Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. on june 30, 2016, singleton computers issued 8% st

On June 30, 2016, Singleton Computers issued 8% stated rate bonds with a face amount...

50.1K

Verified Solution

Question

Accounting

On June 30, 2016, Singleton Computers issued 8% stated rate bonds with a face amount of $200 million. The bonds mature on June 30, 2031 (15 years). The market rate of interest for similar bond issues was 7% (3.5% semiannual rate). Interest is paid semiannually (4.0%) on June 30 and December 31, beginning on December 31, 2016. (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 on June 30, 2016.
Table values are based on:
n =
i =
Cash Flow Amount Present Value
Interest
Principal
Price of bonds

2.

Calculate the interest expense Singleton reports in 2016 for these bonds using the effective interest method.

Period-End Cash Interest Paid Bond Interest Expense Premium Amortization Carrying Value
06/30/2016
12/31/2016 $0 0

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students