corinne id investing $200,000 in a fund that earns 8% interest compounded annually. what equalamounts can corinne withdraw at the of each of the next 20yrs?

JoeyUCF85

On March 1, 2006, Brown-Ferring Corporation issued $100 million of 12% bonds, dated January 1, 2006, for $99 million (plus accrued interest). The bonds mature on December 31, 2025, and pay interest semiannually on June 30 and December 31. Brown-Ferring’s fiscal period is the calendar year.



Required:
Determine the amount of accrued interest that was included in the proceeds received from the bond sale.
Prepare the journal entry for the issuance of the bonds by Brown-Ferring.

JoeyUCF85

The balance sheet of Indian River Electronics Corporation as of December 31, 2005, included 12.25% bonds having a face amount of $90 million. The bonds had been issued in 1998 and had a remaining discount of $3 million at December 31, 2005. On January 1, 2006, Indian River Electronics called the bonds before their scheduled maturity at the call price of 102.



Required:
Prepare the journal entry by Indian River Electronics to record the redemption of the bonds at January 1, 2006.

JoeyUCF85

On January 1, 2006, Instaform, Inc., issued 10% bonds with a face amount of $50 million, dated January 1. The bonds mature in 2025 (20 years). The market yield for bonds of similar risk and maturity is 12%. Interest is paid semiannually.


Determine the price of the bonds at January 1, 2006, and prepare the journal entry to record their issuance by Instaform.

Assume the market rate was 9%. Determine the price of the bonds at January 1, 2006, and prepare the journal entry to record their issuance by Instaform.

Assume Broadcourt Electronics purchased the entire issue in a private placement of the bonds. Using the data in requirement 2, prepare the journal entry to record their purchase by Broadcourt.