Golden Arches wants to expand their business and venture into the fast food industry. Golden Arches plans
Fantastic news! We've Found the answer you've been seeking!
Question:
Golden Arches wants to expand their business and venture into the fast food industry. Golden Arches plans to raise the capital by issuing $500,000 of 5.5%, seven-year bonds on January 1, 2019. The bonds pay interest semiannually on June 30 and December 31. The company receives $501,008 when the bonds are issued. | |||||
Record the following transactions. Include dates and round to the nearest dollar. Omit explanations. | |||||
a. | Cash received from the bond issue. | ||||
b. | Semiannual bond interest payments for 2019. Amortize the premium or discount using the straight-line amortization method. | ||||
c. | Retirement of bond at maturity on December 31, 2026, assuming the last interest payment has already been recorded. |
A corporation issues $1,500,000 of 3%, 5-year bonds, interest payable semiannually. At the time the bonds are issued, the market rate is 6%. Determine the present value of the bonds at issuance using the present value table below. Show computations in good form.
PV of Principal:
PV of annuity:
PV of Bond Payable =
Related Book For
Horngrens Financial And Managerial Accounting The Financial Chapters
ISBN: 9780134486840
6th Edition
Authors: Tracie L. Miller Nobles, Brenda L. Mattison, Ella Mae Matsumura
Posted Date: