Financial Accounting Volume 2 2008 Valix-Peralta
Chapter 2 Problem 2-5
Chapter 2 Problem 2-5
Requirement 1
2008
April 1 Cash 4,850,000
Discount on bonds payable 100,000
Bond issue cost 50,000
Bonds payable 5,000,000
Oct 1 Interest expense 300,000
Cash (5,000,000x12%x6/12) 300,000
Dec 31 Interest expense 150,000
Accrued interest payable (5,000,000x12%x3/12) 150,000
Interest expense 22,500
Discount on bonds payable (100,000/5x9/12) 15,000
Bond issue cost (50,000/5x9/12) 7,500
2009
Jan 1 Accrued interest payable 150,000
Interest expense 150,000
April 1 Interest expense 300,000
Cash 300,000
July 1 Interest expense 15,000
Discount on bonds payable (20,000x6/12) 10,000
Bond issue cost (10,000x6/12) 5,000
Retirement price (2,000,000x99%) 1,980,000
Add: Accrued interest from April to July 1, 2008
(2,000,000x12%x3/12) 60,000
Total payment 2,040,000
Bonds payable retired 2,000,000
Less: Applicable discount (2/5x75,000) 30,000
Applicable issue cost (2/5x37,500) 15,000 45,000
Book value of bonds retired 1,955,000
Less: Retirement price 1,980,000
Loss on early retirement (25,000)
July 1 Bonds payable 2,000,000
Interest expense 60,000
Loss on early retirement of bonds 25,000
Cash 2,040,000
Discount on bonds payable 30,000
Bond issue cost 15,000
Oct 1 Interest expense 180,000
Accrued interest payable (3,000,000x12%x6/12) 180,000
Dec 31 Interest expense 90,000
Accrued interest payable (3,000,000x12%x3/12) 90,000
i 31 Interest expense 9,000
Discount on bonds payable (12,000x6/12) 6,000
Bond issued cost (6,000x6/12) 3,000
Revised annual amortization
Discount (3/5x20,000) 12,000
Issue cost (3/5x10,000) 6,000
Requirement 2
Noncurrent liabilities
Bonds payable 3,000,000
Discount on bonds payable ( 39,000)
Bond issue cost ( 19,500)
Book Value 2,941,500
Pakipost naman po ung financial acctg vol 2 ni Valix. Kailangan ko po talaga
ReplyDeletePls. Maraming salamat po! God Bless po sa inyo. tnx.
but hnde lahat nka post ung vol2 pki post nman pls
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