9. On the first day of 2021, Williams Company issued zero coupon bonds. These bonds have a face value of $5.3 million, a maturity of 15 years, and were issued at a price of $1,920,985. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) Required: What is the interest expense Williams Company reports in its 2021 income statement related to these bonds? (Enter your answer rounded to the nearest whole dollar.)
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9. On the first day of 2021, Williams Company issued zero coupon bonds. These bonds have a face value of $5.3 million, a maturity of 15 years, and were issued at a price of $1,920,985. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.)
Required:
What is the interest expense Williams Company reports in its 2021 income statement related to these bonds? (Enter your answer rounded to the nearest whole dollar.)
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- On January 1, 2021, Darnell Window and Pane issued $18 million of 10-year, zero-coupon bonds for $5,795,518. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) Required:2. Determine the effective rate of interest.1. & 3. to 5. Prepare the necessary journal entries.On January 1, 2018, Morton Sales Co. issued zero-coupon bonds with a face value of $5.7 million for cash. The bonds mature in 6 years and were issued at a price of $3,798,138. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) Required: What will Morton Sales Co. report on these bonds in its December 31, 2018, balance sheet?Stinson Corporation issued $600,000 of 7%, 10-year bonds payable on March 31, 2022. The market interest rate at the date of issuance was 9%, and the bonds pay interest semiannualy. St Corporation's year-end is March 31. Read the requirements. 1. Using the PV function in Excel, The issue price of the bonds is Requirements 1. Using the PV function in Excel, calculate the issue price of the bonds 2. Prepare an effective-interest amortization table for the bonds through the first three interest payments. Round amounts to the nearest dollar 3. Record Stinson Corporation's issuance of the bonds on March 31, 2022, and payment of the first semiannual interest amount and amortization of the bond discount on September 30, 2022 Explanations are not required Print Done X Clear all Check answer
- On January 1, 2021, Darnel Window and Pane issued $18.8 million of 10-year, zero-coupon bonds for $6,621,068. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) Required: 2. Determine the effective rate of interest. 1. & 3. to 5. Prepare the necessary journal entries. Complete this question by entering your answers in the tabs below. General Interest rate Journal Determine the effective rate of interest. Interest rate %On January 1, 2024, Cool Universe issued 10% bonds dated January 1, 2024, with a face amount of $20.1 million. The bonds mature in 2033 (10 years). For bonds of similar risk and maturity, the market yield is 12%. Interest is paid semiannually on June 30 and December 31. Note: Use tables, Excel, or a financial calculator. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) Required: 1. Determine the price of the bonds on January 1, 2024. 2. Prepare the journal entry to record the bond issuance by Cool on January 1, 2024. 3. Prepare the journal entry to record interest on June 30, 2024, using the straight-line method. 4. Prepare the journal entry to record interest on December 31, 2024, using the straight-line method. Complete this question by entering your answers in the tabs below. Req 1 Req 2 to 4 Check n Determine the price of the bonds on January 1, 2024. Note: Enter your answers in whole dollars not in millions (l.e., 1,000,000 not 1). Round your intermediate…Your answer is partially correct. Swifty Ltd. issued a $1,184,000, 10-year bond dated January 1, 2023. The bond was sold to yield 12% effective interest. The bond paid 10% interest on January 1 and July 1 each year. The company's year-end was December 31, and Swifty followed IFRS. Using 1. factor Tables 2. a financial calculator, or 3. Excel function PV, calculate the amount received for the bond, and any discount or premium on the bond.
- On June 30, 2021, the market interest rate is 5%. Champs Corporation issues $600,000 of 10%, 30-year bonds payable. The bonds pay interest on June 30 and December 31. The company amortizes bond premium using the effective-interest method. Read the requirements. Requirement 1. Use the PV function in Excel to calculate the issue price of the bonds. (Round your answer to the nearest whole dollar.) The issue price of the bonds is Requirements 1. 2. 3. Use the PV function in Excel to calculate the issue price of the bonds. Prepare a bond amortization table for the first four semiannual interest periods. Record the issuance of bonds payable on June 30, 2021; the payment of interest on December 31, 2021; and the payment of interest on June 30, 2022. Print Done XOn January 1, 2024, Morton Sales Company issued zero-coupon bonds with a face value of $6.9 million for cash. The bonds mature in 8 years and were issued at a price of $4,015,869. Required: What total Interest expense will Morton Sales Company report over the 8-year life of these bonds? Note: Use tables, Excel, or a financial calculator. Enter your answer in whole dollars. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) Interest expenseHartley Corporation issued $560,000 of 5%, 10-year bonds payable on March 31, 2022. The market interest rate at the date of issuance was 8 %, and the bonds pay interest semiannually. Hartley Corporation's year-end is March 31. Read the requirements 1. Using the PV function in Excel, calculate the issue price of the bonds. (Round your answer to the nearest Whole dollar) The issue price of the bonds is Requirements 1. Using the PV function in Excel, calculate the issue price of the bonds 2. Prepare an effective-interest amortization table for the bonds through the first three interest payments. Round amounts to the nearest dollar. 3. Record Hartley Corporation's issuance of the bonds on March 31, 2022, and payment of the first semiannual interest amount and amortization of the bond discount on September 30, 2022 Explanations are not required Print Done
- Schaffer Corporation issued $640,000 of 5%, 12-year bonds payable on March 31, 2022. The market interest rate at the date of issuance was 10%, and the bonds pay interest semiannually. Schaffer Corporation's year-end is March 31. Read the requirements. 1. Using the PV function in Excel, calculate the issue price of the bonds. (Round your answer to the nearest whole dollar.) The issue price of the bonds is Requirements 1. Using the PV function in Excel, calculate the issue price of the bonds. 2. Prepare an effective-interest amortization table for the bonds through the first three interest payments. Round amounts to the nearest dollar. 3. Record Schaffer Corporation's issuance of the bonds on March 31, 2022, and payment of the first semiannual interest amount and amortization of the bond discount on September 30, 2022. Explanations are not required. XOn January 1, 2021, Instaform, Inc., issued 12% bonds with a face amount of $45 million, dated January 1. The bonds mature (20 years). The market yield for bonds of similar risk and maturity is 14%. Interest is paid semiannually. (FV of $1. PV of $1. E PVA of $1. FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) Complete this question by entering your answers in the tabs below. Required: 1-a. Determine the price of the bonds at January 1, 2021. 1-b. Prepare the journal entry to record their issuance by Instaform. 2-a. Assume the market rate was 11%. Determine the price of the bonds at January 1, 2021. 2-b. Assume the market rate was 11%. Prepare the journal entry to record their issuance by Instaform. 3. Assume Broadcourt Electronics purchased the entire issue in a private placement of the bonds. Using the data in require prepare the journal entry to record the purchase by Broadcourt. prepare the journal entry to record the purchase by Broadcourt. Reg 1A…On January 1, 2021, Instaform, Inc., issued 10% bonds with a face amount of $53 million, dated January 1. The bonds mature in 2040 (20 years). The market yield for bonds of similar risk and maturity is 12%. Interest is paid semiannually. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD OF $1, and PVAD of $1) (Use appropriate factor (s) from the tables provided.) Required: 1-a Determine the price of the bonds at January 1, 2021. 1-b Prepare the journal entry to record their issuance by instaform. 2-a Assume the market rate was 9%. Determine the price of the bonds at January 1, 2021. 2-b Assume the market rate was 9%. Prepare the journal entry to record their issuance by instaform. 3. Assume Broadcourt Electronics purchased the entire issue in a private placement of the bonds. Using the data in requirement 1, prepare the journal entry to record the purchase by Broadcourt.