Accounting 101
EXAM3 EXTRA CREDIT
1.
Ultimate Butter Popcorn issues 6%, 6-year bonds with a face amount of $47,000. The market interest rate for bonds of similar risk and maturity is 6%. Interest is paid semiannually.
At what price will the bonds issue? (Do not round PV factors. Round your answer to the nearest dollar amount. Omit the "$" sign in your response.) Issue price
$ 47,000
2.
Ultimate Butter Popcorn issues 7%, 6-year bonds with a face amount of $49,000. The market interest rate for bonds of similar risk and maturity is 8%. Interest is paid semiannually.
At what price will the bonds issue? (Do not round PV factors. Round your answer to the nearest dollar amount. Omit the "$" sign in your response.) Issue price
$ 46,701
3.
Ultimate Butter Popcorn issues 5%, 5-year bonds with a face amount of $52,000. The market interest rate for bonds of similar risk and maturity is 4%. Interest is paid semiannually.
At what price will the bonds issue? (Do not round PV factors. Round your answer to the nearest dollar amount. Omit the "$" sign in your response.) Issue price
$ 54,336
4.
Discount Pizza retires its 5% bonds for $54,000 before their scheduled maturity. At the time, the bonds have a carrying value of $52,355. Record the early retirement of the bonds. (Omit the "$" sign in your response.) General Journal
Debit
Credit Bonds payable
Loss
Cash 54,000
5.
Premium Pizza retires its 7% bonds for $60,000 before their scheduled maturity. At the time, the bonds have a carrying value of $63,008. Record the early retirement of the bonds. (Omit the "$" sign in your response.) General Journal
Debit
Credit Bonds payable 63,008 Gain
Cash
CEC Entertainment , which owns the Chuck E. Cheese pizza chain, has the following selected data ($ in millions): CEC
1.
Ultimate Butter Popcorn issues 6%, 6-year bonds with a face amount of $47,000. The market interest rate for bonds of similar risk and maturity is 6%. Interest is paid semiannually.
At what price will the bonds issue? (Do not round PV factors. Round your answer to the nearest dollar amount. Omit the "$" sign in your response.) Issue price
$ 47,000
2.
Ultimate Butter Popcorn issues 7%, 6-year bonds with a face amount of $49,000. The market interest rate for bonds of similar risk and maturity is 8%. Interest is paid semiannually.
At what price will the bonds issue? (Do not round PV factors. Round your answer to the nearest dollar amount. Omit the "$" sign in your response.) Issue price
$ 46,701
3.
Ultimate Butter Popcorn issues 5%, 5-year bonds with a face amount of $52,000. The market interest rate for bonds of similar risk and maturity is 4%. Interest is paid semiannually.
At what price will the bonds issue? (Do not round PV factors. Round your answer to the nearest dollar amount. Omit the "$" sign in your response.) Issue price
$ 54,336
4.
Discount Pizza retires its 5% bonds for $54,000 before their scheduled maturity. At the time, the bonds have a carrying value of $52,355. Record the early retirement of the bonds. (Omit the "$" sign in your response.) General Journal
Debit
Credit Bonds payable
Loss
Cash 54,000
5.
Premium Pizza retires its 7% bonds for $60,000 before their scheduled maturity. At the time, the bonds have a carrying value of $63,008. Record the early retirement of the bonds. (Omit the "$" sign in your response.) General Journal
Debit
Credit Bonds payable 63,008 Gain
Cash
CEC Entertainment , which owns the Chuck E. Cheese pizza chain, has the following selected data ($ in millions): CEC