P14-2 - 14-2 a) Present value of the principal Present...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: 14-2 a) Present value of the principal Present value of the interest Present value(selling price of bonds) Dr. Cash Unamortized Bond Issue Costs Bonds Payable Premium Bonds Payable b) Date 1/1/2009 1/1/2010 1/1/2011 1/1/2012 1/1/2013 c) Carrying amount as of 1/1/12 Less: Amortization of bond premium Carrying amount as of 7/1/12 Reacquisition price Carrying amount as of 7/1/12 Loss Entry Accrued Interest Dr. Interest Expense Premium on Bonds Payable Cash Entry for Reacquisition Dr. Bonds Payable Premium on Bonds Payable Loss on Redemption of Bonds Unamortized Bond Issue Costs Cash $771,080 $1,290,360 $2,061,440 Cr. $2,011,440 $50,000 $2,000,000 $61,440 Cash Paid $210,000 $210,000 $210,000 $210,000 $2,048,676 $2,566 $2,046,110 $1,065,000 $1,023,055 $41,945 Interest Expense $(206,144) $(205,758) $(205,334) $(204,868) Cr. $51,217 $1,283 $52,500 Cr. $1,000,000 $23,055 $58,195 $16,250 $1,065,000 Premium Amortization $3,856 $4,242 $4,666 $5,132 Carrying amount of Bonds $2,061,440 $2,057,584 $2,053,342 $2,048,676 $2,043,544 ...
View Full Document

This note was uploaded on 05/01/2011 for the course FINANCE 516 taught by Professor Anderson during the Spring '11 term at Keller Graduate School of Management.

Page1 / 2

P14-2 - 14-2 a) Present value of the principal Present...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online