HW #3 HW #3 Read chapters 14 and 15 Watch on YouTube: ACC XXXXXXXXXXPV FV ACC 102 Bond JE ACC 102 Trading Securities ACC 102 Investment in HTM Securities Carefully review thefollowing tabs: Future...

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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 #1Problem #1 a.Calculate the selling price of the following 10-year bond issue: a # bonds700 Bond rate of interest5.4% Interest payablesemi-annually Market rate of interest5.0%DebitCredit Bond maturity (face) value$1,000b b.record the bond issue described in part (a) c c.for bonds in part (a) record the first TWO semi-annual interest payment and amortization using the effective interest method d.for bonds in part (a) record the FIRST semi-annual interest payment and amortization using the straight-line method method d e.Calculate the selling price of the following 5-year bond issue: # bonds600 Bond rate of interest5.8% Interest payablesemi-annually Market rate of interest6.0% Bond maturity (face) value$1,000e Problem #2 Problem #2 The following transactions pertain to Patricia's Pirogue's Inc.: 1-Jan-20900 TEN-year bonds with a face amount of $1,000, bearing interest at 5.0% payable semi-annually are sold for $859,078 The market/effective rate of interest is 5.6%.DebitCredit a1-Jan-20 30-Jun-20Semi-annual interest is paid - amortization of discount is recorded 31-Dec-20Semi-annual interest is paid - amortization of discount30-Jun-20 is recorded Instructions: aRecord the above transactions using the "effective interest" method bCompute the carrying value of the bonds at December 31, 202031-Dec-20 assuming the effective interest method of amortization is used. cRecord the above transactions using the "straight line" method dCompute the carrying value of the bonds at December 31, 2020 assuming the straight-line method of amortization is used. ePresent the entry for the retirement of the bonds on December 31, 2023b (four years from issue date) for $1,050 cash per bond (S/L method used) c1-Jan-20 30-Jun-20 31-Dec-20 d e31-Dec-23 Problem #3 Trading Securities Homework Problem Dr. Brenner Inc. provided you with the following information regarding investments in trading securities: 1-Dec-20 Fair Investment (Company name)SharesCostValue Shirley Semolina2000$ 120,000$ 114,000 Lauren's Lasagna1000$ 70,000$ 69,000 Claribel Capellini1500$ 121,500$ 126,000 Robbie Rigatoni2000$ 76,000$ 80,000Problem #3 $ 387,500$ 389,000DebitCredit During December the following transactions occurred:a1-Dec-20 9-Dec500shrs of Shirley Semolina were sold for $ 27,500 16-Dec800shrs of Lauren's Lasagna were sold for$ 61,600 20-Dec400shrs. of Victoria's Sono Buoni were acquired for$ 11,300b9-Dec 31-Dec2000shrs of Robbie Rigatoni were sold for$ 65,000 On December 31, 2020, the following securities remained in the Dr. Brenner's trading portfolio:16-Dec 31-Dec-20 Fair Investment (Company name)SharesValue Shirley Semolina$ 85,50020-Dec Lauren's Lasagna16,800 Claribel Capellini124,500 Victoria's Sono Buoni11,60031-Dec $ 238,400 Instructions: Prepare: c31-Dec athe adjusting journal entry required on November 30, 2020 Assume $5,200 credit balance in the securities fair value adjustment account prior to adjustment bthe journal entries to record the December purchase & sale transactions cthe adjusting journal entry required on December 31, 2020 Problem #4 Investment in Bonds (HTM Securities) HW On Jan. 1, 2020 Philo Kvetch purchased 50 bonds @ $1,013.40 per bond. The new bond issue was priced such that the bonds have an yield (annual) of 4.2% The bond (annual coupon) rate is 4.5% over the 5-year term of the bonds. The bonds pay interest semi-annually.Problem #4 DebitCredit 1-Jan-20Prepare the entry for the purchase of the bonds1-Jan-20 30-Jun-20Prepare the entry for the first semi-annual receipt 30-Jun-20 of interest and amortization using the effective interest method. 31-Dec-20Prepare the entry for the second semi-annual receipt 31-Dec-20 of interest and amortization using the effective interest method. 30-Jun-20Prepare the entry for the first semi-annual receipt 30-Jun-20 of interest and amortization using the straight line method. 31-Dec-20Prepare the entry for the second semi-annual receipt 31-Dec-20 of interest and amortization using the straight line method. Problem #5 On Jan. 1, 2020 Ardeth Bay purchased 80 bonds @ $989.80 per bond. The new bond issue was priced such that the bonds have an yield (annual) of 5.2%. The bond (annual coupon) rate is 5.0% over the 6-year term of the bonds. The bonds pay interest semi-annually.Problem #5 DebitCredit 1-Jan-20Prepare the entry for the purchase of the bonds1-Jan-20 30-Jun-20Prepare the entry for the first semi-annual receipt 30-Jun-20 of interest and amortization using the effective interest method. 31-Dec-20Prepare the entry for the second semi-annual receipt 31-Dec-20 of interest and amortization using the effective interest method. 30-Jun-20Prepare the entry for the first semi-annual receipt 30-Jun-20 of interest and amortization using the straight line method. 31-Dec-20Prepare the entry for the second semi-annual receipt 31-Dec-20 of interest and amortization using the straight line method.
Answered 17 days AfterOct 10, 2021

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
116 Votes
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...
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