Homework Answers
| Partial amortization Table for conventional 4% Par Value Term Bonds | |||||
| Date | Cash Paid 4% | Interest Exp. 4% | Amortized Discount | Unamortized Discount | PV of Bonds |
| 1/1/20 | 0 | $ 200,000,000.00 | |||
| 12/31/20 | $ 8,000,000.00 | $ 8,000,000.00 | $ - | $ - | $ 200,000,000.00 |
| 12/31/21 | $ 8,000,000.00 | $ 8,000,000.00 | $ - | $ - | $ 200,000,000.00 |
| 12/31/22 | $ 8,000,000.00 | $ 8,000,000.00 | $ - | $ - | $ 200,000,000.00 |
| 12/31/23 | $ 8,000,000.00 | $ 8,000,000.00 | $ - | $ - | $ 200,000,000.00 |
| 12/31/24 | $ 8,000,000.00 | $ 8,000,000.00 | $ - | $ - | $ 200,000,000.00 |
| 12/31/25 | $ 8,000,000.00 | $ 8,000,000.00 | $ - | $ - | $ 200,000,000.00 |
| 12/31/26 | $ 8,000,000.00 | $ 8,000,000.00 | $ - | $ - | $ 200,000,000.00 |
| 12/31/27 | $ 8,000,000.00 | $ 8,000,000.00 | $ - | $ - | $ 200,000,000.00 |
| 12/31/28 | $ 8,000,000.00 | $ 8,000,000.00 | $ - | $ - | $ 200,000,000.00 |
| 12/31/29 | $ 8,000,000.00 | $ 8,000,000.00 | $ - | $ - | $ 200,000,000.00 |
| Partial amortization Table for zero % term bonds effective rate 6% Interest | |||||
| Date | Cash Paid 0% | Interest Exp. 6% | Amortized Discount | Unamortized Discount | PV of Bonds |
| 1/1/20 | $ 158,170,000.00 | $ 200,000,000.00 | |||
| 12/31/20 | $ - | $ 12,000,000.00 | $ 12,000,000.00 | $ 146,170,000.00 | $ 212,000,000.00 |
| 12/31/21 | $ - | $ 12,720,000.00 | $ 12,720,000.00 | $ 133,450,000.00 | $ 224,720,000.00 |
| 12/31/22 | $ - | $ 13,483,200.00 | $ 13,483,200.00 | $ 119,966,800.00 | $ 238,203,200.00 |
| 12/31/23 | $ - | $ 14,292,192.00 | $ 14,292,192.00 | $ 105,674,608.00 | $ 252,495,392.00 |
| 12/31/24 | $ - | $ 15,149,723.52 | $ 15,149,723.52 | $ 90,524,884.48 | $ 267,645,115.52 |
| 12/31/25 | $ - | $ 16,058,706.93 | $ 16,058,706.93 | $ 74,466,177.55 | $ 283,703,822.45 |
| 12/31/26 | $ - | $ 17,022,229.35 | $ 17,022,229.35 | $ 57,443,948.20 | $ 300,726,051.80 |
| 12/31/27 | $ - | $ 18,043,563.11 | $ 18,043,563.11 | $ 39,400,385.09 | $ 318,769,614.91 |
| 12/31/28 | $ - | $ 19,126,176.89 | $ 19,126,176.89 | $ 20,274,208.20 | $ 337,895,791.80 |
| 12/31/29 | $ - | $ 20,273,747.51 | $ 20,274,208.20 | $ 0.00 | $ 358,170,000.00 |
| Rounded 460.69 |
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Partial Amortization Table for Conventional 4% Par Value Term Bonds Int. Exp Cash Paid-4% Amortized Discount...
Complete the amortization table for discount bond and premium bond. Discount bond 007 Date Interest payment...
Complete the amortization table for discount bond and premium
bond.
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Using a Discount Amortization Table (Straight Line) Panamint Candy Company prepared the following amortization table for $300,000 of 5-year, 9% bonds issued and sold by Panamint on january 1, 2021, for $285,000: Period Cash Payment (Credit) Interest Expense (Debit) Discount on Bonds Payable (Credit) Discount on Bonds Payable Balance Carrying Value At issue $15,000 $285,000 06/30/21 $13,500 $15,000 $1,500 13,500 286,500 12/31/21 13,500 15,000 1,500 12,000 288,000 06/30/22 13,500 15,000 1,500 10,500 289,500 12/31/22 13,500 15,000 1,500 9,000 291,000 06/30/23...
Please help with the journal entries for both the premium amortized and discount amortized. Thanks in...
Please help with the journal entries for
both the premium amortized and discount amortized. Thanks in
advance!
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Amortization of Discount Stacy Company issued five-year, 10% bonds with a face value of $10,000 on...
Amortization of Discount
Stacy Company issued five-year, 10% bonds with a face value of
$10,000 on January 1, 2017. Interest is paid annually on December
31. The market rate of interest on this date is 12%, and Stacy
Company receives proceeds of $9,279 on the bond issuance.
Required:
Refer to the tables above for present value factors.
1. Prepare a five-year table to amortize the
discount using the effective interest method.
Note: Round the 12/31/18 interest expense and discount amortized...
Exercise 9-74 Using a Premium Amortization Table (Straight Line) For Dingle Corporation, the following amortization table...
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Exercise 14-4 Straight-Line: Amortization of bond discount Tano Company issues bonds with a par value of $180,000 on January 1, 2019. The bonds' annual contract rate is 8%, and interest is paid semiannually on June 30 and December 31. The bonds mature in the years. The annual market rate at the date of issuance is 10%, and the bonds are sold for $170,862. 1. What is the amount of the discount on these bonds at issuance? 2. How much total...
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Windsor Co. sells $451,000 of 8% bonds on March 1, 2020. The bonds pay interest on...
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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...
Please help with the journal entries for
both the premium amortized and discount amortized. Thanks in
advance!
Flounder Co. sells $423,000 of 12% bonds on June 1, 2020. The bonds pay interest on December 1 and June 1. The due date of the bonds is June 1, 2024. The bonds yield 10%. On October 1, 2021, Flounder buys back $131,130 worth of bonds for $136,130 (includes accrued interest). Give entries through December 1, 2022. Prepare a bond amortization schedule using...
Amortization of Discount
Stacy Company issued five-year, 10% bonds with a face value of
$10,000 on January 1, 2017. Interest is paid annually on December
31. The market rate of interest on this date is 12%, and Stacy
Company receives proceeds of $9,279 on the bond issuance.
Required:
Refer to the tables above for present value factors.
1. Prepare a five-year table to amortize the
discount using the effective interest method.
Note: Round the 12/31/18 interest expense and discount amortized...
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