Question
In: Accounting
Date Cash Interest Interest Expense Discount Amorization Discount Balance Bond Carrying value 1/1/18 170,604 1,829,396 6/1/18...
| Date | Cash Interest | Interest Expense | Discount Amorization | Discount Balance | Bond Carrying value | |
|---|---|---|---|---|---|---|
| 1/1/18 | 170,604 | 1,829,396 | ||||
| 6/1/18 | 40,000 | 54,882 | 14,882 | 155,722 | 1,844,278 | |
| 270 | 2,000,000 |
The info to put into the PV function that I used was: FV -2,000,000, PMT -40,000, NPER 10, Rate 0.03.
Info was) Semi- anual interest, Issued bond for 2,000,000 Jan 1st 2018, matures 5 years, Market Rate interest 6%, Stated Interst Rate 4%.
The goal is to get the bottom discount balance at the end of the table to 0, and the Bond Carrying Value to be 2,00,000. I am unsure how i have 270 at the bottom, and not 0. Do you know the correct way of calculating this?
Solutions
ekkarill92 answered 1 year agoRelated Solutions
Date Cash interest Interest revenue Amortization of discount Discount balance Amortized Cost 7/1/2018 $ 33,367 $...
Date
Cash
interest
Interest
revenue
Amortization
of discount
Discount
balance
Amortized
Cost
7/1/2018
$ 33,367
$ 666,633
12/31/2018
$ 42,000
$ 46,664
$ 4,664
28,703
671,297
6/30/2019
$ 42,000
46,991
4,991
23,712
676,288
12/31/2019
$ 42,000
47,340
5,340
18,372
681,628
6/30/2020
$ 42,000
47,714
5,714
12,658
687,342
12/31/2020
$ 42,000
48,114
6,114
6,544
693,456
6/30/2021
$ 42,000
48,542
6,542
2
699,998
USING THE TABLE ABOVE PLEASE ENTER USING FORMULAS OR ENTER
MANUALLY FOR THE FINANCIAL STATEMENT BELOW.
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If bond interest expense is $280,000, bond interest payable
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a) $273,000
b) $287,000
c) $271,000
d) $280,000
The bond interest expense recorded on an interest payment date is decreased: A. only if the...
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Compute bond proceeds, amortizing discount by interest method, and interest expense Boyd Co. produces and sells...
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$72,000,000 of three-year, 9% bonds at a market (effective)
interest rate of 12%, with interest payable semiannually. This
information has been collected in the Microsoft Excel Online file.
Open the spreadsheet, perform the required analysis, and input your
answers in the questions below. Open spreadsheet Compute the
following: The amount of cash...
Compute bond proceeds, amortizing discount by interest method, and interest expense Boyd Co. produces and sells...
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and interest expense Boyd Co. produces and sells aviation
equipment. On the first day of its fiscal year, Boyd issued
$84,000,000 of five-year, 7% bonds at a market (effective) interest
rate of 11%, with interest payable semiannually. This information
has been collected in the Microsoft Excel Online file. Open the
spreadsheet, perform the required analysis, and input your answers
in the questions below. Open spreadsheet Compute the following: The
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Compute bond proceeds, amortizing discount by interest method, and interest expense DATA Face amount of bonds...
Compute bond proceeds, amortizing discount by interest
method, and interest expense
DATA
Face amount of bonds
$84,000,000
Contract rate of interest
7%
Term of bonds, years
5
Market rate of interest
11%
Interest payment
Semiannual
Using formulas and cell references, perform the required analysis,
and input your answers into the Amount column. Transfer the numeric
results for the green entry cells (C13:C16) into the appropriate
fields in CNOWv2 for grading.
Amount
Formulas
a.
PV of cash proceeds
b.
Discount amortized...
Compute bond proceeds, amortizing discount by interest method, and interest expense DATA Face amount of bonds...
Compute bond proceeds, amortizing discount by interest method,
and interest expense DATA Face amount of bonds $84,000,000 Contract
rate of interest 7% Term of bonds, years 5 Market rate of interest
11% Interest payment Semiannual Using formulas and cell references,
perform the required analysis, and input your answers into the
Amount column. Transfer the numeric results for the green entry
cells (C13:C16) into the appropriate fields in CNOWv2 for grading.
Amount Formulas a. PV of cash proceeds b. Discount amortized...
Compute bond proceeds, amortizing discount by interest method, and interest expense Boyd Co. produces and sells...
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of its fiscal year, Boyd issued $89,000,000 of three-year, 9% bonds
at a market (effective) interest rate of 12%, with interest payable
semiannually. This information has been collected in the Microsoft
Excel Online file. Open the spreadsheet, perform the required
analysis, and input your answers in the questions below.
Open spreadsheet
Compute the following:
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