|
|||||||
Principal | $2,000,000.00 | ||||||
Coupon rate | 5.00% | (10/2) | |||||
Period | 20 | ||||||
Yeild Rate | 4.00% | (8/2) | |||||
Yearly Interest | $100,000.00 | (2000000*12%) | |||||
Payment and Discounting Chart is as follows:- | |||||||
1 | 0.96154 | $100,000.00 | $96,154.00 | ||||
2 | 0.92456 | $100,000.00 | $92,456.00 | ||||
3 | 0.88900 | $100,000.00 | $88,900.00 | ||||
4 | 0.85480 | $100,000.00 | $85,480.00 | ||||
5 | 0.82193 | $100,000.00 | $82,193.00 | ||||
6 | 0.79031 | $100,000.00 | $79,031.00 | ||||
7 | 0.75992 | $100,000.00 | $75,992.00 | ||||
8 | 0.73069 | $100,000.00 | $73,069.00 | ||||
9 | 0.70259 | $100,000.00 | $70,259.00 | ||||
10 | 0.67556 | $100,000.00 | $67,556.00 | ||||
11 | 0.64958 | $100,000.00 | $64,958.00 | ||||
12 | 0.62460 | $100,000.00 | $62,460.00 | ||||
13 | 0.60057 | $100,000.00 | $60,057.00 | ||||
14 | 0.57748 | $100,000.00 | $57,748.00 | ||||
15 | 0.55526 | $100,000.00 | $55,526.00 | ||||
16 | 0.53391 | $100,000.00 | $53,391.00 | ||||
17 | 0.51337 | $100,000.00 | $51,337.00 | ||||
18 | 0.49363 | $100,000.00 | $49,363.00 | ||||
19 | 0.47464 | $100,000.00 | $47,464.00 | ||||
20 | 0.45639 | $2,100,000.00 | $958,419.00 | ||||
TOTAL | $2,271,813.00 | ||||||
a.) | |||||||
Date | Account Titles & Explanation | Debit | Credit | ||||
1-Jul-20 | Cash | $2,271,813.00 | |||||
Premium on Bonds Ammortization | $271,813.00 | ||||||
Bonds Payable | $2,000,000.00 | ||||||
(Cash Received for Bonds) | |||||||
b.) | |||||||
Bond Ammortization Schedule would be | |||||||
A | B | C | D | E | F | G | |
Interest Pmt. | Interest | Premium | Credit Bal. | Credit Bal. | Carrying Amount | ||
Cash Paid | Expense | Ammortization | in the account | in the account | of Bonds | ||
4% * Face | 5 % * G | C minus B | Bond Premium | Bonds Payable | F Minus E | ||
1-Jul-20 | $0.00 | $0.00 | $0.00 | -$271,813.00 | $2,000,000.00 | $2,271,813.00 | |
1-Jan-21 | $100,000.00 | $90,872.52 | -$9,127.48 | -$262,685.52 | $2,000,000.00 | $2,262,685.52 | |
1-Jul-21 | $100,000.00 | $90,507.42 | -$9,492.58 | -$253,192.94 | $2,000,000.00 | $2,253,192.94 | |
1-Jan-22 | $100,000.00 | $90,127.72 | -$9,872.28 | -$243,320.66 | $2,000,000.00 | $2,243,320.66 | |
1-Jul-22 | $100,000.00 | $89,732.83 | -$10,267.17 | -$233,053.48 | $2,000,000.00 | $2,233,053.48 | |
1-Jan-23 | $100,000.00 | $89,322.14 | -$10,677.86 | -$222,375.62 | $2,000,000.00 | $2,222,375.62 | |
1-Jul-23 | $100,000.00 | $88,895.02 | -$11,104.98 | -$211,270.65 | $2,000,000.00 | $2,211,270.65 | |
1-Jan-24 | $100,000.00 | $88,450.83 | -$11,549.17 | -$199,721.48 | $2,000,000.00 | $2,199,721.48 | |
1-Jul-24 | $100,000.00 | $87,988.86 | -$12,011.14 | -$187,710.33 | $2,000,000.00 | $2,187,710.33 | |
1-Jan-25 | $100,000.00 | $87,508.41 | -$12,491.59 | -$175,218.75 | $2,000,000.00 | $2,175,218.75 | |
1-Jul-25 | $100,000.00 | $87,008.75 | -$12,991.25 | -$162,227.50 | $2,000,000.00 | $2,162,227.50 | |
1-Jan-26 | $100,000.00 | $86,489.10 | -$13,510.90 | -$148,716.60 | $2,000,000.00 | $2,148,716.60 | |
1-Jul-26 | $100,000.00 | $85,948.66 | -$14,051.34 | -$134,665.26 | $2,000,000.00 | $2,134,665.26 | |
1-Jan-27 | $100,000.00 | $85,386.61 | -$14,613.39 | -$120,051.87 | $2,000,000.00 | $2,120,051.87 | |
1-Jul-27 | $100,000.00 | $84,802.07 | -$15,197.93 | -$104,853.95 | $2,000,000.00 | $2,104,853.95 | |
1-Jan-28 | $100,000.00 | $84,194.16 | -$15,805.84 | -$89,048.10 | $2,000,000.00 | $2,089,048.10 | |
1-Jul-28 | $100,000.00 | $83,561.92 | -$16,438.08 | -$72,610.03 | $2,000,000.00 | $2,072,610.03 | |
1-Jan-29 | $100,000.00 | $82,904.40 | -$17,095.60 | -$55,514.43 | $2,000,000.00 | $2,055,514.43 | |
1-Jul-29 | $100,000.00 | $82,220.58 | -$17,779.42 | -$37,735.01 | $2,000,000.00 | $2,037,735.01 | |
1-Jan-30 | $100,000.00 | $81,509.40 | -$18,490.60 | -$19,244.41 | $2,000,000.00 | $2,019,244.41 | |
1-Jul-30 | $100,000.00 | $80,755.59 | -$19,244.41 | $0.00 | $2,000,000.00 | $2,000,000.00 | |
I have prepared for the full bond period, You can type accordingly as per the need. | |||||||
c.) | |||||||
31-Dec-20 | Interest expense on Bonds | $90,872.52 | |||||
Premium on Bond Ammortization | $9,127.48 | ||||||
Interest Payable | $100,000.00 | ||||||
(Interest Accrued and Premium on | |||||||
Bond Ammortized) | |||||||
d.) | |||||||
1-Jan-21 | Interest Payable | $100,000.00 | |||||
Cash/Bank | $100,000.00 | ||||||
(interest paid by bank) | |||||||
e.) | |||||||
1-Jul-21 | Interest expense on Bonds | $90,507.42 | |||||
Premium on Bond Ammortization | $9,492.58 | ||||||
Cash/Bank | $100,000.00 | ||||||
(Interest Accrued and Premium on | |||||||
Bond Ammortized) | |||||||
f.) | |||||||
31-Dec-21 | Interest expense on Bonds | $90,127.72 | |||||
Premium on Bond Ammortization | $9,872.28 | ||||||
Interest Payable | $100,000.00 | ||||||
(Interest Accrued and Premium on | |||||||
Bond Ammortized) |
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