Reference no: EM132896279
Question - Rodgers Corporation produces and sells football equipment. On July 1, 20Y1, Rodgers issued $15,500,000 of 10-year, 13% bonds at a market (effective) interest rate of 12%, receiving cash of $16,388,844.
Interest on the bonds is payable semiannually on December 31 and June 30. The fiscal year of the company is the calendar year.
1. Journalize the entry to record the amount of cash proceeds from the issuance of the bonds on July 1, 20Y1.
2. Journalize the entries to record the following:
a. The first semiannual interest payment on December 31, 20Y1, and the amortization of the bond premium, using the straight-line method. Round to the nearest dollar.
b. The interest payment on June 30, 20Y2, and the amortization of the bond premium, using the straight-line method. Round to the nearest dollar.
3. Determine the total interest expense for 20Y1. Round to the nearest dollar.
4. Will the bond proceeds always be greater than the face amount of the bonds when the contract rate is greater than the market rate of interest?
5. Compute the price of $16,388,844 received for the bonds by using the present value. Round your PV values to 5 decimal places and the final answers to the nearest dollar. Your total may vary slightly from the price given due to rounding differences.
|
Compute Martinez net cash provided by operating activities
: Question - In 2020, Martinez Corporation reported a net loss of $73,900. Compute Martinez's net cash provided (used) by operating activities
|
|
Prepare the Statement of Affairs as at today date
: Plant & Equipment can be auctioned off and will sell for $70,000. Prepare the Statement of Affairs as at today date
|
|
Find percent of car prices
: The sample mean of cars in Pennsylvania is $18,000 with a standard deviation of $250. What percent of car prices fall between $17,250 and $18,750?
|
|
What is business ethics
: What is business ethics? Can you give examples of ethical issues?
|
|
Journalize the entry to record the amount of cash proceeds
: Rodgers issued $15,500,000 of 10-year, 13% bonds at a market (effective) interest rate of 12%, Journalize the entry to record the amount of cash proceeds
|
|
Describe five disadvantages of data mining
: By using your own words, describe FIVE (5) disadvantages of data mining.
|
|
Are any of the costs incurred by Satellite deferrable
: $100 commission paid to an internal employee dedicated solely to selling activities. Are any of the costs incurred by Satellite deferrable and why
|
|
How exposed is the netherlands to globalization
: How exposed is the Netherlands to globalization? What have been the political, economic, technological, social, environmental, or other impacts of the globaliza
|
|
Strategic implementation using the levers of structure
: Chapter 11 looks at Strategic Implementation using the levers of structure, culture and control to put a strategy in place. Ideally, firms will use a combinatio
|