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Devry acct 305 week 6 homework

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Question;Week Six - Homework Exercises E14-2, E14-3, E14-5, E14-18;E14-2 Determine the;price of a $1 million bond issue under each of the following independent;assumptions;Maturity Interest Paid Stated Rate Effective (Market) Rate;1 10 years annually 10% 12%;2 10 years semiannually 10% 12%;3 10 years semiannually 12% 10%;4 20 years semiannually 12% 10%;5 20 years semiannually 12% 12%;E14-3 The Bradford;Company issued 10% bonds, dated January 1, with a face amount of $80 million on;January 1, 2013. The bonds mature on December 31, 2022 (10 years). For bonds of;similar risk and maturity, the market yield is 12%. Interest is paid;semiannually on June 30 and December 31.;Required: 1. Determine the price of the bonds at January;1, 2013.;2. Prepare the journal entry to record their;issuance by The Bradford Company on January 1, 2013.;3. Prepare the journal entry to record;interest on June 30,2013 (at the;effective rate).;4. Prepare the journal entry to record;interest on December 31, 2013 (at the effective rate).;E14-5 Myraid;Solutions, Inc., issued 10% bonds, dated January 1, with a face amount of $320;million on January 1, 2013 for $283,294,720. The bonds mature on December 31;2022 (10 years). For bonds of similar risk and maturity the market yield is;12%. Interest is paid semiannually on June 30 and December 31.;Required: 1.;What would be the net amount of the liability Myriad would report in its;balance sheet at December 31, 2013?;2. What;would be the amount related to the bonds that Myriad would report in its income;statement for the year ended December 31, 2013?;3. What;would be the amount(s) related to the bonds that Myriad would report in its;statement of cash flows for the year ended December 31, 2013?;E14-18 American Food;Services, Inc., acquired a packaging machine from Barton and Barton;Corporation. Barton and Barton completed construction of the machine on January;1, 2013. In payment for the $4 million machine, American Food Services issued a;four-year installment note to be paid in four equal payments at the end of each;year. The payments include interest at the rate of 10%.;Required: 1.;Prepare the journal entry for American Food Services? purchase of the machine;on January 1, 2013.;2.;Prepare an amortization schedule for the four-year term of the installment;note.;3.;Prepare the journal entry for the first installment payment on December 31;2013.;4.;Prepare the journal entry for the third installment payment on December 31;2015.

 

Paper#38689 | Written in 18-Jul-2015

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