bonds
bonds
Order Description
1)
Standard Pacific Shippin" rel="nofollow">ing issued $5,000,000, face amount, of 5% bonds on January 1, 2013. The bonds are 5-year bonds, and Interest is payable every 6 months. At the
time of issue, the market rate of in" rel="nofollow">interest was 6%, so the bonds were issued at a discount.
(a) Prepare calculations showin" rel="nofollow">ing that issue price was appro1imately $4,786,725.
(b) Use the effective-in" rel="nofollow">interest method of amortization, and prepare the journal entries that Standard
Pacific Shippin" rel="nofollow">ing would record on January 1, 2013, June 30, 2013, and December 31, 2013.
(c) Show how the bonds would appear on Standard Pacific Shippin" rel="nofollow">ing's December 31, 2013 balance
sheet.
2) Clear Water Coffee issued $100,000 of 7% bonds on January 1, 2011. The bonds were issued at par and pay in" rel="nofollow">interest on June 30 and December 31 of each year. By
December 31, 2015, the market rate of in" rel="nofollow">interest had in" rel="nofollow">increased, and Clear Water was able to reacquire and retire the bonds for $97,500, plus accrued in" rel="nofollow">interest.
Prepare the journal entry to record the in" rel="nofollow">interest payment and bond retirement on December 31, 2015.
Next questions use Verizon statement
What was Verizon’s negative cash flow related to debt for 2013?
What is the highest in" rel="nofollow">interest rate listed on the debt?
What are the amounts of debt maturin" rel="nofollow">ing in" rel="nofollow">in:
2014 $3933
2015 _____________________
2016 _____________________
2017 _____________________
2018 _____________________
Thereafter _____________________