Recap slides - Recap(FinancialLiabilities)...

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Recap (Financial Liabilities) Recap (Financial Liabilities) Hye Sun Chang ACCY 303
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Review-Bonds Payable (Session 10) Review-Bonds Payable (Session 10) Date Interest Payment Interest Expense Amortization of Bond Discount Carrying Balance 1/1/08 96,304 12/31/08 10,000 10,593 593 96,897 12/31/09 10,000 10,659 659 97,556 12/31/10 10,000 10,731 731 98,287 12/31/11 10,000 10,812 812 99,099 12/31/12 10,000 10,901 901 100,000 1. Discount Bonds Total Interest Expenses?  = Total Interest Payment + Discount=50,000+3,696=53,696 Discount=100,000- 96,304=3,696
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Review-Bonds Payable (Session 10) Review-Bonds Payable (Session 10) 1. Premium Bonds Total Interest Expenses?  = Total Interest Payment – Premium=50,000- 3,890=46,110 Premium=103,890-100,000=3,890 Date Interest Payment Interest Expense Amortization of Bond Discount Carrying Balance 1/1/08 103890 12/31/08 10000 9350 650 103240 12/31/09 10000 9292 708 102532 12/31/10 10000 9228 772 101760 12/31/11 10000 9158 842 100918 12/31/12 10000 9083 918 100000
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Review-Bonds Payable (Session 10) Review-Bonds Payable (Session 10) To record the bond issuance,  On Jan 1, 2008          Dr. Cash           96,304                                   Dr. Discount       3,696                                                  Cr. Bonds Payable        100,000 To record interest expenses,  On Dec 31, 2008       Dr. Interest expense  10,593                                                  Cr. Cash                         10,000                                                  Cr. Discount                       593
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Recap slides - Recap(FinancialLiabilities)...

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