Question

i dont know how to find INTER or PREM plz help

File Edit View Insert Format Data Tools Add-ons Help All changes saved in Dri 100% $ % .0 .00 123- Times New... - 12 - B I S A B C D E F G н 202: E-15 REVIEW - BOND AMORTIZATION - PREMIUM ROUND TO WHOLE DOLLARS - NO PENNIES AMORTIZE THE FOLLOWING II On July 1, 20x0, Halo Corporation issued 5 year bonds, paid semi-annually (20 pts)! FACES FACE % 650,000 11% MKT$ MKT % 104 10% | NPYMT INTERPREMT BAL IIA JOURNALIZE THE FOLLOWING: BOND PREMIUM PROCEEDS + 1 BP PREM BLANK 2 BP PREM BLANK - 3 BP PREM BLANK - 4BP

Answer 1

	PYMT	INTER	PREM	BAL.
				675,093
1	35,750	33,755	1,995	673,098
2	35,750	33,655	2,095	671,003
3	35,750	33,550	2,200	668,803
4	35,750	33,440	2,310	666,493
5	35,750	33,325	2,425	664,067
6	35,750	33,203	2,547	661,521
7	35,750	33,076	2,674	658,847
8	35,750	32,942	2,808	656,039
9	35,750	32,802	2,948	653,091
10	35,750	32,658.56	3,091	650,000
PYMT = 650,000 x 11% x 1/2
Interest = 675,093 x 10% x 1/2
Premium = PYMT - Interest
Working
Maturity Value				$650,000
Present value of Bond Face Value			$399,042
650,000 x 0.61391 i.e. (PVF 10, 5%)
Present value of Notes Interest			$276,052	$675,093
35,750 x 7.72173 i.e. (PVFA 10, 5%)
Premium on Bonds Payable				$25,093