Bond issue price |
$ 2,52,000.00 |
Face value |
$ 2,40,000.00 |
Premium on bond |
$ 12,000.00 |
Number of Interest payments (10 years x 2 ) |
20 |
Premium to be amortized per payment |
$ 600.00 |
Interest on bond |
$ 10,800.00 |
Requirement 1
Transaction |
Description |
Debit |
Credit |
jan 1 2018. |
Cash |
$ 2,52,000 |
|
Premium on bonds payable |
$ 12,000 |
||
Bonds payable |
$ 2,40,000 |
||
(Issue of bonds ) |
Requirement 2 and 3
Transaction |
Description |
Debit |
Credit |
30-Jun-18 |
Bond interest expense |
$ 10,200 |
|
Premium on bonds payable |
$ 600 |
||
Cash |
$ 10,800 |
||
(Interest on bond paid and Discount amortized) |
|||
31-Dec-18 |
Bond interest expense |
$ 10,200 |
|
Premium on bonds payable |
$ 600 |
||
Cash |
$ 10,800 |
||
(Interest on bond paid and Discount amortized) |
Requirement 4
Transaction |
Description |
Debit |
Credit |
31-Dec-2028 |
Bonds payable |
$ 2,40,000 |
|
Cash |
$ 2,40,000 |
||
(Repayment of bond at maturity) |
31 the nterest payment and amortiration of bond nterest payment and amorlzation of bond
Complete the amortization table for discount bond and premium bond. Discount bond 007 Date Interest payment Interest Expense Discount Amortization Carrying Value 1/1/20 02082.00 6/30/20 6630.00 6509.00 -509.00 93491.00 12/31/20 0000100 6544.00 044.00 94036.00 6/30/21 60110.00 19/31/21 HODOIDO 6/30/22 6000.00 12/01/22 G000.00 6/30/23 con0.00 12/31/23 HONOOD 6/30/24 6000.00 12/31/24 6000.00 Premium bond 596 Date Interest payment Interest Expense Premlum Amortization Carrying Value 1/1/20 107720.00 6/30/20 5000.00 5386.00 614.00 107106.00 12/31/20 6000.00 5355.00 106461.00 6/30/21 6000100) 12/31/21 6000.00 6/30/22 6000.00 12/31/22...
nterest for the initial 4-year term of a $105 000 mortgage is 4.39% compounded semi-annually. The mortgage is to be repaid by equal weekly payments over 20 years. The mortgage contract permits lump-sum payments at each anniversary date up to 10% of the original principal. (a) What is the balance at the end of the 4-year term if a lump-sum payment of $7000 is made at the end of the third year? no change in the interest rate? is made?...
Consider a $10k government bond due after 10 years. The bond calls for a payment of $500/year at the end of each of the next 10 years and a $10k payment at the end of the 10 years. a) What interest rate does the bond pay? b) 5 years go by and the bond is still trading at $10k. But there has been 5 x $500 = $2,500 in interest payments made. What is the interest rate now? c) At...
You have decided to buy a perpetual bond. The bond makes one payment at the end of every year forever and has an interest rate of 5 $1,000, what is the payment every year? The payment at the end of each year is $ (Round to the nearest dollar.)
You have decided to buy a perpetual bond. The bond makes one payment at the end of every year forever and has an interest rate of 5 $1,000, what is the payment every year? The payment at the end of each year is $ . (Round to the nearest dollar.)
Bond questions 52018 PART-1-Please SELECT from the choices presented bonds payable callable bond convertible bond Annuities Streams of level (ie, the same amount each pariod) payments occurring on regular 1. intervals An obligation dvded into transtferable units requiring the issuer to make periodic interest payments and an eventual repayment of the face amount, 2. A bond that provides the issuer an option to reacquire the bends before scheduled 3 maturity at a preset price A bond that may be converted...
Date Account Debit Credit Year 1 July 1 Oct. 1 Dec. 31-Note Dec. 31-Bond Year 2 June 30 Sept. 30 Dec. 31-Note Dec. 31-Bond Year 3 June 30 Sept. 30 2. Indicate the amount of the interest expense in (a) Year 1 and (b) Year 2. a. Year 1 $ b. Year 2 $ 3. Determine the carrying amount of the bonds as of December 31, Year 2. $ Entries for Bonds Payable and Installment Note Transactions The following transactions...
A bond issued on June 1, 2016, has interest payment dates of April 1 and October 1. The journal entry to record bond interest expense at December 31, 2016, is for a period of: a.3 months b.6 months c.5 months d.2 months g.4 months
True or False? Bond interest expense is the interest cash payment minus the amount of bond premium amortization.
The current yield on a bond is measured by ________. the annual interest payment divided by the current price the annual interest payment divided by the par value the annual interest payment divided by the maturity value the annual interest payment divided by the yield to maturity