Amortization table | ||||
Col I | Col II | Col III | Col IV | |
Date | Interest Payment($30,000,000*5%) | Interest expenses(Col IV*4.5%) | Premium amorrtization(Col I -Col II) | Bond carrying amount |
Jul 31 20Y1 | 3,19,51,110 | |||
Dec 31 20Y1 | 15,00,000 | 14,37,800 | 62,200 | 3,18,88,910 |
Jun 30 20Y2 | 15,00,000 | 14,35,001 | 64,999 | 3,18,23,911 |
Date | Accounts and explanation | Debit(in $) | Credit(in $) | |
Jul 31 20Y1 | Cash | 3,19,51,110 | ||
Bonds Payable | 3,00,00,000 | |||
Premium on Bonds Payable | 19,51,110 | |||
(To Bond issued at premium) | ||||
Dec 31 20Y1 | Interest Expenses | 14,37,800 | ||
Premium on bonds payable | 62,200 | |||
Cash | 15,00,000 | |||
Jun 30 20Y2 | Interest Expenses | 14,35,001 | ||
Premium on bonds payable | 64,999 | |||
Cash | 15,00,000 | |||
Total Interest expenses for 20Y1 =$1,437,800 | ||||
Bond premium, entries for bonds payable transactions, interest method of amortizing bond premium Instructions Chart of...
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