Reference no: EM131205766
When Patey Pontoons issued 4% bonds on January 1, 2016, with a face amount of $820,000, the market yield for bonds of similar risk and maturity was 5%. The bonds mature December 31, 2019 (4 years). Interest is paid semiannually on June 30 and December 31. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.)
Required: 1. Determine the price of the bonds at January 1, 2016.
2. Prepare the journal entry to record their issuance by Patey on January 1, 2016. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) 1. Record the issuance of the bonds on January 1, 2016.
3. Prepare an amortization schedule that determines interest at the effective rate each period.
4. Prepare the journal entry to record interest on June 30, 2016. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)1. Record the interest expense on June 30, 2016.
5. What is the amount(s) related to the bonds that Patey will report in its balance sheet at December 31, 2016?
6. What is the amount(s) related to the bonds that Patey will report in its income statement for the year ended December 31, 2016? (Ignore income taxes.)
7. Prepare the appropriate journal entries at maturity on December 31,(If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
1. Record the interest expense on December 31, 2019.
2. Record the retirement of the bond at maturity on December 31, 2019.
|
Importance and strategies of networking
: The next step in your personal job search plan will be to evaluate the importance and strategies of networking. Networking is something that you should plan to do your entire professional career.
|
|
Examine the higher requirements that police hiring agencies
: Compare and contrast the main ways in which Packard's crime-control model and the due process model differ in the matter of police ethics. Provide your opinion on which of the two (2) approaches lends itself to the possibility of ethical violation..
|
|
What is the equilibrium level of population
: What is the equilibrium income (y*)?________ Show your calculations. What is the equilibrium level of population (L*)? __________ Show your calculations.
|
|
Wireless security perimeter defenses matrix
: Complete the attached Wireless Security Perimeter Defenses Matrix by discussing the wireless security topics in each of the rows as they relate to a security advisory that your learning team will present to the management group of XYZ Company. Iss..
|
|
Prepare amortization schedule that determines interest
: When Patey Pontoons issued 4% bonds on January 1, 2016, with a face amount of $820,000, the market yield for bonds of similar risk and maturity was 5%. The bonds mature December 31, 2019 (4 years). Prepare the journal entry to record their issuance b..
|
|
Cross-tabulations called contingency tables
: When are cross-tabulations called contingency tables?
|
|
Describe how the informal lessons were conveyed
: Describe how the informal lessons were conveyed and the impact they had on the formal lessons. Initial responses should be a minimum of 300-words.
|
|
Mission and values of better world books
: What are the mission and values of Better World Books? Critically evaluate their usefulness to the company's management in formulating strategy.
|
|
Assume the standard deduction
: Louis files as a single taxpayer. In April of this year he received a $1,120 refund of state income taxes that he paid last year. How much of the refund, if any, must Louis include in gross income under the following independent scenarios? Assume the..
|