User Account

All Pages

Determine the price of the bonds at january

Assignment Help Accounting Basics
Reference no: EM132461766

When Patey Pontoons issued 10% bonds on January 1, 2021, with a face amount of $560,000, the market yield for bonds of similar risk and maturity was 11%. The bonds mature December 31, 2024 (4 years). Interest is paid semiannually on June 30 and December 31. (FV of $1, PV of $1, EVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.)

Required:

Question 1. Determine the price of the bonds at January 1, 2021.

Question 2. Prepare the journal entry to record their issuance by Patey on January 1, 2021.

Question 3. Prepare an amortization schedule that determines interest at the effective rate each period.

Question 4. Prepare the journal entry to record interest on June 30, 2021.

Question 5. What is the amount related to the bonds that Patey will report in its balance sheet at December 31, 2021?

Question 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.)

Question 7. Prepare the appropriate journal entries at maturity on December 31, 2024.

Req 1

Rep 2

Req 3

Req 4

Req 5 and 6

Req 7

Table values are based on:

 

 

 

 

 

 

 

 

Cash Flow

Amount

 

Present Value

Interest Principal

.

 

 

I.

 

 

Price of bonds

 

 

 

 

Reference no: EM132461766

Questions Cloud

Calculate the population mean : Consider the following frequency distribution. Class Frequency 2 up to 4 20 4 up to 6 60 6 up to 8 80 8 up to 10 20
What is the fractional reserve system : How do each of the Fed's tools work? What is the fractional reserve system, and how does it work in relation to the Fed? Review the Federal Reserve System.
Calculate the confidence interval of psychologist : A psychologist is interested in knowing whether adults who were bullied as children differ from the general population in terms of their empathy for others.
In what ways do principle of servant leadership cross lines : While servant leadership can be connected to biblical principles and Christianity, it is not exclusively tied to it. In what ways do the principles of servant.
Determine the price of the bonds at january : Prepare an amortization schedule that determines interest at the effective rate each period.Determine the price of the bonds at January 1, 2021.
What is the probability of more than 250 pedestrians : The number of pedestrians crossing a street in Downtown Providence during morning rush hours is assumed to follow a normal distribution with mean 290
In what ways can servant leadership be considered a calling : Discuss the traits, behaviors, and leadership style you would expect to see in a person who identifies as a servant leader. In your response.
Questions improves student performance : Montarello and Martins (2005) found that fifth grade students completed more mathematics problems correctly when simple problems were mixed
Calculate the probability that the mean of sample : Calculate the probability that the mean of your sample is greater than the mean number of hours per week worked by your parents.

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Theory of interest - term structure of interest rates

Term Structure of Interest Rates

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +91-977-207-8620

Phone: +91-977-207-8620

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd