Brief Ex 14-3

PV ?
Interest rate 5% semi-annually
Number of periods 20
Payment (27,500) semi-annually
Future value (500,000)
Type 0 0: at the end 1: at the beginning

$531,156

Premium (market rate 10% < stated rate 11%)

Brief Ex 14-4
Dr Cr
01/01/2017
Cash 300,000
Note Payable 300,000

12/31/2017
Interest Expense 24,000
Cash 24,000
Brief Ex 14-5
PV ?
Interest rate 3% semi
Number of periods 10
Payment (8,000) semi
Future value (200,000)
Type 0 end

$217,060

Dr Cr
05/01/2017
Cash 217,060
Bonds Payable 217,060 carrying amount

11/01/2017
Interest Expense 6,512
Bonds Payable 1,488
Cash 8,000

05/01/2018
Interest Expense 6,467 215,572
Bonds Payable 1,533
Cash 8,000
new carrying amount
Brief Ex 14-12
Dr Cr
01/01/2017
Cash 294,000
Bonds Payable 294,000

07/01/2017
Interets Expense 15,600
Bonds Payable 600
Cash 15,000 Cash = Interest Payments
Ex 14-12

Date Interest Payment Interest Expense Bond Payable Carrying Value

01/01/2017 Cr Dr Cr 800,000
07/01/2017 40,000 90,000 50,000 850,000
12/31/2017 40,000 90,000 50,000 900,000
07/01/2018 40,000 90,000 50,000 950,000
12/31/2018 40,000 90,000 50,000 1,000,000

Dr Cr
01/01/2017
Cash 800,000
Bonds Payable 800,000

07/01/2017
Interest Expense 90,000
Bonds Payable 50,000
Cash 40,000

12/31/2017
Interest Expense 90,000
Bonds Payable 50,000
Interest Payable 40,000

01/01/2018
Interest Payable 40,000
Cash 40,000
Ex 14-13

Present value 2,783,713

Interest rate ?
Number of periods 5
Payment (300,000)
Future value (3,000,000)
Type 0

12%
Cr Dr Cr
Date Interest Payment Interest Expense Bond Payable Carrying Value
01/01/2017 12% 2,783,713
12/31/2017 300,000 334,045.68 34,046 2,817,759
12/31/2018 300,000 338,131 38,131 2,855,890
12/31/2019 300,000 342,707 42,707 2,898,597
13/31/2020 300,000 347,832 47,832 2,946,428
12/31/2021 300,000 353,572 53,572 3,000,000

Dr Cr
01/01/2017
Cash 2,783,713
Bonds Payable 2,783,713

12/31/2017
Interest Expense 334,046
Bonds Payable 34,046
Interest Payable 300,000

01/01/2018
Interest Payable 300,000
Cash 300,000
Ex 14-11
10%
Date Interest Payment Interest Expense Bond Payable Carrying Value
01/01/2017 Cr Dr Dr 860,652
12/31/2017 96,000 86,065 9,935 850,717
12/31/2018 96,000 85,072 10,928 839,789
12/31/2019 96,000 83,979 12,021 827,768
12/31/2020 96,000 82,777 13,223 814,545
12/31/2021 96,000 81,454 14,546 799,999

Dr Cr
01/01/2017
Cash 860,652
Bonds Payable 860,652

12/31/2017
Interest Expense 86,065
Bonds Payable 9,935
Interest Payable 96,000

01/01/2018
Interest Payable 96,000
Cash 96,000

12/31/2019
Interest Expense 85,072
Bonds Payable 10,928
Interest Payable 96,000
Brief Ex 14-19
Dr Cr
Bonds Payable 806,500
Cash 776,000
Gain on Redemption of Bonds 30,500

Bonds Payable 800,000

Unamortized Premium 6,500
Carrying value 806,500
Ex 14-18
Dr Cr
06/30/2010
Cash 784,000
Bonds Payable 784,000

Face Value 800,000

Bonds Payable 784,000
Discount 16,000
Amortization Period 20 years
Amortization Amount 800 /year
7 years (2017-2010)
5,600
Carrying Value @ June 30, 2017:
Original Amount 784,000
Amortization 5,600
CV @ June 30, 2017 789,600

06/30/2017
Bonds Payable 789,600
Loss on Redemption of Bonds 42,400
Cash 832,000

06/30/2017
Cash 1,020,000
Bonds Payable 1,020,000

12/31/2017
Interest Expense 49,500
Bonds Payable 500
Cash 50,000

Premium (1,020,000=1,000,000)= 20,000

20 years
1,000 /year
semi annually 500