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Solutions for Bond Amortization Problems for homework problems

# Accounting: Tools for Business Decision Making

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Bond Amortization Tables For Homework Problems Change facts to Semi-annual interest paid June 30 and December 31. Note: for 10-10B parts c and e are irrelevant with revised interest dates.     For 10-11B, Do parts a and b only. Problem 10-10B Term = 10 years Face Value \$1,400,000.00 Stated Rate 12% Premium \$172,048.00 Effective Rate 10% Issue Price \$1,572,048.00 Premium or Premium or  Bond  Semiannual  Cash Interest  Discount Discount Carrying interest date Interest Expense Amortization Acct. Balance Value 1/1/2007 \$172,048.00 \$1,572,048.00 6/30/2007 \$84,000.00 \$78,602.40 \$5,397.60 \$166,650.40 \$1,566,650.40 12/31/2007 \$84,000.00 \$78,332.52 \$5,667.48 \$160,982.92 \$1,560,982.92 6/30/2008 \$84,000.00 \$78,049.15 \$5,950.85 \$155,032.07 \$1,555,032.07 12/31/2008 \$84,000.00 \$77,751.60 \$6,248.40 \$148,783.67 \$1,548,783.67 Journal Entries: a) 1/1/2007 Cash \$1,572,048.00          Bond Premium \$172,048.00          Bonds Payable \$1,400,000.00 d)  6/30/2007 Interest Expense \$78,602.40 Bond Premium \$5,397.60          Cash \$84,000.00 d) 12/31/2007 Interest Expense \$78,332.52 Bond Premium \$5,667.48          Cash \$84,000.00

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Bond Amortization Tables For Homework Problems Change facts to Semi-annual interest paid June 30 and December 31. Note: for 10-10B parts c and e are irrelevant with revised interest dates.
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Solutions for Bond Amortization Problems for homework problems

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