Solutions for Bond Amortization Problems for demonstration problems

# Accounting: Tools for Business Decision Making

This preview shows pages 1–2. Sign up to view the full content.

Bond Amortization Tables For Demonstration Problems Change facts to Semi-annual interest paid June 30 and December 31. Note: for 10-10A parts c and e are irrelevant with revised interest dates.     For 10-11A, Do parts a and b only. Problem 10-10A Term = 10 years Face Value \$1,200,000.00 Stated Rate 7% Discount \$80,521.00 Effective Rate 8% Issue Price \$1,119,479.00 Premium or Premium or  Bond  Semiannual  Cash Interest  Discount Discount Carrying interest date Interest Expense Amortization Acct. Balance Value 1/1/2007 \$80,521.00 \$1,119,479.00 6/30/2007 \$42,000.00 \$44,779.16 \$2,779.16 \$77,741.84 \$1,122,258.16 12/31/2007 \$42,000.00 \$44,890.33 \$2,890.33 \$74,851.51 \$1,125,148.49 6/30/2008 \$42,000.00 \$45,005.94 \$3,005.94 \$71,845.57 \$1,128,154.43 12/31/2008 \$42,000.00 \$45,126.18 \$3,126.18 \$68,719.40 \$1,131,280.60 Journal Entries: a) 1/1/2007 Cash \$1,119,479.00 Bond Discount \$80,521.00          Bonds Payable \$1,200,000.00 d)  6/30/2007

This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

### Page1 / 2

Solutions for Bond Amortization Problems for demonstration problems

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document
Ask a homework question - tutors are online