1. Bonds Payable Series 1

On January 1, Y0, Aylmer issued $400,000 12% 10-year bonds. Interest is paid on an annual basis. The bonds were issued for investors to have a yield of 8%. Because of the high interest rate, Aylmer decided to call the bonds on December 31, Y6 at 118. No entries were made in Y6 in respect to this bond (interest is owed for Y6 since the bonds were outstanding for Y6).

In the Excel spreadsheet, see the tab labelled Bonds Payable Series 1 to determine the carrying value, create the amortization schedule and perform any additional calculations.

NOTE the amount on the trial balance (Bonds Payable Series 1) is your check number for the amortization schedule at December 31, Y5 BEFORE ADJUSTMENTS and Y6 Interest payment.

Present Value Calculation & Amortization Schedule
PV
Rate
Nper
Pymt
FV
Type

1. Bonds Payable Series 2

On January 1, Y6, the company issued $2,930,000, 5% bonds with a 10-year maturity. The bonds were issued to investors that require an effective interest rate of 7.50%. The accountant did NOT record the issuance of these bonds. Interest is paid annually and the accountant did NOT record the interest payment transaction. The effective interest method is used to amortize any premium or discount.

NOTE round calculations to nearest dollar.

In the Excel spreadsheet, see the tab labelled Bonds Payable Series 2 to make any calculations, including an amortization schedule, to support journal entries.

Present Value Calculation & Amortization Schedule
PV
Rate
Nper
Pymt
FV
Type

1. Bonds Payable Series 3

On December 29, Y6, the company issued 750,000 4% 5-year bonds for 110. The bonds were issued to offer a 2.5% yield. The excess of the amount received compared to the present value was due to the conversion feature. Interest on these bonds is paid annually. NOTE ignore interest accrual for the short time in Y6.

Each $100 bond can be converted into 100 common shares.

Interest is paid annually. This transaction was NOT recorded in the trial balance.

In the Excel spreadsheet, see the tab labelled Bonds Payable Series 3 to make any calculations, including an amortization schedule, to support journal entries.

Present Value Calculation & Amortization Schedule
PV
Rate
Nper
Pymt
FV
Type

Please make any required calculations and prepare journal entries