Day 12_BondsZero_Coupon

Day 12_BondsZero_Coupon - To record annual payment...

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Clarence Co. Interest = 100,000 x 0 = 0 PVA of $0 for 3 periods + PV of $100,000 due at end of 3 periods @ 10% = 75,131.48 0 PMT 100,000 FV 10 I/Y 3 N CPT PV 75,131.48
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Clarence Co. Interest = 100,000 x 0% = 0 PVA of $0 for 3 periods + PV of $100,000 due at end of 3 periods @ 10% = $75,131.48 0 PMT 100,000 FV 10 I/Y 3 N CPT PV 75,131.48 Year Payments Interest 10% Principal/Discount Ending Principal Balance BB 75,131.48 1 0.00 7,513.15 (7,513.15) 82,644.63 2 0.00 8,264.46 (8,264.46) 90,909.09 3 0.00 9,090.91 (9,090.91) 100,000.00 3 100,000.00 100,000.00 (0.00)
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Clarence Co. 12/31/20x1 Cash 75,131.48 Bond Discount 24,868.52 Bond Payable 100,000.00 Issued bond at a discount 12/31/20x2 Interest Expense 7,513.15 Bond Discount 7,513.15 To record annual payment 12/31/20x3 Interest Expense 8,264.46 Bond Discount 8,264.46 To record annual payment 12/31/20x4 Interest Expense 9,090.91 Bond Discount 9,090.91
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Unformatted text preview: To record annual payment 12/31/20x4 Bond Payable 100,000.00 Cash 100,000.00 To record maturity and payoff of bond Clarence Co. Bond Payable Bond Discount 100,000.00 12/31/20x1 12/31/20x1 24,868.52 12/31/20x4 100,000.00 7,513.15 12/31/20x2 17,355.37 8,264.46 12/31/20x3 9,090.91 9,090.91 12/31/20x4 Clarence Co. Bond Payable Bond Discount 100,000.00 12/31/20x1 12/31/20x1 24,868.52 12/31/20x4 100,000.00 7,513.15 12/31/20x2 17,355.37 8,264.46 12/31/20x3 9,090.91 9,090.91 12/31/20x4 12/31/x1 12/31/x2 12/31/x3 12/31/x4 Balance Sheet Liabilities Current Liabilities Bond Payable 100,000 Less: Bond Discount (9,091) Net Bonds Payable 90,909 0 Total Current Liabilities Long-Term Debt Bonds Payable 100,000 100,000 Less: Bond Discount 24,869 17,355 Net Bonds Payable 75,131 82,645 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_BondsZero_Coupon - To record annual payment...

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