Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. on march 1, 2019, ford co. issued $1,000,000, 12%

On March 1, 2019, Ford Co. issued $1,000,000, 12% bonds at a price to yield 10%....

70.2K

Verified Solution

Question

Accounting

On March 1, 2019, Ford Co. issued $1,000,000, 12% bonds at aprice to yield 10%. The bonds pay interest semi-annually onSeptember 1 and March 1. Bond issue costs of $30,000 were incurredand expensed by Ford Co. The bonds mature on March 1, 2025. Thecompany has a September 30 year-end date.

Show the income statement and balance sheet presentation for therelated bond accounts at September 30, 2019 for Ford Co.

Issue price of the bonds
n = 12 6 years x 2 i/y= 5 PMT = - 1,000,000 x 12% x 6/12 60,000 -FV = 1,000,000 - PV= $1,088,633

May I have the full step by step calculation for theAmortization schedule?

Answer & Explanation Solved by verified expert
3.6 Ratings (551 Votes)
    See Answer
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

Q

Problem 11-11 A pension plan is obligated to make disbursements of $10 million, $2 million, and $10...

Finance
Q

-3,7 11,-15 A. Find Point Slope Form B. Find Slope Intercept C. Find X and Y intercepts Sketch a...

Basic Math
Q

Titanic Corporation has 10 million share outstanding, selling currently at a price of $50 per share....

Finance
Q

Diameter of sphere 1 9 cm 0 45 Radius of sphere 0 95 cm 0...

Physics
Q

Given A 3 5 what is A after the composition of transformations listed below x...

Geometry
Q

4 2 1 You have saved 400 350 and 340 so far After your next...

Basic Math
Q

6 52 11 z 4 For each prompt below if no solution exists enter DNE...

Algebra
Q

Why are many companies divided into departments? In responsibility accounting, why are reports to...

Accounting
Q

Sales revenue for Booker Company for 2023 amounted to $800,000. The products sold carry a...

Accounting
Q

New Era Cleaning Service, Inc. opened for business on July 1, 2010. During the month...

Accounting
Q

Objectives: In this assignment, you will be asked to experience systems analysis and design by...

Accounting
Q

Your firm wants to issue more equity but finds it costly to do so because...

Finance