Reference no: EM131106214
(Information Related to Various Bond Issues) Pawnee Inc. has issued three types of debt on January 1, 2010, the start of the company's fiscal year.
(a) $10 million, 10-year, 13% unsecured bonds, interest payable quarterly. Bonds were priced to yield 12%.
(b) $25 million par of 10-year, zero-coupon bonds at a price to yield 12% per year
(c) $15 million, 10-year, 10% mortgage bonds, interest payable annually to yield 12%.Prepare a schedule that
identifies the following items for each bond:
(1) maturity value,
(2) number of interest periods over life of bond,
(3) stated rate per each interest period,
(4) effective interest rate per each interest period,
(5) payment amount per period, and
(6) present value of bonds at date of issue.
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Prepare journal entries to record the retirement
: Prepare the entry required on December 31, 2011, to record the payment of the first 6 months' interest and the amortization of premium on the bonds.
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What is its present value
: A 5-year $100 ordinary annuity has an annual interest rate of 10%. What is its present value?
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What would the future and present values
: What would the future and present values be if it was an annuity due?
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Prepare the journal entries necessary to record issue
: Prepare the journal entries necessary to record issue of the new bonds and the refunding of the bonds.
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Number of interest periods over life of bond
: (Information Related to Various Bond Issues) Pawnee Inc. has issued three types of debt on January 1, 2010, the start of the company's fiscal year.
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Prepare the journal entry at the date of the bond issuance
: (Entries for Bond Transactions) On January 1, 2010, Osborn Company sold 12% bonds having a maturity value of $800,000 for $860,651.79, which provides the bondholders with a 10% yield.
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How old will each be when she becomes a millionaire
: Kitty invested in the New Issue Bio-Tech Fund, which invests in small, newly issued bio-tech stocks and whose investors have earned an average of 20% per year in the fund's relatively short history. a. If the two women's funds earn the same returns i..
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How much should you raise your product prices
: you would have to borrow funds from your bank at a nominal 12%, daily compounding based on a 360-day year. You want to increase your base prices by exactly enough to offset your bank interest cost. To the closest whole percentage point, by how much s..
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The payment of interest and the amortization of the premium
: Will the bond interest expense reported in 2011 be the same as, greater than, or less than the amount that would be reported if the straight-line method of amortization were used?
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