Day 12_Bond_Premiums_web

Day 12_Bond_Premiums_web - 12/31/20x3 Interest Expense...

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Lucky Co. - Bond Premium 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 @ 6% = $105,346.02 8,000 PMT 100,000 FV 6I/Y 3N CPT PV 105,346.02 . Ending Payments Interest 6% Principal/Premium Principal Balance 1/1/x1 105,346.02 12/31/x1 8,000.00 6,320.76 1,679.24 103,666.78 12/31/x2 8,000.00 6,220.01 1,779.99 101,886.79 12/31/x3 108,000.00 6,113.21 101,886.79 0.00
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Lucky Co. - Bond Premium 1/1/20x1 Cash 105,346.02 Bond Premium 5,346.02 Bond Payable 100,000.00 Issued bond at a premium 12/31/20x1 Interest Expense 6,320.76 Bond Premium 1,679.24 Cash 8,000.00 To record annual payment 12/31/20x2 Interest Expense 6,220.01 Bond Premium 1,779.99 Cash 8,000.00 To record annual payment
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Unformatted text preview: 12/31/20x3 Interest Expense 6,113.21 Bond Premium 1,886.79 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 Premium Bonds Payable Bond Premium 100,000.00 1/1/20x1 1/1/20x1 12/31/20x3 100,000.00 12/31/x1 1,679.24 3,666.78 12/31/x2 1,779.99 1,886.79 12/31/x3 1,886.79 12/31/x1 12/31/x2 12/31/x3 Balance Sheet Liabilities Current Liabilities Bond Payable 100,000 Add: Bond Premium 1,887 Total Bonds Payable 101,887 0 Total Current Liabilities Long-Term Debt Bonds Payable 100,000 Add: Bond Premium 3,667 Total Bonds Payable 103,667 0 0 Total Long-Term Debt...
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This note was uploaded on 09/12/2010 for the course ACCT 101 taught by Professor Drkirch during the Spring '10 term at Ohio University- Athens.

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Day 12_Bond_Premiums_web - 12/31/20x3 Interest Expense...

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