On January 1, 2021, a company issued serial bonds with a face value of P3,000,000 and...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
On January 1, 2021, a company issued serial bonds with a face value of P3,000,000 and stated rate of 12%. Interest is payable annually every December 31. The bonds were issued to yield 10%. The bonds mature at an annual installment of P1,000,000 every December 31. How much is the carrying value of the bonds on December 31, 2021? (Round off PV factor to 4 decimal places. Round off final answer to the nearest peso.) On January 1, 2021, a company issued serial bonds with a face value of P3,000,000 and stated rate of 12%. Interest is payable annually every December 31. The bonds were issued to yield 10%. The bonds mature at an annual installment of P1,000,000 every December 31. How much is the carrying value of the bonds on December 31, 2021? (Round off PV factor to 4 decimal places. Round off final answer to the nearest peso.)
Expert Answer:
Related Book For
Intermediate Accounting Reporting and Analysis
ISBN: 978-1285453828
2nd edition
Authors: James M. Wahlen, Jefferson P. Jones, Donald Pagach
Posted Date:
Students also viewed these accounting questions
-
A recently issued industrial bond with a face value of $10,000 has a coupon rate of 8% per year, payable annually. The bond matures 20 years from now. Jeremy is interested in buying one bond. If he...
-
The company intends to issue 20-year bonds with a face value of $1,000. The bonds carry a coupon rate of 10%, and interest is paid semiannually. On the issue date, the market interest rate for bonds...
-
The Glover Corporation purchased bonds with a face value of $300,000 for $307,493.34 on January 1, 2007. The bonds carry a face rate of interest of 12%, pay interest semiannually on June 30 and...
-
The derivative of f(x,y) at Po(1.2) in the direction of 7+is 2/2 and in the direction of -21 it is -3 What is the derivative of f in the direction of -1-21?
-
On January 1, 2010, Ameen Company purchased a building for $36 million. Ameen uses straight-line depreciation for financial statement reporting and MACRS for income tax reporting. At December 31,...
-
For ease of production planning, CRW would like to keep the batch size for each type of component constant at 20. Calculate how much the setup time for each component should be reduced or increased...
-
Accounts Receivable Turnover Calculate the company's accounts receivable turnover for 2019 and compare the result to the industry average. Use the following financial data for Brenner Instruments...
-
A portion of the costs incurred by business organizations is designated as direct labor cost. As used in practice, the term direct labor cost has a wide variety of meanings. Unless the meaning...
-
27 Brown Deer Company earned $151,888 during the year ended June 30, 2018. After paying out $25,794 in dividends, the balance went into retained earnings. If the firm's total retained earnings were...
-
Loan payments of $1725 due today, $510 due in 75 days, and $655 due in 323 days are to be combined into a single payment to be made 115 days from now. What is that single payment if money is worth...
-
Complete the table below to show what Blue Sky would report on its 2 0 2 1 balance sheet. ( Enter amount in millions as provided to you in the problem statement,$X . X . ) During 2021, Blue Sky...
-
The Soccer Investment Center of Nike manufactures and sells soccer hats and soccer balls. The Soccer Hats Profit Center incurs the following costs for the production of a single soccer hat when...
-
Prepare a brief (i.e. less than three-quarters of a page) memo addressed to Melissa suggesting the type of audit opinion that should be given and explain why you have chosen that opinion. Ensure that...
-
In an inventory business, what are the difference inventory cost methods? And how does it affect the inventory?
-
I. What is profit maximization and state what limits the profit maximization as the financial goal 5 Marks ii. What is meant by risk return trade-off? and explain what is meant by risk-free rate and...
-
Bluegill Company sells 9,600 units at $160 per unit. Fixed costs are $76,800, and operating income is $691,200. Determine the (a) variable cost per unit, (b) unit contribution margin, and (c)...
-
What would happen if the arrival rate of customers is greater than or equal to the service rate?
-
Accounting policies and practices that are most important to the portrayal of the companys financial condition and results, and require managements most difficult, subjective, or complex judgments...
-
Assume prices were stable during the period. The following values were obtained from the inventory records of Harris Company which has a fiscal year ending on December 31: Inventory, January 1, 2016,...
-
For the year ended December 31, 2016, Nelson Co. s income statement showed income of $ 435,000 before income, tax expense. To compute taxable income, the following differences were noted: Income from...
-
Refer to the information in RE13-7. Assume that on June 30, Aggie received interest on the Smith Corporation bonds, as well as a $1 dividend per share interest on the Bike Company stock. Prepare the...
-
This problem can be solved analytically or with a spreadsheet. Two identical large glass bulbs are filled with gases and connected by a capillary tube that is \(\delta=0.0090\) \(\mathrm{m}\) long....
-
Estimate \(\mathrm{Sc}_{\mathrm{V}}\) for a saturated vapor mixture that is \(80 \mathrm{~mol} \%\) ethanol and \(20 \mathrm{~mol} \%\) water at \(1.0 \mathrm{~atm}\).
-
PhotoMax, Inc., plans to prepare a sales budget schedule and a purchases budget schedule for 20X3. Management has set a sales goal of 250,000 units. After reviewing price trends, the sales manager...
Study smarter with the SolutionInn App