S Strigel Chemical Company

S Strigel Chemical Company - $224,332 $25,668 $250,000...

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S Strigel Chemical Company Face Value of Bonds $5,000,000 Issuance Price $5,679,533 Premium on Bonds $679,533 a) 1) July 1 Cash $5,679,533 Premium on Bonds Payable $679,533 Bonds Payable $5,000,000 2) December 31 Bond Interest Expense $227,181 Premium on Bonds Payable $22,819 Bonds Interest Payable $250,000 3) July 1 Bond Interest Expense $226,269 Premium on Bonds Payable $23,731 Cash $250,000 4) December 31 Bond Interest Expense $225,319 Premium on Bonds Payable $24,681 Bonds Interest Payable $250,000 b) Bonds Payable $5,000,000 Add: Premium on Bonds Payable $608,302 $5,608,302 Not Required. The table is just to show the calculations S Strigel Chemical Company Bond Premium Amortization Effective-Interest Method - Semiannual Intere 10% Bonds Issued at 8% Issue Date January 1 $250,000 $227,181 $22,819 July 1 $250,000 $226,269 $23,731 Semiannual Interest Periods Interest to Be Paid (A) Interest Expense to Be Recorded (B) Premium Amortization ( C ) = (A-B)
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January 1 $250,000 $225,319 $24,681 $250,000
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Unformatted text preview: $224,332 $25,668 $250,000 $223,305 $26,695 $250,000 $222,238 $27,762 $250,000 $221,127 $28,873 $250,000 $219,972 $30,028 $250,000 $218,771 $31,229 $250,000 $217,522 $32,478 $250,000 $216,223 $33,777 $250,000 $214,872 $35,128 $250,000 $213,467 $36,533 $250,000 $212,005 $37,995 $250,000 $210,485 $39,515 $250,000 $208,905 $41,095 $250,000 $207,261 $42,739 $250,000 $205,551 $44,449 $250,000 $203,774 $46,226 $250,000 $201,924 $48,076 est Payments $679,533 $5,679,533 $656,714 $5,656,714 $632,983 $5,632,983 Unamortized Premium (D) = (D - C) Bond Carrying Value (E) = ($5,000,000 + D) $608,302 $5,608,302 $582,634 $5,582,634 $555,940 $5,555,940 $528,177 $5,528,177 $499,304 $5,499,304 $469,277 $5,469,277 $438,048 $5,438,048 $405,569 $5,405,569 $371,792 $5,371,792 $336,664 $5,336,664 $300,131 $5,300,131 $262,136 $5,262,136 $222,621 $5,222,621 $181,526 $5,181,526 $138,787 $5,138,787 $94,339 $5,094,339 $48,112 $5,048,112 $37 $5,000,037...
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S Strigel Chemical Company - $224,332 $25,668 $250,000...

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