1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Anna [14]
3 years ago
14

National Orthopedics Co. issued 8% bonds, dated January 1, with a face amount of $550,000 on January 1, 2021. The bonds mature o

n December 31, 2024 (4 years). For bonds of similar risk and maturity the market yield was 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.)
Required:
1. Determine the price of the bonds at January 1, 2021.
2. Prepare the journal entry to record their issuance by National on January 1, 2021.
3. Prepare an amortization schedule that determines interest at the effective rate each period.
4. Prepare the journal entry to record interest on June 30, 2021.
5. Prepare the appropriate journal entries at maturity on December 31, 2024.
Business
1 answer:
loris [4]3 years ago
4 0

Answer:

1) the price of each bond:

PV of face value = $1,000 / 1.05⁸ = $676.84

PV of coupon payments = $40 x 6.4632 (PV annuity factor, 5%, 8 periods) = $258.53

market price per coupon = $935.37

2) journal entry to record issuance of the bonds:

January 1, 2021, bonds issued at a discount

Dr Cash 514,453.50

Dr Discount on bonds payable 35,546.50

    Cr Bonds payable 550,000

3) I used an excel spreadsheet    

4) June 30, 2021, first coupon payment

Dr Interest expense 25,722.68

    Cr Cash 22,000

    Cr Discount on bonds payable 3,722.68

5) December 31, 2024, last coupon payment

Dr Interest expense 27,236.45

    Cr Cash 22,000

    Cr Discount on bonds payable 5,236.45

December 31, 2024, bonds are redeemed

Dr Bonds payable 550,000

    Cr Cash 550,000

Download pdf
You might be interested in
If a egg need 5 mins to cook how many mins 7 eggs need to cook
denis23 [38]

35 its just 5 x 7 you multiply the number of eggs by how many minutes.

6 0
3 years ago
able sold to both the low and high tech segments last year, and marketing predicts able will have the same market share next yea
OverLord2011 [107]

Able sold to both the low and high-tech segments last year, and marketing predicts able will have the same market share next year. 1,841 units would you forecast for able.

Marketing describes the actions a business does to encourage the purchase or sale of a good or service. Advertising, selling, and delivering goods to customers or other firms are all included in marketing. Affiliates perform some marketing on behalf of a business.

Advertising is one of the primary methods used by marketing and promotion specialists to capture the interest of important target markets. Targeted promotions may include celebrity endorsements, memorable slogans or taglines, eye-catching packaging or graphic designs, and general media exposure.

Learn more about marketing here:

brainly.com/question/13414268

#SPJ4

7 0
1 year ago
One of two methods must be used to produce expansion anchors. Method A costs $80,000 initially and will have a $15,000 salvage v
kaheart [24]

Answer:

Method b

Explanation:

Present worth can be calculated using a financial calculator

For method A ,

Cash flow in year 0 = $80,000

Cash flow in year 1 and 2 = $30,000

Cash flow in year 3 = $30,000 - $15,000 = $15,000

I = 12%

Present worth = $141,378.23

For method B,

Cash flow in year 0 = $120,000

Cash flow in year 1 and 2 = $8, 000

Cash flow in year 3 = $8,000 - $40,000 = $-32,000

I = 12%

Present worth = $110,743.44

Method b would is chosen because it worth less.

To find the present worth using a financial calacutor:

1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.

2. After inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.

3. Press compute

4 0
3 years ago
In the "promoting leadership effectiveness" model, what is a listed goal at the interpersonal level?b
Paha777 [63]
<span>Leadership is quality that must have be with the person one whom having responsibility to handle a team and developing the business or something. We should encourage the leadership skill inside us then we can easily play a good role in a team. Communication is playing very big role in a teamwork so leader should lead the team with this quality</span>
7 0
3 years ago
When offering financial products to clients you may
Viktor [21]

Answer:  Decide if you really want to offer financial services to your clients I think so

Explanation:

8 0
3 years ago
Other questions:
  • JJ Enterprises has current assets of $10,406, long-term debt of $4,780, and current liabilities of $9,822 at the beginning of th
    13·1 answer
  • The cleanest, most comfortable restaurant in town and the staff is always impeccably dressed and very courteous. Based on this f
    10·1 answer
  • Alonzo decides to have a yard sale to sell some of his personal items. At the sale, Alonzo sells Ralph a big screen television f
    5·2 answers
  • C tendency for part-time college faculty to hold their students to different standards than do full-time faculty? an article rep
    13·1 answer
  • For questions 1-10 fill in the blank with the letter of the term or description that best matches the term.
    5·1 answer
  • West Calder Fabrication is trying to decide which of the following four cargo ships that should be used to ship their products,
    9·1 answer
  • Voice is a principle of good communications One major reason to do an in-depth interview of top management and communicators bef
    15·2 answers
  • The following transactions of Acer Downyoccurred during 2018​:
    6·1 answer
  • Wally owns 200 acres of land.Wally offers to sell the land to Robert for $1,500 per acre.Robert replies that he does not need 20
    11·1 answer
  • A liquidated debt is an obligation the existence or amount of which is in dispute. Group of answer choices True False
    6·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!