Idaho Inc. issued $600,000 bonds with a stated rate of 9% when the market rate was 7%. They are 3-year bonds with interest to be paid annually. Assume that the bonds were issued for $630,750. Prepare an amortization table for all three payments. Annual Interest Period Annual Interest Expense Annual Interest Payment Amortization of Premium Ending Carrying Value 1 2 3 PLEASE NOTE: All dollar amounts will be rounded to whole dollars using "$" and commas as needed (i.e. $12,345).

Idaho Inc. issued $600,000 bonds with a stated rate of 9% when the market rate was 7%. They are 3-year bonds with interest to be paid annually. Assume that the bonds were issued for $630,750. Prepare an amortization table for all three payments. Annual Interest Period Annual Interest Expense Annual Interest Payment Amortization of Premium Ending Carrying Value 1 2 3 PLEASE NOTE: All dollar amounts will be rounded to whole dollars using "$" and commas as needed (i.e. $12,345).

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter9: Long-term Liabilities

Section: Chapter Questions

Problem 15MCQ

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On January 1, 2018, Wawatosa Inc. issued 5-year bonds with a face value of $200,000 and a stated interest rate of 12% payable semi-annually on July 1 and January 1. The bonds were sold to yield 10%. Assuming the bonds were sold at 107.732, what is the selling price of the bonds? Were they issued at a discount or a premium?
On July 1, a company sells 8-year $250,000 bonds with a stated interest rate of 6%. If interest payments are paid annually, each interest payment will be ________. A. $120,000 B. $60,000 C. $7,500 D. $15,000
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Chung Inc. issued $50,000 of 3-year bonds on January 1, 2018, with a stated rate of 4% and a market rate of 4%. The bonds paid interest semi-annually on June 30 and Dec. 31. How much money did the company receive when the bonds were issued? The bonds would be quoted at what rate?
Whirlie Inc. issued $300,000 face value, 10% paid annually, 10-year bonds for $319,251 when the market of interest was 9%. The company uses the effective-interest method of amortization. At the end of the year, the company will record ________. A. a credit to cash for $28,733 B. a debit to interest expense for $31,267 C. a debit to Discount on Bonds Payable for $1,267 D. a debit to Premium on Bonds Payable for $1.267
A company issued bonds with a $100,000 face value, a 5-year term, a stated rate of 6%, and a market rate of 7%. Interest is paid annually. What is the amount of interest the bondholders will receive at the end of the year?
Idaho Inc. issued $600,000 bonds with a stated rate of 9% when the market rate was 7%. They are 3- year bonds with interest to be paid annually. Assume that the bonds were issued for $630,750. Prepare an amortization table for all three payments. Annual Annual Interest Annual Interest Amortization of Ending Carrying Interest Expense Payment Premium Value Period 1 3 PLEASE NOTE: All dollar amounts will be rounded to whole dollars using "$" and commas needed (i.e. $12,345).
2. Waldron Inc. issued $400,000 bonds with a stated rate of 7% when the market rate was 5%. They are 3-year bonds with interest to be paid annually. Assume that the bonds were issued for $421,840. Prepare an amortization table for the first three payments. Annual Interest Period Annual Interest Expense Annual Interest Payment Amortization of Premium Ending Carrying Value 1 2 3 PLEASE NOTE: All dollar amounts will be rounded to whole dollars with "$" and commas as needed (i.e. $12,345).
1. Haiku Inc. issued $600,000 of 10-year bonds with a stated rate of 11% when the market rate was 12%. The bonds pay interest semi-annually. Assume that the bonds were issued for $565,710. Prepare an amortization table for the first three payments. Semiannual Interest Period Semiannual Interest Expense Semiannual Interest Payment Amortization of Discount Ending Carrying Value 1 2 3 PLEASE NOTE: All dollar amounts will be rounded to whole dollars with "$" and commas as needed (i.e. $12,345).
Waldron Inc. issued $400,000 bonds with a stated rate of 7% when the market rate was 5%. They are 3-year bonds with interest to be paid annually. Assume that the bonds were issued for $421,840. Prepare an amortization table for the first three payments. Annual Annual Interest Annual Interest Amortization of Ending Carrying Interest Expense Payment Premium Value Period 1 2 3 PLEASE NOTE: All whole dollar amounts will be with "$" and commas as needed (i.e. $12,345). [HINT - You definitely will want to use this EXCEL spreadsheet Chapter13 HW-02 #1 #2 Worksheets.xlsx a to assist in your calculations.)
3. Diana Inc. issued $100,000 of its 9%, 5-year bonds for $96,149 when the market rate was 10%. The bonds pay interest semi-annually. Prepare an amortization table for the first three payments. Semiannual Interest Period Semiannual Interest Expense Semiannual Interest Payment Amortization of Discount Ending Carrying Value 1 2 3 PLEASE NOTE: All dollar amounts will be rounded to whole dollars with "$" and commas as needed (i.e. $12,345).