Gonzalez, John Williever A. - Bonds Payable-Between Interest Dates and Serial
Gonzalez, John Williever A. - Bonds Payable-Between Interest Dates and Serial
Gonzalez, John Williever A. - Bonds Payable-Between Interest Dates and Serial
A.
1. Present Value of the Bonds Payable:
₱1,000,000
Date Principal PaymeInterest PaymenTotal Paymen
Year 1 ₱250,000 ₱50,000 ₱300,000
Year 2 ₱250,000 ₱37,500 ₱287,500
Year 3 ₱250,000 ₱25,000 ₱275,000
Year 4 ₱250,000 ₱12,500 ₱262,500
Total Present Value
Face Amount
Discount on Bonds Payable
2. Amortization Table
5% 6%
Date (Yr.) Nominal Rate Effective Rate Amortization
1/1/2023
1 ₱50,000 ₱58,661 ₱8,661
2 ₱37,500 - -
3 ₱25,000 - -
4 ₱12,500 - -
₱125,000
3. Related Journal Entries:
Date Account Particulars Debit
1/1/2023 Cash ₱977,688
Discounts on Bonds Payable ₱22,312
Bonds Payable
To record issuance of bonds.
### Interest Expense ₱250,000
Bonds Payable ₱58,661
Discount on Bonds Payable
Cash
To record payment of principal plus interest and amortiza
B.
1. Face Amount
Multiply by Nominal Rate
Annual Interest Received
Multiply by Time Period (6/12)
Accrued Interest (July 1 - Dec. 31)
Amount Consideration
Less: Accrued Interest
Carrying Amount, July 1, 2021
on Table
Credit
₱1,000,000
₱8,661
₱300,000
of principal plus interest and amortization of discount.
₱100,000
12%
₱12,000
0.50
₱6,000
₱100,000
₱6,000
₱94,000
Credit
₱100,000
₱6,000
ual interest payment.
₱106,000
miannual interest paid and bond repayment.