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    Gonzalez, John Williever A. - Bonds Payable-Between Interest Dates and Serial

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    John Williever Gonzalez
    The document contains information about the issuance of bonds payable, including the present value calculation of the bonds using discount rates and payment schedules. It provides an amortization table showing the annual discount amortization. It also includes the related journal entries to record the bond issuance, interest payments, and repayment of principal.

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    Gonzalez, John Williever A. - Bonds Payable-Between Interest Dates and Serial

    Uploaded by

    John Williever Gonzalez
    10 views4 pages
    The document contains information about the issuance of bonds payable, including the present value calculation of the bonds using discount rates and payment schedules. It provides an amortization table showing the annual discount amortization. It also includes the related journal entries to record the bond issuance, interest payments, and repayment of principal.

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    The document contains information about the issuance of bonds payable, including the present value calculation of the bonds using discount rates and payment schedules. It provides an amortization table showing the annual discount amortization. It also includes the related journal entries to record the bond issuance, interest payments, and repayment of principal.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Download as xlsx, pdf, or txt
    10 views4 pages

    Gonzalez, John Williever A. - Bonds Payable-Between Interest Dates and Serial

    Uploaded by

    John Williever Gonzalez
    The document contains information about the issuance of bonds payable, including the present value calculation of the bonds using discount rates and payment schedules. It provides an amortization table showing the annual discount amortization. It also includes the related journal entries to record the bond issuance, interest payments, and repayment of principal.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Download as xlsx, pdf, or txt
    of 4

    Answers:

    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

    Related Journal Entries:


    Date Account Particulars Debit
    ### Cash ₱100,000
    Bonds Payable
    To record issuance of bonds.
    6/30/2021 Interest Expense ₱6,000
    Cash
    To record semiannual interest payment.
    ### Interest Expense ₱6,000
    Bonds Payable ₱100,000
    Cash
    To record final semiannual interest paid and bond repaym
    PV Factor Present Value
    0.9434 ₱283,020
    0.8900 ₱255,875
    0.8396 ₱230,890
    0.7920 ₱207,903
    ₱977,688
    ₱1,000,000
    ₱22,312

    on Table

    Principal PaymeCarrying Amount


    ₱977,687.63
    ₱250,000 ₱1,236,348.88
    ₱250,000 -
    ₱250,000 -
    ₱250,000 -
    ₱1,000,000

    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.

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