Haulem Equipment Inc. issued $82 million in 20-year bonds to finance the expansion of its school...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Haulem Equipment Inc. issued $82 million in 20-year bonds to finance the expansion of its school bus manufacturing operations in Winnipeg. The bonds pay 6% interest semi-annually and were issued at 80.207 to yield 8%. Calculate the amount of cash Haulem received on issuance of the bonds. (Round answer to 0 decimal places, e.g. 1,525.) Cash Received Prepare the journal entry to record the amount of cash Haulem received on issuance of the bonds. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) Prepare the journal entries to record the first two interest payments. Ignore year-end accruals of interest. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Round answers to 0 decimal places, e.g. 1,525.) Prepare the journal entries to record the first two interest payments. Ignore year-end accruals of interest. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Round answers to 0 decimal places, e.g. 1,525.) First Interest Second Interest Calculate the carrying value of the bonds one year after issuance (that is, after the second semi-annual payment). (Round answer to 0 decimal places, e.g. 1,525.) Haulem Equipment Inc. issued $82 million in 20-year bonds to finance the expansion of its school bus manufacturing operations in Winnipeg. The bonds pay 6% interest semi-annually and were issued at 80.207 to yield 8%. Calculate the amount of cash Haulem received on issuance of the bonds. (Round answer to 0 decimal places, e.g. 1,525.) Cash Received Prepare the journal entry to record the amount of cash Haulem received on issuance of the bonds. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) Prepare the journal entries to record the first two interest payments. Ignore year-end accruals of interest. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Round answers to 0 decimal places, e.g. 1,525.) Prepare the journal entries to record the first two interest payments. Ignore year-end accruals of interest. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Round answers to 0 decimal places, e.g. 1,525.) First Interest Second Interest Calculate the carrying value of the bonds one year after issuance (that is, after the second semi-annual payment). (Round answer to 0 decimal places, e.g. 1,525.)
Expert Answer:
Answer rating: 100% (QA)
Cash Price received on Issue of Bonds 82 Million 80207 Cash Price received on Issue of Bonds 6576974... View the full answer
Related Book For
Intermediate Accounting
ISBN: 978-0324592375
17th Edition
Authors: James D. Stice, Earl K. Stice, Fred Skousen
Posted Date:
Students also viewed these accounting questions
-
Prepare the journal entry to record Selectist Companys issuance of 104,000 shares of no-par value common stock assuming the shares: a. Sell for $15 cash per share. b. Are exchanged for land valued at...
-
Prepare the journal entry to record Typist Companys issuance of 250,000 shares of its common stock assuming the shares have a: a. $1 par value and sell for $10 cash per share. b. $1 stated value and...
-
Prepare the journal entry to record Autumn Companys issuance of 63,000 shares of no-par value common stock assuming the shares: a. Sell for $ 29 cash per share. b. Are exchanged for land valued at $...
-
Smart housing Inc. is negotiating a deal to build a house. The owner wants to start in early spring when the weather begins to moderate and build through the summer into the fall. The completion time...
-
Northgate Publishers, Inc., had sales of $900,000 during 20X1, 80% of them on credit and 20% for cash. During the year, accounts receivable increased from $60,000 to $90,000, an increase of $30,000....
-
Mark and Lucy owned two stocks, Tinker Inc., and Chance Inc., that became worthless during year 8. The adjusted basis in Tinker was $300,000. Tinker was incorporated in year 2, and Mark and Lucy...
-
As shown in Fig. P9.74, the aerodynamic drag on a truck can be reduced by the use of appropriate air deflectors. A reduction in drag coefficient from \(C_{D}=0.96\) to \(C_{D}=0.70\) corresponds to a...
-
Tori Amos Corporation began operations on December 1, 2007. The only inventory transaction in 2007 was the purchase of inventory on December 10, 2007, at a cost of $20 per unit. None of this...
-
1 3 +700, Given a total-revenue function R(x)=900x2 -0.2x and a total-cost function C(x) = 1400 (x+3) both in thousands of dollars, find the rate at which total profit is changing when x items have...
-
Given a network for an HR training project with normal times and crash times (in parentheses), find the cost-duration history. Assume indirect costs for facilities and equipment are $100 per day. The...
-
Consider the beam shown in the given figure. NOTE: This is a multi-part question. Once an answer is submitted, you will be unable to return to this part. 1800 lbf A 300 lbf/in 1 in 47 3 in 1 in 10 in...
-
Describe the three major kinds of plate boundaries.
-
What is the water that resides in the saturation zone called?
-
Why do some high-quality drills have diamond tips?
-
How does the atomic structure of glass differ from the atomic structure of the mineral calcite?
-
Why are volcanic mountain ranges often found along oceaniccontinental convergent boundaries?
-
Which is not an example of good stewardship within project management? Question 17 options: A. Commitment to and respectful engagement of project team members, including their compensation, access to...
-
X-1 Find the domain of the function f(x) : x 1 2 - O (-00, -1) U (-1, ) O (-00, 1) U (1, ) O -00, -1) U (-1, 1) U (1, 0) O (- 1, 1)
-
Distinguish between management accounting and financial accounting.
-
The following balance sheet asset information is for 2011: Cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 100 Accounts receivable . . . . . . . . . . . . . . . ....
-
On January 1, 2007, the company purchased equipment for $100,000. Originally, the equipment had a 12-year expected useful life and $4,000 residual value. The company uses straight-line depreciation....
-
The United States brought a lawsuit requesting forfeiture of a \($38.5\) million jet purchased by Teodoro Nguema Obiang Mangue (Nguema) because the government believed the jet had been purchased with...
-
Jose Medellin participated in the rape and murder of two teenage girls in Houston, Texas. He was arrested and read his Miranda rights, and he confessed. At the time, he was not informed that he could...
-
OBB Personenverkehr (OBB), the Austrian state-owned railway, carries about 235 million passengers a year on routes within wholly owned by OBB Holding Group, which in turn, is wholly owned by the...
Study smarter with the SolutionInn App