Bond Pricing Project.xlsx - Part A Part B Discount Bond Annual Payment 40(4.32948)= Payment at end 1000.78353)= Issue Price 173.18 784.53 Cash Discount

Bond Pricing Project.xlsx - Part A Part B Discount Bond...

This preview shows page 1 - 4 out of 4 pages.

Part A Discount Bond PV Annual Payment: 40(4.32948)= $ 173.18 Payment at end: 1000(.78353)= $ 783.53 Issue Price: 173.18+784.53 $ 956.71 (per bond) Part B 1/1/2017 Dr Cr Cash 95671 Discount on Bond Payable 4329 Bond Payable 100000 Part C Next Worksheet Part D 12/31/2017 Interest Expense 4784 Discount on Bonds Payable 784 Cash 4000 12/31/2018 Interest Expense 4823 Discount on Bonds Payable 823 Cash 4000 12/31/2019 Interest Expense 4864 Discount on Bonds Payable 864 Cash 4000 12/31/2020 Interest Expense 4907 Discount on Bonds Payable 907 Cash 4000 12/31/2021 Interest Expense 4952 Discount on Bonds Payable 952 Cash 4000 Part E 12/31/2021 Bond Payable 100000 Cash 100000
Image of page 1
Journal Entry Balance Sheet Period End Cash Paid Bonds Payable Carrying Value 1/1/2017 100000 4329 95671 12/31/2017 4000 784 4784 100000 3545 96455 12/31/2018 4000 823 4823 100000 2723 97277 12/31/2019 4000 864 4864 100000 1859 98141 12/31/2020 4000 907 4907 100000 952 99048 12/31/2021 4000 952 4952 100000 0 100000 Amortization Discount Interest Expense Discount on Bonds Payable
Image of page 2
Part A Premium Bond PV Annuity: 40(4.57971)= $ 183.19 Single Payment: 1000(.86261)= $ 862.61 Issue Price: 183+863=
Image of page 3
Image of page 4

You've reached the end of your free preview.

Want to read all 4 pages?

Unformatted text preview: $ 1,045.80 (per bond) Part B 1/1/2017 Dr Cr Cash 104580 Premium on Bond Payable 4580 Bond Payable 100000 Part C Next Worksheet Part D 12/31/2017 3137 Interest Expense 863 Premium on Bonds Payable 4000 Cash 12/31/2018 3112 Interest Expense 888 Premium on Bonds Payable 4000 Cash 12/31/2019 3085 Interest Expense 915 Premium on Bonds Payable 4000 Cash 12/31/2020 3057 Interest Expense 943 Premium on Bonds Payable 4000 Cash 12/31/2021 3029 Interest Expense 971 Premium on Bonds Payable 4000 Cash 1000000 Part E 12/31/2021 Bond Payable 100000 Cash Journal Entry Balance Sheet Period End Cash Paid 1/1/2017 100000 4580 104580 12/31/2017 4000 863 3137 100000 3717 103717 12/31/2018 4000 888 3112 100000 2829 102829 12/31/2019 4000 915 3085 100000 1914 101914 12/31/2020 4000 943 3057 100000 971 100971 12/31/2021 4000 971 3029 100000 100000 Amortization Premium Interest Expense Bonds Payable Premium on Bonds Payable Carrying Value...
View Full Document

  • Spring '14
  • BarbaraM.Arel

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern

Stuck? We have tutors online 24/7 who can help you get unstuck.
A+ icon
Ask Expert Tutors You can ask You can ask You can ask (will expire )
Answers in as fast as 15 minutes
A+ icon
Ask Expert Tutors