Answered step by step
Verified Expert Solution
Link Copied!

Question

...
1 Approved Answer

I'm attaching my Wileyplus question and solution. I need help with the excel problem. what formula do we need to use to calculate this amortization

I'm attaching my Wileyplus question and solution. I need help with the excel problem. what formula do we need to use to calculate this amortization table? thanks.please help me to solve this questions with solution.
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
On June 30, 2020, Pina Company issued $3,270,000 face value of 13%. 20-year bonds at $3,516,000, a yield of 12% Pina uses the effective interest method to amortize bond premium or discount. The bonds pay semiannual interest on June 30 and December 31. (a) Your answer is correct. Prepare the journal entries to record the following transactions. (Round answer to decimal places, es 38,548. If no entry is required, select "No Entry for the account titles and enter for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually) (1) (2) The issuance of the bonds on June 30, 2020. The payment of interest and the amortization of the premium on December 31, 2020 The payment of interest and the amortization of the premium on June 30, 2021 (3) ) (4) The payment of interest and the amortization of the premium on December 31, 2021 Date Account Tities and Explanation Debit Credit June 30, 2020 Cash 3516000 Bonds Payable 3270000 246000 Premium on Bonds Payable 210960 December 31.2020 Interest Expense 1590 Premium on Bonds Payable 212550 Cash 210865 June 30, 2021 interest Expense Premium on Bonds Payable 1590 Cash 212550 June 30, 2021 Interest Expense 210865 Premium on Bonds Payable 1685 Cash 212550 December 31, 2021 Interest Expense 210764 Premium on Bonds Payable 1786 212550 Cash Show the proper balance sheet presentation for the liability for bonds payable on the December 31, 2021, balance sheet. (Round answers to decimal places, eg. 38,548.) Pina Company Balance Sheet December 31, 2021 Long-term Liabilities Bonds Payable 3270000 Premium on Bonds Payable 240939 Book Value of Bonds Payable $ 3510939 A 0 G H K L M Instructions: 1. Open the Bond Bonus Problem in Wileyplus. Enter the provided items for your problem: Bond Face Value Bond State Rate Bond Market Rate Number of years Bond Interest Payment 3 4 5 6 7 B 9 10 11 12 13 14 15 16 17 18 19 In the boxed cell below, compute the Present Value of the bonus using the Excel PV function. Excel Computed Bond Present Value WileyPlus Selling Price (PV): Difference due to rounding $ $ $ Note: Due to rounding in Wileyplus, the present value may be slightly off from selling price IPV) in Wileyplus. Small difference is OK Premium Balance Bond CV 20 21 22 23 24 25 26 27 21 29 30 2. Complete the amortization table. Use the rounded Selling Price (PV) from WileyPlus to start the amortization table Premium Date Interest Payment Interest Expense Amortization 6/30/20 1 12/31/20 2 6/30/21 3 12/31/21 4 6/30/22 5 12/31/22 G 6/30/23 7 12/31/23 8 6/30/24 9 12/31/24 6325 A D E G H 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 B 6/30/25 12/31/25 6/30/26 12/31/26 6/30/27 12/31/27 6/30/28 12/31/28 6/30/29 12/31/29 6/30/30 12/31/30 6/30/31 12/31/31 6/30/32 12/31/32 6/30/33 12/31/33 6/30/34 12/31/34 6/30/35 12/31/35 6/30/36 12/31/36 6/30/37 12/31/37 6/30/38 12/31/38 6/30/39 12/31/39 ant Sheets 45 47 48 49 SO 51 52 53 54 55 56 57 58 59 60 1 C E F G H 1 1 K L M 29 30 50 51 52 53 54 55 56 57 58 59 60 12/31/36 6/30/35 12/31/35 6/30/36 12/31/36 REBRER ZE/DE/9 32 33 34 35 35 37 38 39 40 12/31/32 6/30/38 12/31/18 6/30/19 132129 6/30/40 19 62 Notes Due to rounding in original PV, ending CV may be off from face value slightly. Seal difference hok. 03 64 65 G 67 Notet in the issuance entry, use the rounded present value provided in Wileyplus For all other entries and parts, use amounts from the table above

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Fundamental accounting principle

Authors: John J. Wild, Ken W. Shaw, Barbara Chiappetta

21st edition

978-0078025587

Students also viewed these Accounting questions