Homework 12 Bonds Payable Bond X Par Value Term Contract Interest Rate Market Interest Rate Issue Price 100,000 5 years BX 10% 96 1) Is this bond being issued at Par Value, at a Discount or at a Premium? 2) If the bond pays interest semi-annually, how many total interest payments will be made? 3) What is the amount of each interest payment? 4) How much cash will be received when this bond is issued? 5) If there is a Discount or Premium, how much is 6) If there is a Discount or Premium, how much will be amortized with each interest payment? 7) What amount of interest expense will be booked each time interest is t's paid? 3) What is the journal entry at issuance? DR/CR Account Debat Credit 9) What is the journal for the semi-annual interest payment? DR/CR Account Debih Credit 10) What is the journal at retirement? ? DR/CR Account Debit Credit 1,000 Homework 12 Bonds Payable Bond Y Par Value Term Contract Interest Rate Market Interest Rate issue Price 2 years 8% 8% 300 1) Is this band being issued at Par Value, at a Discount, or at a Premium? 2) If the bond pays interest semi-annually, how many total interest payments will be made? 3) What is the amount of each interest payment? 4) How much cash will be received when this bond is issued? 5) If there is a Discount or Premium, how much is 6) if there is a Discount or Premium, how much will be amortized with each interest payment? 7) What amount of Interest expense will be booked each time interest is paid? B) What is the journal entry at Issuance? DR/CR Account Debit Credit 9) What is the Journal for the semi-annual Interest payment? DR/CR Account Deble Credit 10) What is the journal at retirement? Debit Credit DR/OR Account 50,000 Homework 12 Bonds Payable Bond Z Par Value Term Contract Interest Rate Market Interest Rate Issue Price 10 years 8% 5% 104 1) Is this bond being issued at Par Value, at a Discount, or at a Premium? 2) If the bond pays Interest semi-annually, how many total interest payments will be made? 3) What is the amount of each interest payment? 4) How much cash will be received when this bond is issued? 5) If there is a Discount or Premium, how much is it? 6) if there is a Discount or Premlum, how much will be amortized with each interest payment? 7) What amount of Interest expense will be booked each time interest is paid? 8) What is the journal entry at issuance? DR/CR Account Debit Credit 9) What is the Journal for the semi-annual interest payment? Account Debit Credit DR/CR 10) What is the journal at retirement? Account Debit Credit DR/CR
