C-11_Bonds_Payable_Summary

C-11_Bonds_Payable_Summary - st of 2000 and will mature on...

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ACCT 100 Chapter 11 Bonds Payable Summary and Examples Bond Transactions Issued at Par (Coupon Rate = Market Rate) Issued at Discount (Coupon Rate < Mkt. Rate) Issued at Premium (Coupon Rate > Mkt. Rate) Bond Issuance Dr-Cash $(Face Value) Cr-Bonds Payable $(Face Value) Dr-Cash $(<Face Value) Dr-Discount on B/P $(Plug) Cr-Bonds Payable $(Face Value) Dr-Cash $(>Face Value) Dr- Prem on B/P $(Plug) Cr-Bonds Payable $(Face Value) Interest Expense/ Payment Dr-Int. Exp $(=cash paid) Cr- Cash $(1/2 C.R.*F.V.) Dr-Int. Exp $(=1/2M.R.*Carrying Val of B/P) Cr- Discount on B/P $(Plug) Cr- Cash $(1/2 C.R.*F.V.) Dr-Int. Exp $(=1/2M.R.*C. Val of B/P) Dr-Prem on B/P (Plug) Cr- Cash $(1/2 C.R.*F.V.) Bond Retirement Dr-Bonds Payable $F.V. Cr-Cash $F.V. Dr-Bonds Payable $F.V. Cr-Cash $F.V. Dr-Bonds Payable $F.V. Cr-Cash $F.V. Issued at Par: Bonds with a $100k face value and 12% coupon rate are issued on July 1
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Unformatted text preview: st of 2000 and will mature on July 1 st five years later. Interest payments are made semiannually (Dec 31 st and July 1 st ) and the current market yield is also 12%. Issued at a Discount: Bonds with a $100k face value and 12% coupon rate are issued on July 1 st of 2000 and will mature on July 1 st five years later. Interest payments are made semiannually and the current market yield is also 14%. Present Value Factor of Lump Sum 0.50835; annuity factor 7.36. Issued at a Premium: Bonds with a $200k face value and 12% coupon rate are issued on July 1 st of 2000 and will mature on July 1 st five years later. Interest payments are made semiannually and the current market yield is also 10%. Present Value Factor of Lump Sum = 0.613; Annuity Factor 7.721...
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C-11_Bonds_Payable_Summary - st of 2000 and will mature on...

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