Question

In: Accounting

Bond Amortization and adjusting entry. Use excel to create an amortization table for 10 years and...

Bond Amortization and adjusting entry. Use excel to create an amortization table for 10 years and show the adjusting entry for the bond payable for the June payment. Show calculations.

Had issued $1,500,000 of 4%, 10-year bond, dated 1/1/18 for $1,383,079 when the market rate was 5%. Interest is paid on June 30 and January 1 using the effective interest rate method. The June payment is included in the Dec. 1 TB.

Trial Balance

December 1, 2021

Description Debit Credit
Bond Payable 1,500,000
Discount on Bond Payable 82,377

Solutions

Expert Solution

ekkarill92 answered 1 year ago
Next > < Previous

Related Solutions

Use Excel to prepare a Bond Interest and Discount Amortization Table using the following information: $50,000,000...
Use Excel to prepare a Bond Interest and Discount Amortization Table using the following information: $50,000,000 face value coupon rate of interest - 6% market rate of interest - 7% term - 10 years payable semi-annually First calculate the proceeds received upon issuance and the amount of the discount
In excel, Produce the amortization schedule for a $800K mortgage at 10 years with a rae...
In excel, Produce the amortization schedule for a $800K mortgage at 10 years with a rae of 3.25 percent / year. Provide a column for labels and the excel functions used.
In Excel, create the amortization table for a 15-year mortgage for $780,000 at 6.6% interest. Individual...
In Excel, create the amortization table for a 15-year mortgage for $780,000 at 6.6% interest. Individual taxpayers may be able to deduct the amount of interest that they paid on a mortgage for a personal residence. If the mortgage was issued on July 1, how much interest will be earned in the first year? How much interest will be earned in the second year?
In Excel, create the amortization table for a 15-year mortgage for $950,000 at 4.2% interest. Individual...
In Excel, create the amortization table for a 15-year mortgage for $950,000 at 4.2% interest. Individual taxpayers may be able to deduct the amount of interest that they paid on a mortgage for a personal residence. If the mortgage was issued on May 1, how much interest will be earned in the first year? How much interest will be earned in the second year? Upload your Excel file below.
Create an amortization table for a corporate bond which has a yield to maturity (YTM) of...
Create an amortization table for a corporate bond which has a yield to maturity (YTM) of 6.55% that will last 20 years and has a coupon rate of 4% If you could use excel and post the formulas that would be great!
Create an amortization table for a corporate bond which has a yield to maturity (YTM) of...
Create an amortization table for a corporate bond which has a yield to maturity (YTM) of 3.66% that will last 30 years and has a coupon rate of 4%. Thank you! I would appreciate the use of excel as well as shown formulas! Thank you!
Excel, create the amortization table for a 15-year mortgage for $950,000 at 4.2% interest. Individual taxpayers...
Excel, create the amortization table for a 15-year mortgage for $950,000 at 4.2% interest. Individual taxpayers may be able to deduct the amount of interest that they paid on a mortgage for a personal residence. If the mortgage was issued on May 1, how much interest will be earned in the first year? How much interest will be earned in the second year? Upload your Excel file below. I dont know how to create an ammortization in excel. It is...
Computing Bond Issue Price and Preparing an Amortization Table in Excel On December 31, 2015, Kaplan,...
Computing Bond Issue Price and Preparing an Amortization Table in Excel On December 31, 2015, Kaplan, Inc., issues $300,000 of 9% bonds that pay interest semiannually and mature in 10 years (December 31, 2025). a. Using the Excel PV worksheet function, compute the issue price assuming that the bonds' market rate is 8% per year compounded semiannually. (Refer to Appendix A for illustration.) Round answer to two decimal places. Issue price $Answer b. Prepare an amortization table in Excel to...
Exercise 1 Construct an amortization table in Excel to answer the following questions. You must use...
Exercise 1 Construct an amortization table in Excel to answer the following questions. You must use the corresponding Excel financial formulas whenever possible. Upon graduation, Federico Hernández, borrows $20,000 to finance a late model used car. The loan is made by a family member who was able to obtain an 8 % annual percent rate (APR). The loan is going to be payback in equal monthly payments over 5 years. a) How much are the monthly payments? b) How many...
Use StatCrunch and/or Excel (or another software of your choosing) to create a table of summary...
Use StatCrunch and/or Excel (or another software of your choosing) to create a table of summary statistics for all Quantitative variables in the Cleaned Student Data Survey Results that you submitted for Course Project 3. The table should include the following summary statistics: n (count) Mean Standard Deviation 5-Number-Summary (Min, First Quartile, Median, Third Quartile, Maximum) Range (= Max - Min) Inter-Quartile Range (IQR = Q3 - Q1) The table should include these summary statistics for the following variables: Age,...
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
Amortization Table-As per Effective Interest method
Date Cash Interest paid($1,500,000*4%*6/12) Interest expenses(Bond carrying amount*2.5%) Discount amortized Unamortized Discount Bond carrying amount
Col I Col II Col III Col IV(Col III - Col II) Col VI
Jan 1/2018 $                              116,921 $                       1,383,079
Jun 30/2018 $                                                                          30,000 $                                                          34,577 $                                            4,577 $                              112,344 $                       1,387,656
Dec 31/2018 $                                                                          30,000 $                                                          34,691 $                                            4,691 $                              107,653 $                       1,392,347
Jun 30/2019 $                                                                          30,000 $                                                          34,809 $                                            4,809 $                              102,844 $                       1,397,156
Dec 31/2019 $                                                                          30,000 $                                                          34,929 $                                            4,929 $                                97,915 $                       1,402,085
Jun 30/2020 $                                                                          30,000 $                                                          35,052 $                                            5,052 $                                92,863 $                       1,407,137
Dec 31/2020 $                                                                          30,000 $                                                          35,178 $                                            5,178 $                                87,684 $                       1,412,316
Jun 30/2021 $                                                                          30,000 $                                                          35,308 $                                            5,308 $                                82,377 $                       1,417,623
Dec 31/2021 $                                                                          30,000 $                                                          35,441 $                                            5,441 $                                76,936 $                       1,423,064
Jun 30/2022 $                                                                          30,000 $                                                          35,577 $                                            5,577 $                                71,359 $                       1,428,641
Dec 31/2022 $                                                                          30,000 $                                                          35,716 $                                            5,716 $                                65,643 $                       1,434,357
Jun 30/2023 $                                                                          30,000 $                                                          35,859 $                                            5,859 $                                59,784 $                       1,440,216
Dec 31/2023 $                                                                          30,000 $                                                          36,005 $                                            6,005 $                                53,779 $                       1,446,221
Jun 30/2024 $                                                                          30,000 $                                                          36,156 $                                            6,156 $                                47,624 $                       1,452,376
Dec 31/2024 $                                                                          30,000 $                                                          36,309 $                                            6,309 $                                41,314 $                       1,458,686
Jun 30/2025 $                                                                          30,000 $                                                          36,467 $                                            6,467 $                                34,847 $                       1,465,153
Dec 31/2025 $                                                                          30,000 $                                                          36,629 $                                            6,629 $                                28,218 $                       1,471,782
Jun 30/2026 $                                                                          30,000 $                                                          36,795 $                                            6,795 $                                21,424 $                       1,478,576
Dec 31/2026 $                                                                          30,000 $                                                          36,964 $                                            6,964 $                                14,459 $                       1,485,541
Jun 30/2027 $                                                                          30,000 $                                                          37,139 $                                            7,139 $                                  7,321 $                       1,492,679
Dec 31/2027 $                                                                          30,000 $                                                          37,321 $                                            7,321 $                                        -   $                       1,500,000
Total $                                                                        600,000 $                                                        716,921 $                                        116,921