Question
AC312 - Bonds - Excel Project Instructions:You must complete a work in Excel using formulas. Please submit your Excel file as an attachment to the
AC312 - Bonds - Excel Project
Instructions:You must complete a work in Excel using formulas. Please submit your Excel file as an attachment to the link provided in the classroom.
Bond interest and discount amortization.
BU Curriculum Corporation issued $900,000 of 7% bonds on November 1, 2017, due on November 1, 2022. The interest is to be paid twice a year on May 1 and November 1. The bonds were sold to yield 9% effective annual interest.BU Curriculum Corporation closes its books annually on December 31.
Instructions
(a) Complete amortization schedule for the above bond (for all periods) in a similar format as below.(Round all answers to the nearest dollar.)Use the effective-interest method.
date | Credit Cash | Debit Interest Expense| Credit Bond Discount | Carrying Amount of Bonds
Use the PV. formula in Excel; see posted bond excel sheet in the classroom
Nov. 1, 2017
May 1, 2018
.
.
.
.
(b) Prepare the journal entries for the following:
1. November 1, 2017 bond issue
2. Adjusting entry for December 31, 2017 (adjusting entry should cover 2 months)
3. May 1, 2018 entry
4. November 1, 2018 entry
5. Adjusting entry from December 31, 2018
(c) Compute the interest expense to be reported in the income statement for the year
ended December 31, 2017 and December 31, 2018.
(d)Complete amortization schedule for the above bond (for all periods) using the straight-line amortization method (entries are not required).
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started