The Bradford Company issued 12% bonds, dated January 1, with aface amount of $90 million on January 1, 2016. The bonds mature onDecember 31, 2025 (10 years). For bonds of similar risk andmaturity, the market yield is 14%. Interest is paid semiannually onJune 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) fromthe tables provided.)
Required: 1. Determine the price of the bonds at January 1, 2016.(Enter your answers whole dollars.)
Table values are based on: n = i = Cash Flow Amount Present Value Interest Principal Price of bonds
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Myriad Solutions, Inc., issued 12% bonds, dated January 1, witha face amount of $510 million on January 1, 2016 for $455,970,906.The bonds mature on December 31, 2025 (10 years). For bonds ofsimilar risk and maturity the market yield is 14%. Interest is paidsemiannually on June 30 and December 31.
Required: Complete the table below to calculate the amounts related to thebonds that Myriad would report in its financial statements.(Enter your answers in whole dollars.)
Period-End Cash Interest Paid Bond Interest Expense Discount Amortization Carrying Value 01/01/2016 06/30/2016 $0 0 12/31/2016 0 0 Total $0 $0
The Bradford Company issued 12% bonds, dated January 1, with aface amount of $90 million on January 1, 2016. The bonds mature onDecember 31, 2025 (10 years). For bonds of similar risk andmaturity, the market yield is 14%. Interest is paid semiannually onJune 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) fromthe tables provided.) |
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| 1. | Determine the price of the bonds at January 1, 2016.(Enter your answers whole dollars.) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Related questions
Universal Foods issued 12% bonds, dated January 1, with a faceamount of $225 million on January 1, 2016. The bonds mature onDecember 31, 2025 (10 years). The market rate of interest forsimilar issues was 14%. Interest is paid semiannually on June 30and December 31. Universal uses the straight-line method. (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 tablesprovided.) |
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| 1. | Determine the price of the bonds at January 1, 2016.(Enter your answer in whole dollars.) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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| 5. | What is the amount(s) related to the bonds that Patey willreport in its balance sheet at December 31, 2016? ////////////
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| The Bradford Company issued 10% bonds, dated January 1, with aface amount of $80 million on January 1, 2013. The bonds mature onDecember 31, 2022 (10 years). For bonds of similar risk andmaturity, the market yield is 12%. Interest is paid semiannually onJune 30 and December 31.
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| 2. | Prepare the journal entry to record their issuance by TheBradford Company on January 1, 2013. (Enter your answers inwhole dollars. If no journal entry is required for a transaction,select "No journal entry required" in the first accountfield.) |
