When Patey Pontoons issued 8% bonds on January 1, 2018, with a face amount of $700.000,...
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When Patey Pontoons issued 8% bonds on January 1, 2018, with a face amount of $700.000, the market yield for bonds of similar risk and maturity was 9%. The bonds mature December 31, 2021 (4 years). Interest is paid semiannually on June 30 and December 31. (FV of $1. PV of $1. EVA of $1, PVA of $1, EVAD of $1 and PVAD of $) (Use appropriate factor(s) from the tables provided.) Required: 1. Determine the price of the bonds at January 1, 2018. 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, 2018. 5. What is the amount related to the bonds that Patey will report in its balance sheet at December 31, 2018? 6. What is the amount related to the bonds that Patey will report in its income statement for the year ended December 31, 2018? (Ignore income taxes.) 7. Prepare the appropriate journal entries at maturity on December 31, 2021. Check my work National Orthopedics Co. issued 8% bonds, dated January 1, with a face amount of $550,000 on January 1, 2018. The bonds mature on December 31, 2021 (4 years). For bonds of similar risk and maturity the market yield was 10%. Interest is paid semiannually on June 30 and December 31. (EV 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: 1. Determine the price of the bonds at January 1, 2018. 2. Prepare the journal entry to record their issuance by National on January 1, 2018. 3. Prepare an amortization schedule that determines interest at the effective rate each period. 5. Prepare the appropriate journal entries at maturity on December 31, 2021. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Required 5 When Patey Pontoons issued 8% bonds on January 1, 2018, with a face amount of $700.000, the market yield for bonds of similar risk and maturity was 9%. The bonds mature December 31, 2021 (4 years). Interest is paid semiannually on June 30 and December 31. (FV of $1. PV of $1. EVA of $1, PVA of $1, EVAD of $1 and PVAD of $) (Use appropriate factor(s) from the tables provided.) Required: 1. Determine the price of the bonds at January 1, 2018. 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, 2018. 5. What is the amount related to the bonds that Patey will report in its balance sheet at December 31, 2018? 6. What is the amount related to the bonds that Patey will report in its income statement for the year ended December 31, 2018? (Ignore income taxes.) 7. Prepare the appropriate journal entries at maturity on December 31, 2021. Check my work National Orthopedics Co. issued 8% bonds, dated January 1, with a face amount of $550,000 on January 1, 2018. The bonds mature on December 31, 2021 (4 years). For bonds of similar risk and maturity the market yield was 10%. Interest is paid semiannually on June 30 and December 31. (EV 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: 1. Determine the price of the bonds at January 1, 2018. 2. Prepare the journal entry to record their issuance by National on January 1, 2018. 3. Prepare an amortization schedule that determines interest at the effective rate each period. 5. Prepare the appropriate journal entries at maturity on December 31, 2021. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Required 5
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Answer rating: 100% (QA)
1 Compute the price of the bonds as follows Particulars Amount Factor Present Value 28000 x 659589 S... View the full answer
Related Book For
Intermediate Accounting
ISBN: 978-0078025839
9th edition
Authors: J. David Spiceland, James Sepe , Mark Nelson , Wayne Thomas
Posted Date:
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