Homework #2

Homework #2 - Sanford Co Bond Calculations For Year Ended 1...

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Page 1 Sanford Co. Bond Calculations For Year Ended December 31, 20011 Face Amount of Bonds $500,000 Bond Dated Date 3/1/2010 Bond Maturity Date 9/1/2013 Term in years 3.5 Coupon rate 10% Bond Yield 12% Bond Value $(472,088) Schedule of Bond Amortization Discount Carrying Date Cash Interest Expense Amortization Value 3/1/2010 $472,088 9/1/2010 25,000 28,325 3,325 475,413 3/1/2011 25,000 28,525 3,525 478,938 9/1/2011 25,000 28,736 3,736 482,674 3/1/2012 25,000 28,960 3,960 486,635 9/1/2012 25,000 29,198 4,198 490,833 3/1/2013 25,000 29,450 4,450 495,283 9/1/2013 25,000 29,717 4,717 500,000
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Page 2 Sanford Co. Journal Entries Through December 31, 2011 Journal Entries Date Accounts Debit Credit 3/1/2010 Cash 472, 088 Discount on Bonds Payable 27,912 Bonds Payable 500,000 9/1/2010 Interest Expense 28,325 Discount on Bonds Payagle 3,325 Cash 25,000 12/31/2010 Interest Expense 19,017 Discount on Bonds Payable (3525 * 4/6) 2,350 Interest Payable (25000 * 4/6) 16,667 3/1/2011 Interest Expense 9,508
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This note was uploaded on 03/04/2011 for the course BUS 101 taught by Professor Surie during the Spring '11 term at Nassau CC.

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Homework #2 - Sanford Co Bond Calculations For Year Ended 1...

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