Question

ACC Inter II ch 14 10a)Ava, Inc., issued 7% bonds, dated January 1, with a face...

ACC Inter II ch 14

10a)Ava, Inc., issued 7% bonds, dated January 1, with a face amount of $117,200 on January 1, 2016 for an issue price of 106.5. The bonds mature on December 31, 2025 (10 years). For bonds of similar risk and maturity the market yield is 9%. Interest is paid annually on December 31.

What is the interest payment on the bond?

10b) A company issued 5%, 20-year bonds with a face amount of $302,000. The market yield for bonds of similar risk and maturity is 5%. Interest is paid annually. What is the debit to cash for the bond proceeds?

Here are the PV and PVA factors

PV i=5%, 20 periods

PVA i=5%, 20 periods

PV i=7%, 20 periods

PVA i=7%, 20 periods

.37689

12.46221

.25842

10.59401
Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Ava, Inc., issued 8% bonds, dated January 1, with a face amount of $202,900 on January...
Ava, Inc., issued 8% bonds, dated January 1, with a face amount of $202,900 on January 1, 2016 for an issue price of 89. The bonds mature on December 31, 2025 (10 years). For bonds of similar risk and maturity the market yield is 10%. Interest is paid annually on December 31. What is the carrying value of the bond on December 31,2016?
ACC Inter II ch 14 4a) Enterprise Group issued $100,000 of 4-year, 6% bonds outstanding on...
ACC Inter II ch 14 4a) Enterprise Group issued $100,000 of 4-year, 6% bonds outstanding on December 31, 2015 for $94,000. Enterprise uses straight-line amortization. On April 1, 2016, $20,000 of the bonds were retired at 96. What is the book value of the bonds sold on April 1? 4b) Ava, Inc., issued 7% bonds, dated January 1, with a face amount of $152,000 on January 1, 2016 for an issue price of 88.5. The bonds mature on December 31,...
ACC Inter II ch 14 13a) Emma Company purchased a machine from Noah Corporation on October...
ACC Inter II ch 14 13a) Emma Company purchased a machine from Noah Corporation on October 31, 2016. In payment for the $140,300 purchase, Emma issued a one-year installment note to be paid in equal monthly payments of $12,465 at the end of each month. The payments include interest at an annual rate of 12%. When recording the November 30, 2016 payment, the debit to Notes Payable will be $_______ 13b) Ava, Inc., issued 10% bonds, dated January 1, with...
issued 11% bonds, dated January 1, with a face amount of $800,000 on January 1, 2009....
issued 11% bonds, dated January 1, with a face amount of $800,000 on January 1, 2009. The bonds sold for $739,815 and mature in 2028 (20 years). For bonds of similar risk and maturity, the market yield was 12%. Interest is paid semiannually on June 30 and December 31. The company uses the effective interest method of amortization and has a calendar year end.   Instructions: Prepare the journal entries that Federal Semiconductors would make on January 1, June 30, December...
On January 1, 2018, Bishop Company issued 8% bonds dated January 1, 2018, with a face...
On January 1, 2018, Bishop Company issued 8% bonds dated January 1, 2018, with a face amount of $21.0 million. The bonds mature in 2027 (10 years). For bonds of similar risk and maturity, the market yield is 10%. Interest is paid semiannually on June 30 and December 31. (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. Round your intermediate calculations to...
On January 1, 2021, Bishop Company issued 8% bonds dated January 1, 2021, with a face...
On January 1, 2021, Bishop Company issued 8% bonds dated January 1, 2021, with a face amount of $20.7 million. The bonds mature in 2030 (10 years). For bonds of similar risk and maturity, the market yield is 10%. Interest is paid semiannually on June 30 and December 31. (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. Round your intermediate calculations to...
On January 1, 2021, Bishop Company issued 8% bonds dated January 1, 2021, with a face...
On January 1, 2021, Bishop Company issued 8% bonds dated January 1, 2021, with a face amount of $20.7 million. The bonds mature in 2030 (10 years). For bonds of similar risk and maturity, the market yield is 10%. Interest is paid semiannually on June 30 and December 31. (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. Round your intermediate calculations to...
On January 1, 2021, Bishop Company issued 10% bonds dated January 1, 2021, with a face...
On January 1, 2021, Bishop Company issued 10% bonds dated January 1, 2021, with a face amount of $19.1 million. The bonds mature in 2030 (10 years). For bonds of similar risk and maturity, the market yield is 12%. Interest is paid semiannually on June 30 and December 31. (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. Round your intermediate calculations to...
On January 1, 2018, Bishop Company issued 8% bonds dated January 1, 2018, with a face...
On January 1, 2018, Bishop Company issued 8% bonds dated January 1, 2018, with a face amount of $20.8 million. The bonds mature in 2027 (10 years). For bonds of similar risk and maturity, the market yield is 10%. Interest is paid semiannually on June 30 and December 31. (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. Round your intermediate calculations to...
The Bradford Company issued 12% bonds, dated January 1, with a face amount of $96 million...
The Bradford Company issued 12% bonds, dated January 1, with a face amount of $96 million on January 1, 2021. The bonds mature on December 31, 2030 (10 years). For bonds of similar risk and maturity, the market yield is 14%. Interest is paid semiannually on June 30 and December 31. (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. Determine...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT