, Greg G. Chen, Edward M. Sermier

1st Edition

1608716937, 978-1608716937

More Books

Students also viewed these Accounting questions

Question

What are the different types of commercial damages?

Answered: 1 week ago

Question

=+How is CSR different from strategic CSR?

Answered: 1 week ago