Matthew_McCoy_Problem 14-3A

Matthew_McCoy_Problem 14-3A - 4,659 Premium on Bonds...

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Matthew McCoy Problem 14-3A Interest Computations Amount repaid to bondholders    Ten interest payments of $5,175 51,750    Par value at maturity 230,000    Total repaid to bondholders 281,750 Less amount borrowed from bondholders (235,160) Total bond interest expense 46,590 Bond interest expense = 46,590 (per interest period) Number of interest periods 10 Semiannual Unamortized Period- End Premium 0 1/1/2009 5,160 1 6/30/2009 4,644 2 12/31/2009 4,128 3 6/30/2010 3,612 4 12/31/2010 3,096 5 6/30/2011 2,580 6 12/31/2011 2,064 7 6/30/2012 1,548 8 12/31/2012 1,032 9 6/30/2013 516 10 12/31/2013 0 2009 Jun. 30 Bond Interest Expense
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Unformatted text preview: 4,659 Premium on Bonds Payable 516 Cash To record semiannual interest and premium amortization (straight-line method). Dec. 31 Bond Interest Expense 4,659 Premium on Bonds Payable 516 Cash To record semiannual interest and premium amortization (straight-line method). Total bond interest expense = = 4,659 Carrying Value 235,160 234,644 234,128 233,612 233,096 232,580 232,064 231,548 231,032 230,516 230,000 5,175 5,175...
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This note was uploaded on 09/24/2011 for the course ACCT 212 taught by Professor Sheik during the Spring '11 term at Mountain State.

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Matthew_McCoy_Problem 14-3A - 4,659 Premium on Bonds...

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