Question: A company issues $ 1 5 , 0 0 0 , 0 0 0 , 7 . 8 % , 2 0 - year bonds

A company issues $15,000,000,7.8%,20-year bonds to yield 8% on January 1,2011. Interest is paid on June 30 and December 31. The proceeds from the bonds are $14,703,109. Using straight-line amortization, what is the carrying value of the bonds on December 31,2013?
$14,752,673
$14,955,466
$14,725,375
$14,747,642
A company issues $15,000,000,7.8%,20-year bonds to yield 8% on January 1,2011.

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!

Q:

1) Kellog Co. issues $100,000 total of bonds with a maturity of 5 years, which pay 3% interest annually.The bond yield to maturityis 3.5%. What is the price of ONE bond today? PV of interest payments...

Q:

a company issues 1 0 0 0 0 0 0 0 7 % 2 0 year bonds to yield 8 % on jan 1 , year 1 . interest is paid on june 3 0 and dec 3 1 . the proceeds from the bonds are 9 0 1 0 3 6 1 . what is interst expense...

Q:

a company issues 1 0 0 0 0 0 0 0 7 % 2 0 year bonds to yield 8 % on jan 1 , year 1 . interest is paid on june 3 0 and dec 3 1 . the proceeds from the bonds are 9 0 1 0 3 6 1 . what is interst expense...

Q:

Consider a publicly traded firm which is currently financed by equity only. Due to the poor performance of the company, a group of investors plan to buy up all shares of the firm and reorganize the...

Q:

i need total revenue for A only show the calculation step by step clearly plaeas thanks for A only 0 0 10 JACLE, an industrial company in Jubail, is considering to install a new automated...

Q:

0 0 JACLE, an industrial company in Jubail, is considering to install a new automated plastic-molding press system. Four (4) different alternatives are available. Relevant information for these...

Q:

indexcel Financial formulas to solve the problems where appropriate to 2 decimal places 7 1. Erhart Enterprises has bends on the market making annual payments, with 3 years to maturity, a par value...

Q:

hentid=8033697993166780155105278&ISBN 9780357517758&snapshotid 27721528id=13938680668 GEMINDTAP A ty-Bond Valuation 0 o S Excel Activity: Bond Valuation Clifford Clark is a recent retiree who is...

Q:

Foundation Round: 1 Dec. 31, 2016 FastTrack F71143 Andrews Iman Seoudi Baldwin Chester Digby Erie Ferris Andrews -0.6% 1.36 -0.8% Selected Financial Statistics Baldwin Chester 5.0% 5.7% 1.62 8.1%...

Q:

Problem 10. Answer and Explain 1. Which of the following is not likely a concern pertaining to agency costs? a. Incentive alignment between management and the board of directors b. Incentive...

Q:

An insurance company determines that in every 100 claims, 4 are fraudulent. What is the probability that the next claim the company processes will be fraudulent? a. Identify the event. Find the...

Q:

The extension spring shown in the figure has full-twisted loop ends. The material is AISI 1065 OQ&T wire. The spring has 84 coils and is close-wound with a preload of 16 lbf. (a) Find the closed...

Q:

4. Have you included all debt payments as expenses on your income and expense statement? (Your phone bill is an expense for this month if youve already paid it. If the bill is still sitting on your...

Q:

5. Develop a scenario comparing two PH programs and involving the use of a CBA.

Q:

(Appendices) AGING RECEIVABLES AND UNCOLLECTIBLE ACCOUNT EXPENSE. Perkinson Corporation sells paper products to a large number of retailers. Perkinsons accountant has prepared the following aging...

Q:

(Appendices) SALES RECORDED NET. Using the data in Exercise 6-27, assume that Nevada records sales gross. LO8 REQUIRED: 1. Prepare the entries to record this sale in Nevadas journal. 2. Prepare the...

Q:

(Appendices) INVENTORY TURNOVER. A recent annual report for The Limited shows cost of goods sold for the year of approximately $5,286 million and average inventory of approximately $769 million...