On February 1, 2024, Sanyal Motor Products issued 6% bonds, dated February 1, with a face...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
On February 1, 2024, Sanyal Motor Products issued 6% bonds, dated February 1, with a face amount of $80 million. The bonds mature on January 31, 2028 (four years). The market yield for bonds of similar risk and maturity was 8%. Interest is paid semiannually on July 31 and January 31. Barnwell Industries acquired $80,000 of the bonds as a long-term investment. The fiscal years of both firms end December 31. ● ● Required: 1. Determine the price of the bonds issued on February 1, 2024. 2-a. Prepare amortization schedules that indicate Sanyal's effective interest expense for each interest period during the term to maturity. 2-b. Prepare amortization schedules that indicate Barnwell's effective interest revenue for each interest period during the term to maturity. 3. Prepare the journal entries to record the issuance of the bonds by Sanyal and Barnwell's investment on February 1, 2024. 4. Prepare the journal entries by both firms to record all events related to the bonds through January 31, 2026. Note: Use tables, Excel, or a financial calculator. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) Complete this question by entering your answers in the tabs below. Price of the bonds Req 4 Sanyal Req 1 Req 2A Req 2B Req 3 Determine the price of the bonds issued on February 1, 2024. Note: Do not round intermediate calculations. Enter your answer in whole dollars. < Req 1 Req 4 Barnwell Req 2A > Complete this question by entering your answers in the tabs below. Payment Cash Number Payment Req 1 Req 2A Req 2B Req 3 Prepare amortization schedules that indicate Sanyal's effective interest expense for each interest period during the term to maturity. Note: Do not round intermediate calculations. Enter your answers in whole dollars. Show less 1 2 3 4 5 6 7 8 Totals Effective Interest Req 4 Sanyal Increase in Balance < Req 1 Req 4 Barnwell Outstanding Balance Req 2B > Complete this question by entering your answers in the tabs below. Payment Cash Effective Number Payment Interest Req 1 Req 2A Req 2B Req 3 Prepare amortization schedules that indicate Barnwell's effective interest revenue for each interest period during the term to maturity. Note: Do not round intermediate calculations. Enter your answers in whole dollars. Show less 1 2 3 4 5 6 7 8 Totals Increase in Balance Req 4 Sanyal Outstanding Balance < Req 2A Req 4 Barnwell Req 3 > Complete this question by entering your answers in the tabs below. View transaction list Req 1 Req 2A Req 2B Req 3 Prepare the journal entries to record the issuance of the bonds by Sanyal and Barnwell's investment on February 1, 2024. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Do not round intermediate calculations. Enter your answers in whole dollars. Show less Journal entry worksheet < 1 2 Record the issuance of the bonds by Sanyal. Note: Enter debits before credits. Date February 01, 2024 Record entry General Journal Req 4 Sanyal Clear entry < Req 2B Req 4 Barnwell Debit Credit View general journal > Req 4 Sanyal > Journal entry worksheet < 1 2 Record the Bond investment by Barnwell. Note: Enter debits before credits. Date February 01, 2024 Record entry General Journal Clear entry Debit Credit View general journal View transaction list Req 1 Req 2A Req 2B Req 3 Prepare the journal entries by Sanyal to record all events related to the bonds through January 31, 2026. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Do not round intermediate calculations. Enter your answers in whole dollars. Show less Journal entry worksheet < 1 2 3 4 5 6 Note: Enter debits before credits. Date July 31, 2024 Record the payment of interest for Sanyal Company. Record entry General Journal Req 4 Sanyal Clear entry Req 4 Barnwell < Req 3 Debit Credit View general journal > Req 4 Barnwell > Journal entry worksheet < 1 2 3 Record the accrued interest for Sanyal Company. 4 5 6 Note: Enter debits before credits. General Journal Date December 31, 2024 Record entry Clear entry Debit Credit View general journal > Journal entry worksheet < 1 2 3 4 5 6 Record the payment of interest for Sanyal Company. Note: Enter debits before credits. Date January 31, 2025 Record entry General Journal Clear entry Debit Credit View general journal > Journal entry worksheet < 1 2 3 4 5 6 Record the payment of interest for Sanyal Company. Note: Enter debits before credits. Date July 31, 2025 Record entry General Journal Clear entry Debit Credit View general journal > Journal entry worksheet < 1 1 2 3 LO 4 5 Record entry Record the accrued interest for Sanyal Company. Note: Enter debits before credits. Date December 31, 2025 6 General Journal Clear entry Debit Credit View general journal > Journal entry worksheet < 1 2 3 4 Record the payment of interest for Sanyal Company. Date January 31, 2026 5 LO Note: Enter debits before credits. Record entry 6 General Journal Clear entry Debit Credit View general journal Complete this question by entering your answers in the tabs below. View transaction list Req 1 Req 2A Req 2B Req 3 Prepare the journal entries by Barnwell to record all events related to the bonds through January 31, 2026. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Do not round intermediate calculations. Enter your answers in whole dollars. Show less Journal entry worksheet 1 2 3 4 5 6 Note: Enter debits before credits. Date July 31, 2024 Record the receipt of interest for Barnwell Company. Record entry General Journal Req 4 Sanyal Clear entry Req 4 Sanyal Req 4 Barnwell Debit Credit View general journal > Req 4 Barnwell > Journal entry worksheet < 1 2 3 4 5 6 Record the accrued interest for Barnwell Company. Note: Enter debits before credits. Date General Journal December 31, 2024 Record entry Clear entry Debit Credit View general journal > Journal entry worksheet < 12 3 4 5 6 Record the receipt of interest for Barnwell Company. Note: Enter debits before credits. Date General Journal January 31, 2025 Record entry Clear entry Debit Credit View general journal > Journal entry worksheet 1 2 3 < 1 4 5 6 Record the receipt of interest for Barnwell Company. Note: Enter debits before credits. Date July 31, 2025 Record entry General Journal Clear entry Debit Credit View general journal > Journal entry worksheet < 1 2 3 Record the accrued interest for Barnwell Company. 4 5 6 Note: Enter debits before credits. Date General Journal December 31, 2025 Record entry Clear entry Debit Credit View general journal > Journal entry worksheet < 1 2 3 4 Date January 31, 2026 LO Record entry 5 Record the receipt of interest for Barnwell Company. Note: Enter debits before credits. 6 General Journal Clear entry Debit Credit View general journal On February 1, 2024, Sanyal Motor Products issued 6% bonds, dated February 1, with a face amount of $80 million. The bonds mature on January 31, 2028 (four years). The market yield for bonds of similar risk and maturity was 8%. Interest is paid semiannually on July 31 and January 31. Barnwell Industries acquired $80,000 of the bonds as a long-term investment. The fiscal years of both firms end December 31. ● ● Required: 1. Determine the price of the bonds issued on February 1, 2024. 2-a. Prepare amortization schedules that indicate Sanyal's effective interest expense for each interest period during the term to maturity. 2-b. Prepare amortization schedules that indicate Barnwell's effective interest revenue for each interest period during the term to maturity. 3. Prepare the journal entries to record the issuance of the bonds by Sanyal and Barnwell's investment on February 1, 2024. 4. Prepare the journal entries by both firms to record all events related to the bonds through January 31, 2026. Note: Use tables, Excel, or a financial calculator. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) Complete this question by entering your answers in the tabs below. Price of the bonds Req 4 Sanyal Req 1 Req 2A Req 2B Req 3 Determine the price of the bonds issued on February 1, 2024. Note: Do not round intermediate calculations. Enter your answer in whole dollars. < Req 1 Req 4 Barnwell Req 2A > Complete this question by entering your answers in the tabs below. Payment Cash Number Payment Req 1 Req 2A Req 2B Req 3 Prepare amortization schedules that indicate Sanyal's effective interest expense for each interest period during the term to maturity. Note: Do not round intermediate calculations. Enter your answers in whole dollars. Show less 1 2 3 4 5 6 7 8 Totals Effective Interest Req 4 Sanyal Increase in Balance < Req 1 Req 4 Barnwell Outstanding Balance Req 2B > Complete this question by entering your answers in the tabs below. Payment Cash Effective Number Payment Interest Req 1 Req 2A Req 2B Req 3 Prepare amortization schedules that indicate Barnwell's effective interest revenue for each interest period during the term to maturity. Note: Do not round intermediate calculations. Enter your answers in whole dollars. Show less 1 2 3 4 5 6 7 8 Totals Increase in Balance Req 4 Sanyal Outstanding Balance < Req 2A Req 4 Barnwell Req 3 > Complete this question by entering your answers in the tabs below. View transaction list Req 1 Req 2A Req 2B Req 3 Prepare the journal entries to record the issuance of the bonds by Sanyal and Barnwell's investment on February 1, 2024. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Do not round intermediate calculations. Enter your answers in whole dollars. Show less Journal entry worksheet < 1 2 Record the issuance of the bonds by Sanyal. Note: Enter debits before credits. Date February 01, 2024 Record entry General Journal Req 4 Sanyal Clear entry < Req 2B Req 4 Barnwell Debit Credit View general journal > Req 4 Sanyal > Journal entry worksheet < 1 2 Record the Bond investment by Barnwell. Note: Enter debits before credits. Date February 01, 2024 Record entry General Journal Clear entry Debit Credit View general journal View transaction list Req 1 Req 2A Req 2B Req 3 Prepare the journal entries by Sanyal to record all events related to the bonds through January 31, 2026. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Do not round intermediate calculations. Enter your answers in whole dollars. Show less Journal entry worksheet < 1 2 3 4 5 6 Note: Enter debits before credits. Date July 31, 2024 Record the payment of interest for Sanyal Company. Record entry General Journal Req 4 Sanyal Clear entry Req 4 Barnwell < Req 3 Debit Credit View general journal > Req 4 Barnwell > Journal entry worksheet < 1 2 3 Record the accrued interest for Sanyal Company. 4 5 6 Note: Enter debits before credits. General Journal Date December 31, 2024 Record entry Clear entry Debit Credit View general journal > Journal entry worksheet < 1 2 3 4 5 6 Record the payment of interest for Sanyal Company. Note: Enter debits before credits. Date January 31, 2025 Record entry General Journal Clear entry Debit Credit View general journal > Journal entry worksheet < 1 2 3 4 5 6 Record the payment of interest for Sanyal Company. Note: Enter debits before credits. Date July 31, 2025 Record entry General Journal Clear entry Debit Credit View general journal > Journal entry worksheet < 1 1 2 3 LO 4 5 Record entry Record the accrued interest for Sanyal Company. Note: Enter debits before credits. Date December 31, 2025 6 General Journal Clear entry Debit Credit View general journal > Journal entry worksheet < 1 2 3 4 Record the payment of interest for Sanyal Company. Date January 31, 2026 5 LO Note: Enter debits before credits. Record entry 6 General Journal Clear entry Debit Credit View general journal Complete this question by entering your answers in the tabs below. View transaction list Req 1 Req 2A Req 2B Req 3 Prepare the journal entries by Barnwell to record all events related to the bonds through January 31, 2026. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Do not round intermediate calculations. Enter your answers in whole dollars. Show less Journal entry worksheet 1 2 3 4 5 6 Note: Enter debits before credits. Date July 31, 2024 Record the receipt of interest for Barnwell Company. Record entry General Journal Req 4 Sanyal Clear entry Req 4 Sanyal Req 4 Barnwell Debit Credit View general journal > Req 4 Barnwell > Journal entry worksheet < 1 2 3 4 5 6 Record the accrued interest for Barnwell Company. Note: Enter debits before credits. Date General Journal December 31, 2024 Record entry Clear entry Debit Credit View general journal > Journal entry worksheet < 12 3 4 5 6 Record the receipt of interest for Barnwell Company. Note: Enter debits before credits. Date General Journal January 31, 2025 Record entry Clear entry Debit Credit View general journal > Journal entry worksheet 1 2 3 < 1 4 5 6 Record the receipt of interest for Barnwell Company. Note: Enter debits before credits. Date July 31, 2025 Record entry General Journal Clear entry Debit Credit View general journal > Journal entry worksheet < 1 2 3 Record the accrued interest for Barnwell Company. 4 5 6 Note: Enter debits before credits. Date General Journal December 31, 2025 Record entry Clear entry Debit Credit View general journal > Journal entry worksheet < 1 2 3 4 Date January 31, 2026 LO Record entry 5 Record the receipt of interest for Barnwell Company. Note: Enter debits before credits. 6 General Journal Clear entry Debit Credit View general journal
Expert Answer:
Answer rating: 100% (QA)
1 Determine the price of the bonds issued on February 1 2024 The price of the bonds will be the present value of the bonds future cash flows which con... View the full answer
Related Book For
Posted Date:
Students also viewed these accounting questions
-
On February 1, 2018, Cromley Motor Products issued 9% bonds, dated February 1, with a face amount of $80 million. The bonds mature on January 31, 2022 (4 years). The market yield for bonds of similar...
-
On February 1, 2024, Sanyal Motor Products issued 9% bonds, dated February 1, with a face amount of $80 million. The bonds mature on January 31, 2028 (four years). The market yield for bonds of...
-
On February 1, 2021, Cromley Motor Products issued 10% bonds, dated February 1, with a face amount of $60 million. The bonds mature on January 31, 2025 (4 years). The market yield for bonds of...
-
iHerb Inc. has several herb extractor evaporators that were purchased four years ago at a price of $20,000. These machines currently require annual maintenance costs of $2,000. However, the...
-
Suppose that Executive Aviation discovers that Air Ruidoso has sufficient assets in one of its bank accounts to pay the past-due amount. How might Executive Aviation attempt to obtain access to these...
-
Which of the following statements is true about the magnitude of the electric field in the transition region of an NP junction? A. It is constant in space. B. It increases linearly from the N side to...
-
Scientists searching for higher performance flexible structures created a diode with organic and inorganic layers. It has excellent mechanical bending properties. Applying a bending strain to the...
-
You are an analyst working for Goldman Sachs, and you are trying to value the growth potential of a large, established company, Big Industries. Big Industries has a thriving R&D division that has...
-
AMP Corporation (calendar-year-end) has 2020 taxable income of $1,900,000 for purposes of computing the 179 expense. During 2020, AMP acquired the following assets: (Use MACRS Table 1, Table 2, Table...
-
On the geologic map in Fig. G-1 (Appendix G) draw the correct strike and dip symbol in each circle to indicate the attitude of Formation B and each dike. To verify your attitude symbols, Fig. G-2 can...
-
For each of the following activities, identify whether process costing or job order costing should be used. Also indicate how manufacturing overhead should be applied to the product - whether...
-
Why are standards necessary to control the process of updating a website? Give three examples of different aspects of a website that need to be controlled.
-
Choose an industry you are familiar with (such as cell phone services, credit cards, or music streaming) and create a perceptual map showing the competitive positions of different service providers...
-
You have been appointed manager of a website for a car manufacturer and have been asked to refine the existing online measurement and improvement programme. Explain, in detail, the steps you would...
-
Most companies collect data about digital marketing activities, but few derive much value from it. Discuss possible reasons for this assertion.
-
Select a specific service product you are familiar with and identify its core product and supplementary services. Select a competing service and analyze the differences between the two in terms of...
-
Use the future value formula to find the indicated value. n = 49; i = 0.03; PMT = $64; FV = ? FV = $ (Round to the nearest cent.)
-
Given the table below, about how much force does the rocket engine exert on the 4.0 kg payload? Distance traveled with rocket engine firing (m) Payload final velocity (m/s) 500 320 490 310 1020 450...
-
The fiscal year-end for the Northwest Distribution Corporation is December 31. The companys 2024 financial statements were issued on March 15, 2025. The following events occurred between December 31,...
-
Mallock Inc. reports net operating income (loss) for financial reporting and tax purposes in each year as follows: Mallocks federal tax rate decreased from 35% to 21% starting in 2018. Mallock...
-
On January 2, 2024, Miller Properties paid $19 million for 1 million shares of Marlon Companys 6 million outstanding common shares. Millers CEO became a member of Marlons board of directors during...
-
Analyze the transient problem with the Dirichlet condition for a long cylinder and for a sphere. Derive expressions for the eigenfunctions, eigenconditions, and eigenvalues. Find the series...
-
Consider the problem of transient heat transfer with a constant heat source in a slab. Show that the governing equation in dimensionless form is \[\begin{equation*}\frac{\partial \theta}{\partial...
-
Eigenvalues without pain: CHEBFUN code. Eigenfunctions can be derived using the CHEBFUN with MATLAB since it has an overloaded eig function. The following code solves for the eigenfunctions of the...
Study smarter with the SolutionInn App