WebThe bond interest rate is 8% and interest is paid semi-annually. The journal entry to record the purchase would be: A. Debit: Investment in Bonds $100,000 and Interest Receivable $1,500; Credit: Cash $101,500 B. Debit: Investment in Bonds $100,000; Credit: Interest Revenue $1,500 and Cash $98,500 WebBelow is a partial bond amortization schedule for the bonds: What is the interest expense on the bonds in 2024? Muluple Choice \( \$ 761,922 \) \( \$ 1,400,000 \) \( \$ 765.637 \) Multiple; Question: Discount-Mart issues \( \$ 14 \) million in bonds on January 1, 2024. The bonds have a seven-year term and pay interest semiannually on June 30 a ...
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WebIf the market rate of interest is 7%, the price of 6% bonds paying interest semiannually with a face value of $500,000 will be less than $500,000 On January 1 of the current year, Barton Corporation issued 10% bonds with a face value of … WebApr 12, 2024 · The annual interest payment for the bond is ($500,000 x 6%) = $30,000. However, since the bonds were issued at a premium, Discount Tire will pay less than this amount in cash interest. The premium on the bonds is the difference between the face value ($500,000) and the amount received from issuing the bonds ($581,771), which is …
WebApr 11, 2024 · If you took out a 30-year fixed-rate mortgage for $400,000 at 4.72% interest one year ago, you'd make payments of $2,079.36 and pay a total of roughly $349,000 in interest over the life of the loan. WebStudy with Quizlet and memorize flashcards containing terms like The 6.5 percent bond of ABCO has a yield to maturity of 6.82 percent. The bond matures in seven years, has a face value of $1,000, and pays semiannual interest payments. What is the amount of each coupon payment?, A $1,000 face value bond currently has a yield to maturity of 8.22 …
WebA company issues $50,000 of 5%, 10-year bonds dated January 1 and pay interest semiannually on June 30 and December 31 each year. The bonds are sold for $48,000. Using the straight-line amortization method, the company will amortize the discount by __________ on each semiannual interest payment. WebThe bonds pay interest semiannually. The market rate of interest is 9.0% and the bond selling price was $2,516,532. The bond issuance should be recorded as: Debit Cash $2,516,532; debit Discount on Bonds Payable $183,468; credit Bonds Payable $2,700,000.
WebThe bonds pay interest semiannually on January 1 and July 1. The cash paid on July 1 to the bond holder (s) is: $70,000 × 0.07 × 1/2 year = $2,450 A company issued 6-year, 8% bonds with a par value of $650,000. The market rate when the bonds were issued was 7.5%. The company received $656,500 cash for the bonds.
WebThe bonds pay interest semiannually. The market rate of interest is 8.5% and the bond selling price was $2,889,352. The bond issuance should be recorded as: Debit Cash $2,889,352; debit Discount on Bonds Payable $210,648; credit Bonds Payable $3,100,000. A company issued 7%, 15-year bonds with a par value of $480,000 that pay interest … schalke trainer historieWeb(Bond valuation) Flora Co.'s bonds, maturing in 18 years, pay 15 percent interest on a $1,000 face value. However, interest is paid semiannually. If your required rate of return is 9 percent, what is the value of the bond? schalke training topWebBonds Payable; 50,000 A company issues $90,000 of 5%, 5-year bonds dated January 1 that pay interest semiannually on June 30 and December 31 each year. If the issuer accepts $95,000 for the bonds, the issuer will record the sale with a (debit/credit) Credit to (Discount/Premium) Premium on Bonds Payable in the amount of $5,000. Credit; Premium schalke tattoo motiveWebJan 1, 2024 · The first semiannual interest payment was made on June 30, 2024. Bond interest expense - (Debit) $18,284 Premium on bonds payable - (Debit) $1,966 Cash - (Credit) $20,250 On December 31, 2024, Spearmint, Inc., issued $450,000 of 9 percent, 3-year bonds at a premium of $11,795. The bonds pay interest semiannually. schalke training 2016WebThe bonds pay interest semiannually on March 31 and September 30. Jerome intends to hold the bonds until they mature Complete the necessary journal entry by selecting the account names from the pull-down menus and entering … schalke testspiel live youtubeWebStudy with Quizlet and memorize flashcards containing terms like In order to expand its business, Mueller Inc. is borrowing $1 million from its bank. Mueller is utilizing this type of financing:, financing refers to obtaining investment from stockholders. (Enter only one word.), At the beginning of the year, Petra owes $10,000 on an installment notes … schalke traditionselfWebBelow is a partial bond amortization schedule for the bonds: What is the interest expense on the bonds in 2024? Muluple Choice \( \$ 761,922 \) \( \$ 1,400,000 \) \( \$ 765.637 \) … schalke trompeter willi