12-3 and 12-4_Ryan_Company_Bonds

12-3 and 12-4_Ryan_Company_Bonds - Bonds Problem 12-3 Face...

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Bonds Problem 12-3 Face Value Face Rate Payments Interest = 100,000 x 0.10 = 10,000 10,000 PMT 100,000 FV 8 I/Y 5 N CPT PV 107,985.42 . Ending Payments Interest 8% Principal/Premium Principal Balance 1/1/x1 107,985.42 12/31/x1 10,000.00 8,638.83 1,361.17 106,624.25 12/31/x2 10,000.00 8,529.94 1,470.06 105,154.19 12/31/x3 10,000.00 8,412.34 1,587.66 103,566.53 12/31/x4 10,000.00 8,285.32 1,714.68 101,851.85 12/31/x5 10,000.00 8,148.15 1,851.85 100,000.00 12/31/x5 100,000.00 100,000.00 (0.00) Rounding
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1/1/20x1 Cash 107,985.42 Bond Premium 7,985.42 Bond Payable 100,000.00 Issued bond at a premium 12/31/20x1 Interest Expense 8,638.83 Bond Premium 1,361.17 Cash 10,000.00 To record annual payment 12/31/20x2 Interest Expense 8,529.94 Bond Premium 1,470.06 Cash 10,000.00 To record annual payment 12/31/20x3 Interest Expense 8,412.34 Bond Premium 1,587.66 Cash 10,000.00 To record annual payment 12/31/20x4 Interest Expense 8,285.32 Bond Premium 1,714.68 Cash 10,000.00 To record annual payment 12/31/20x5 Interest Expense 8,148.15 Bond Premium 1,851.85 Cash 10,000.00 To record annual payment
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12-3 and 12-4_Ryan_Company_Bonds - Bonds Problem 12-3 Face...

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