410. On January 1, 2021, Frontier World issues $39.3 million of 7% bonds, due in 10 years, with interest payable semiannuallyon June 30 and December 31 each year. The proceeds will be used to build a new ride that combines a roller coaster, awater ride, a dark tunnel, and the great smell of outdoor barbeque, all in one ride. 3-a. If the market rate is 8%, calculatethe issue price.(FV of $1, PV of $1, FVA of $1, and PVA of $1) (Use appropriate factor(s) from the tables provided. Do not round interest ratefactors. Enter your answers in dollars not in millions. Round "Market interest rate" to 1 decimal place. Round your finalanswers to the nearest whole dollar.)

BOND Bond is a Financial Security which is Generally Issued by the Corporations, Government &…

Answered: On January 1, 2021, Frontier World…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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On January 1, 2021, Frontier World issues $39.3 million of 7% bonds, due in 10 years, with interest payable semiannually on June 30 and December 31 each year. The proceeds will be used to build a new ride that combines a roller coaster, a water ride, a dark tunnel, and the great smell of outdoor barbeque, all in one ride. 3-a. If the market rate is 8%, calculate the issue price. (FV of $1, PV of $1, FVA of $1, and PVA of $1) (Use appropriate factor(s) from the tables provided. Do not round interest rate factors. Enter your answers in dollars not in millions. Round "Market interest rate" to 1 decimal place. Round your final answers to the nearest whole dollar.) Bond Characteristics Amount Face amount $39,300,000 Interest payment Periods to maturity Market interest rate Issue price 3-b. The bonds will issue atmultiple choice A Discount A Premium Face amount
1) On January 1, 2021, Frontier World issues $39.4 million of 9% bonds, due in 20 years, with interest payable semiannually on June 30 and December 31 each year. The proceeds will be used to build a new ride that combines a roller coaster, a water ride, a dark tunnel, and the great smell of outdoor barbeque, all in one ride. 2-a. If the market rate is 10%, calculate the issue price. (FV of $1, PV of $1, FVA of $1, and PVA of $1) (Use appropriate factor(s) from the tables provided. Do not round interest rate factors. Enter your answers in dollars not in millions. Round "Market interest rate" to 1 decimal place. Round your final answers to the nearest whole dollar.) Bond Characteristics Amount Face amount $39,400,000 Interest payment Periods to maturity Market interest rate Issue price 2-b. The bonds will issue at A Discount A Premium Face amount 3)[On November 1, 2021, Aviation Training Corp. borrows $40,000 cash from Community…
On January 1, 2021, Water World issues $26 million of 7% bonds, due in 10 years, with interest payable semiannually on June 30 and December 31 each year. Water World intends to use the funds to build the world’s largest water avalanche and the “tornado”—a giant outdoor vortex in which riders spin in progressively smaller and faster circles until they drop through a small tunnel at the bottom. Required: 1. If the market rate is 6%, will the bonds issue at face amount, a discount, or a premium? Calculate the issue price. 2. If the market rate is 7%, will the bonds issue at face amount, a discount, or a premium? Calculate the issue price. 3. If the market rate is 8%, will the bonds issue at face amount, a discount, or a premium? Calculate the issue price.
On January 1, 2021, Frontier World issues $41 million of 9% bonds, due in 20 years, with interest payable semiannually on June 30 and December 31 each year. The proceeds will be used to build a new ride that combines a roller coaster, a water ride, a dark tunnel, and the great smell of outdoor barbeque, all in one ride.Required:1. If the market rate is 8%, will the bonds issue at face amount, a discount, or a premium? Calculate the issue price.2. If the market rate is 9%, will the bonds issue at face amount, a discount, or a premium? Calculate the issue price.3. If the market rate is 10%, will the bonds issue at face amount, a discount, or a premium? Calculate the issue price.
ok ht nces On January 1, 2024, Ocean World issues $39.1 million of 9% bonds, due in 20 years, with interest payable semiannually on June 30 and December 31 each year. The proceeds will be used to build a new ride that combines a roller coaster, a water ride, a dark tunnel, and the great smell of outdoor barbeque, all in one ride. Required: 1-a. If the market rate is 8%, calculate the issue price. (FV of $1. PV of $1. EVA of $1, and PVA of $1) 1-b. Will the bonds issue at face amount, a discount, or a premium? Complete this question by entering your answers in the tabs below. Req la If the market rate is 8%, calculate the issue price. (FV of $1, PV of $1, FVA of $1, and PVA of $1) (Use appropriate factor(s) from the tables provided. Enter your answers in dollars not in millions (1.e., $5.5 million should be entered as 5,500,000). Round your final answers to the nearest whole dollar.) Amount Req 1b Bond Characteristics Face amount Interest payment Number of periods Market interest rate.…
Required information [The following information applies to the questions displayed below.] On January 1, 2021, Wild Rapids Water Park issues $40.9 million of 8% bonds to finance expansion. The bonds are due in 15 years, with interest payable semiannually on June 30 and December 31 each year. 2-a. If the market rate is 8%, calculate the issue price. (FV of $1. PV of $1. FVA of $1, and PVA of $1) (Use appropriate factor(s) from the tables provided. Do not round interest rate factors. Enter your answers in dollars not in millions. Round "Market interest rate" to 1 decimal place. Round your final answers to the nearest whole dollar.) Bond Characteristics Amount Face amount Interest payment $ 40,900,000 Periods to maturity Market interest rate Issue price 2-b. The bonds will issue at O A Discount OA Premium O Face amount
[The following information applies to the questions displayed below] On January 1, 2021, Wild Rapids Water Park issues $40.0 million of 8% bonds to finance expansion. The bonds are due in 15 years, with interest payable semiannually on June 30 and December 31 each year. Required: 1-a. If the market rate is 7%, calculate the issue price (PV of $1. PV of $1, FVA of $1, and PVA of $1) (Use appropriate factor(s) from the tables provided. Do not round interest rate factors. Enter your answers in dollars not in millions. Round "Market interest rate" to 1 decimal place. Round your final answers to the nearest whole dollar.) Bond Characteristics Amount Face amount 40,000,000 Interest payment Periods to maturity Market interest rate Issue price 1-b. The bonds will issue at OA Discount OA Premium O Face amount
On January 1, 2021, Splash City issues $400,000 of 8% bonds, due in 15 years, with interest payable semiannually on June 30 and December 31 each year.Assuming the market interest rate on the issue date is 9%, the bonds will issue at $367,422. Exercise 9-8A Part 1 1. Complete the first three rows of an amortization table. (Round your intermediate and final answers to the nearest whole dollar.)
On January 1, 2021, Water Wonderland issues $20 million of 7% bonds, due in eight years, with interest payable semiannually on June 30 and December 31 each year. Use Table 2 and Table 4. 2. If the market rate is 7%, will the bonds issue at face amount, a discount, or a premium? Calculate the issue price. (Round "PV Factor" to 5 decimal places. Round other intermediate calculations and final answer to the nearest dollar amount. Enter your answer in dollars, not in millions.) The bonds issue at and the issue price is 3. If the market rate is 8%, will the bonds issue at face amount, a discount, or a premium? Calculate the issue price. (Round "PV Factor" to 5 decimal places. Round other intermediate calculations and final answer to the nearest dollar amount. Enter your answer in dollars, not in millions.) The bonds issue at and the issue price is
On January 1, 2021, Water Wonderland issues $20 million of 7% bonds, due in eight years, with interest payable semiannually on June 30 and December 31 each year. Use Table 2 and Table 4.1. If the market rate is 6%, will the bonds issue at face amount, a discount, or a premium? Calculate the issue price. (Round "PV Factor" to 5 decimal places. Round other intermediate calculations and final answer to the nearest dollar amount. Enter your answer in dollars, not in millions.) The bonds issue at and the issue price is
Required information [The following information applies to the questions displayed below] On January 1, 2021, Wild Rapids Water Park issues $40.0 million of 8% bonds to finance expansion. The bonds are due in 15 years, with interest payable semiannually on June 30 and December 31 each year. 2-a. If the market rate is 8%, calculate the issue price. (FV of $1, PV of $1. FVA of $1, and PVA of $1) (Use appropriate factor(s) from the tables provided. Do not round interest rate factors. Enter your answers in dollars not in millions. Round "Market interest rate" to 1 decimal place. Round your final answers to the nearest whole dollar.) Bond Characteristics Amount Face amount 40.000 000 Interest payment Periods to maturity Market interest rate Issue price 2-b. The bonds will issue at OA Discount OA Premium O Face amount
On October 1, 2023, Dejour Energy Inc. issued a $697,000, 10.0%, seven-year bond. Interest is to be paid annually each October 1. Dejour Energy Inc. has a November 30 year - end. (Use TABLE 14A.1 and TABLE 14A.2.). Note: Use table values for PV calculations. (Use appropriate factor(s) from the tables provided.) Required: a. Calculate the issue price of the bond assuming a market interest rate of 12.0% on the date of the bond issue. (Do not round intermediate calculations. Round the final answers to the nearest whole dollar.) b. Using the effective interest method, prepare an amortization schedule. (Do not round intermediate calculations. Round the final answers to the nearest whole dollar. Enter all the amounts as positive values.) Part 1 Record the following entries: (Round your intermediate calculations and final answers to the nearest whole dollar.) Issuance of the bonds on October 1, 2023. Adjusting entry to accrue bond interest and discount amortization on November 30, 2023.…

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