Financial Accounting, IFRS International Financial Reporting StandardsSection 3 BONDS

Dashboard Technologies issued bonds on January 1, 2020 with a face value of $70, 000, 000 that mature in 5 years. The bonds carry a 5% annual interest rate (Paid semi-annually) and were sold to yield a market rate of 4%. The bonds were issued at a premium for $71, 692, 499.

What are the factors that you need to use to compute the value of the bonds that are issued?. That is, how would you enter the following in a calculator or Excel. You do not need to calculate the present value.

Interest rate: BLANK (percent)

Number of periods: BLANK 

Payments: $ BLANK 

Are the bonds issued at a premium? Yes or no, BLANK

How much would the bonds be issued for $ BLANK?

I want you to assume a present value of $72, 000, 000 to do journal entry. This is to make the journal entry numbers easy with no rounding issues. Complete the journal entry for the issuance of the bonds on January 1, 2020

Debit    BLANK              Amount $ BLANK 

Credit     BLANK            Amount $ BLANK 

Assume a present value of $72, 000, 000 and the other information about the stated interest rate and market rate, provide the journal entry for June 30, 2020. This is to make the journal entry numbers easy with no rounding issues. The first debit entry should be an income statement account

Debit            BLANK                     Amount     BLANK 

Debit           BLANK                      Amount     BLANK 

Credit          BLANK                      Amount      BLANK 

What would be the journal entry for December 31, 2020 after having done the previous journal entry on June 30, 2020

Debit      BLANK                           Amount BLANK 

Debit       BLANK                          Amount BLANK 

Credit     BLANK                           Amount BLANK 

Complete the journal entry to record the repayment of the bonds on December 31, 2024

Debit    BLANK                             Amount BLANK 

Credit    BLANK                            Amount BLANK