Day 12_Bond_Discount_web-1 - To record annual payment x3...

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Lucky Co - Bond Discount Interest = 100,000.00 x 0.08 = 8,000.00 PVA of $8,000 for 3 periods + PV of $100,000 due at end of 3 periods at 10% = $95,026.30 8,000 PMT 100,000 FV 10 I/Y 3 N CPT PV 95,026.30 . Ending Date Payments Interest 10% Principal/Discount Principal Balance 1/1/x1 95,026.30 12/31/x1 8,000.00 9,502.63 (1,502.63) 96,528.93 12/31/x2 8,000.00 9,652.89 (1,652.89) 98,181.82 12/31/x3 8,000.00 9,818.18 (1,818.18) 100,000.01 12/31/x3 100,000.00 100,000.00 0.01 rounding
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Lucky Co - Bond Discount 1/1/20x1 Cash 95,026.30 Bond Discount 4,973.70 Bond Payable 100,000.00 Issued bond at a discount 12/31/20x1 Interest Expense 9,502.63 Bond Discount 1,502.63 Cash 8,000.00 To record annual payment 12/31/20x2 Interest Expense 9,652.89 Bond Discount 1,652.89 Cash 8,000.00
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Unformatted text preview: To record annual payment 12/31/20x3 Interest Expense 9,818.18 Bond Discount 1,818.18 Cash 8,000.00 To record annual payment 12/31/20x3 Bond Payable 100,000.00 Cash 100,000.00 To record maturity and payoff of bond Lucky Co - Bond Discount Bonds Payable Bond Discount 100,000.001/1/20x1 1/1/20x1 4,973.70 12/31/20x3 100,000.00 1,502.6312/31/20x1 3,471.07 1,652.8912/31/20x2 1,818.18 1,818.1812/31/20x3 12/31/x1 12/31/x2 12/31/x3 Balance Sheet Liabilities Current Liabilities Bonds Payable 100,000 Less: Bond Discount (1,818) Net Bonds Payable 98,182 Total Current Liabilities Long-Term Debt Bonds Payable 100,000 Less: Bond Discount (3,471) Net Bonds Payable 96,529 Total Long-Term Debt...
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