Answer To: HW #3 HW #3 Read chapters 14 and 15 Watch on YouTube: ACC XXXXXXXXXXPV FV ACC 102 Bond JE ACC 102...
Nitish Lath answered on Oct 27 2021
HW #3
HW #3
Read chapters 14 and 15
Watch on YouTube:
ACC 102 214 PV FV
ACC 102 Bond JE
ACC 102 Trading Securities
ACC 102 Investment in HTM Securities
Carefully review thefollowing tabs:
Future value
Present Value
Formulas
Loans
Bonds
Bonds JE
Investments
Trading Securities
HTM Securities
Problems for submission & grading
Problems 1 through 5 - below
Please submit your solutions as an Excel file
by November 1st
Problem #1 Problem #1
a. Calculate the selling price of the following 10-year bond issue: a Bond selling price PV of interest obligations+ PV of maturity value
# bonds 700 Bond selling price 1031
Bond rate of interest 5.4%
Interest payable semi-annually
Market rate of interest 5.0% Debit Credit 721,700 18,042.50 18,900.00 857.50 720,843
Bond maturity (face) value $1,000 b Cash 721,700.00 720,843 18,021.06 18,900.00 878.94 719,964
Bonds payable 1,000.00 719,964 17,999.09 18,900.00 900.91 719,063
b. record the bond issue described in part (a) Premium on bonds payable 720,700.00 719,063 17,976.57 18,900.00 923.43 718,139
718,139 17,953.48 18,900.00 946.52 717,193
c Interest expenses 18,042.50 717,193 17,929.82 18,900.00 970.18 716,223
c. for bonds in part (a) record the first TWO semi-annual interest payment and Premium on bonds payable 857.50 716,223 17,905.56 18,900.00 994.44 715,228
amortization using the effective interest method Cash 18,900.00 715,228 17,880.70 18,900.00 1,019.30 714,209
714,209 17,855.22 18,900.00 1,044.78 713,164
Interest expenses 18,021.06 713,164 17,829.10 18,900.00 1,070.90 712,093
Premium on bonds payable 878.94 712,093 17,802.33 18,900.00 1,097.67 710,995
d. for bonds in part (a) record the FIRST semi-annual interest payment and Cash 18,900.00 710,995 17,774.89 18,900.00 1,125.11 709,870
amortization using the straight-line method method 709,870 17,746.76 18,900.00 1,153.24 708,717
708,717 17,717.93 18,900.00 1,182.07 707,535
d Interest expenses 17815 707,535 17,688.37 18,900.00 1,211.63 706,323
Premium on bonds payable 1085 706,323 17,658.08 18,900.00 1,241.92 705,081
e. Calculate the selling price of the following 5-year bond issue: Cash 18,900.00 705,081 17,627.04 18,900.00 1,272.96 703,808
# bonds 600 703,808 17,595.21 18,900.00 1,304.79 702,504
Bond rate of interest 5.8% Interest expenses 17815 702,504 17,562.59 18,900.00 1,337.41 701,166
Interest payable semi-annually Premium on bonds payable 1085 701,166 17,529.16 18,900.00 1,370.84 699,795
Market rate of interest 6.0% Cash 18,900.00
Bond maturity (face) value $1,000 e
Bond selling price PV of interest obligations+ PV of...