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d. Make a presentation in the 2020 Financial Statements. Present the journal on the redemption date.

d. Make a presentation in the 2020 Financial Statements. Present the journal on the redemption date.

Intermediate Accounting: Reporting And Analysis
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter14: Financing Liabilities: Bonds And Long-term Notes Payable
Section: Chapter Questions
Problem 7P: Wilbury Corporation issued 1 million of 13.5% bonds for 985,071.68. The bonds are dated and issued...
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The book I use: Intermediate Accounting, Kieso, ifrs Edition, Fourth Edition. 

I have Answers parts A, B, C, you just need to complete parts D and E

Answers to Part A, B, C  I uploaded in picture 1 and for questions I uploaded in picture 2.

 

Calculation Question: PT SIMBA issued bonds on May 1, 2020 with a nominal value 3,000,000,000, 10% interest date every November 1st and May 1st. The bonds mature May 1, 2025. The market interest rate at the time of issue was 12%. On November 1, 2024, the company redeemed the bonds at 99.95 plus any outstanding interest. Requested: Calculate the fair value of the bonds at the time of issuance. b. Prepare a discount/premium amortization schedule. C. Present the journal from issuance to the 2nd (two) interest payment. d. Make a presentation in the 2020 Financial Statements. Present the journal on the redemption date. e. n=5, i=10% n=5, i=12% n=10, i=5% n=10, i=6% Tabel II (PVF) 0,62092 0,56743 0,61391 0,55839 Table IV (PVAF) 3,79079 3,60478 7,72173 7,36009 Rp
Transcribed Image Text:Calculation Question: PT SIMBA issued bonds on May 1, 2020 with a nominal value 3,000,000,000, 10% interest date every November 1st and May 1st. The bonds mature May 1, 2025. The market interest rate at the time of issue was 12%. On November 1, 2024, the company redeemed the bonds at 99.95 plus any outstanding interest. Requested: Calculate the fair value of the bonds at the time of issuance. b. Prepare a discount/premium amortization schedule. C. Present the journal from issuance to the 2nd (two) interest payment. d. Make a presentation in the 2020 Financial Statements. Present the journal on the redemption date. e. n=5, i=10% n=5, i=12% n=10, i=5% n=10, i=6% Tabel II (PVF) 0,62092 0,56743 0,61391 0,55839 Table IV (PVAF) 3,79079 3,60478 7,72173 7,36009 Rp
1 Given in the question: 2 Nominal Value Nominal value 3 Interest Rate 4 Interest is paid on 5 Interest is paid on 6 Bonds Issue Date 7 Bonds Mature Date Market Interest Rate 9 10 The total Number of Holding Period 11 Interest is Paid every 12 Half-Yearly Interest Rate 13 Half-Yearly Market Interest Rate 14 15 A) Computation of Fair Value of Bonds 16 Total Number of interest Periods 17 Given in the question 18 19 n-10,1-5% 20 n-10, 1-6% 21 22 Interest Payment 23 24 Present Value of Nominal Value 25 Present Value of All Interest Payments 26 Total Fair Value of Bonds at time of issuance 27 28 Discount 29 30 B) Amortization Table 31 Date 32 May 1, 2020 33 November 1, 2020 34 May 1, 2021 35 November 1, 2021 36 May 1, 2022 37 November 1, 2022 38 May 1, 2023 39 November 1, 2023 40 May 1, 2024 41 November 1, 2024 42 May 1, 2025 43 44 45 C) say 46 Journal Entries 47 Date 48-A32 49 50 51 52 53-A33 54 55 56 57 58 A34 59 60 61 WA... 3000000000 0.1 November 1 May 1 May 1, 2020 May 1, 2025 0.12 SUM(83/2) SUM(88/2) -810*2 Table II (PV) 0.61391 0.55839 -SUM(82 812) -SUM(82*820) SUM(822 C20 -SUM(824825) -SUM(82-826) Interest Payment -B$22 -B$22 B522 -B$22 -B$22 -B$22 B522 -B$22 -B$22 -B$22 Accounts Cash Discount On bonds To Bonds Payable (Being bonds issued at maturity date on May 1, 2025) Interest Expense To Disocunt on Bonds To Cash (Being first interest payment paid) Interest Expense To Disocunt on Bonds To Cash (Being second interest payment paid) Years Months Table IV (PVAF) 7.72173 7.36009 Interest Expense SUM(E32*B$13) -SUM(E33 B$13) SUM(E34*B$13) -SUM(E35 B$13) SUM(E36 B$13) SUM(E37 B$13) SUM(E38*B$13) -SUM(E39*B$13) SUM[E40 B$13) -SUM(E41 B$13) Debit -826 C34 Amortization SUM(C33-833) -SUM(C34-834) SUM(C35-835) -SUM(C36-836) SUM(C37-837) -SUM(C38-638) SUM(C39-839) SUM(C40-840) SUM(C41-841) -SUM(C42-842) Credit SUM(C48:C49) -D33 -D34 -834 D Carrying Value -826 SUM(E32+D33) -SUM(E33+034) SUM(E34+035) -SUM(E35+036) SUM(E36+037) SUM(E37+038] SUM(E38+039) -SUM(E39+D40) SUM(E40+D41) -SUM(E41+D42)
Transcribed Image Text:1 Given in the question: 2 Nominal Value Nominal value 3 Interest Rate 4 Interest is paid on 5 Interest is paid on 6 Bonds Issue Date 7 Bonds Mature Date Market Interest Rate 9 10 The total Number of Holding Period 11 Interest is Paid every 12 Half-Yearly Interest Rate 13 Half-Yearly Market Interest Rate 14 15 A) Computation of Fair Value of Bonds 16 Total Number of interest Periods 17 Given in the question 18 19 n-10,1-5% 20 n-10, 1-6% 21 22 Interest Payment 23 24 Present Value of Nominal Value 25 Present Value of All Interest Payments 26 Total Fair Value of Bonds at time of issuance 27 28 Discount 29 30 B) Amortization Table 31 Date 32 May 1, 2020 33 November 1, 2020 34 May 1, 2021 35 November 1, 2021 36 May 1, 2022 37 November 1, 2022 38 May 1, 2023 39 November 1, 2023 40 May 1, 2024 41 November 1, 2024 42 May 1, 2025 43 44 45 C) say 46 Journal Entries 47 Date 48-A32 49 50 51 52 53-A33 54 55 56 57 58 A34 59 60 61 WA... 3000000000 0.1 November 1 May 1 May 1, 2020 May 1, 2025 0.12 SUM(83/2) SUM(88/2) -810*2 Table II (PV) 0.61391 0.55839 -SUM(82 812) -SUM(82*820) SUM(822 C20 -SUM(824825) -SUM(82-826) Interest Payment -B$22 -B$22 B522 -B$22 -B$22 -B$22 B522 -B$22 -B$22 -B$22 Accounts Cash Discount On bonds To Bonds Payable (Being bonds issued at maturity date on May 1, 2025) Interest Expense To Disocunt on Bonds To Cash (Being first interest payment paid) Interest Expense To Disocunt on Bonds To Cash (Being second interest payment paid) Years Months Table IV (PVAF) 7.72173 7.36009 Interest Expense SUM(E32*B$13) -SUM(E33 B$13) SUM(E34*B$13) -SUM(E35 B$13) SUM(E36 B$13) SUM(E37 B$13) SUM(E38*B$13) -SUM(E39*B$13) SUM[E40 B$13) -SUM(E41 B$13) Debit -826 C34 Amortization SUM(C33-833) -SUM(C34-834) SUM(C35-835) -SUM(C36-836) SUM(C37-837) -SUM(C38-638) SUM(C39-839) SUM(C40-840) SUM(C41-841) -SUM(C42-842) Credit SUM(C48:C49) -D33 -D34 -834 D Carrying Value -826 SUM(E32+D33) -SUM(E33+034) SUM(E34+035) -SUM(E35+036) SUM(E36+037) SUM(E37+038] SUM(E38+039) -SUM(E39+D40) SUM(E40+D41) -SUM(E41+D42)
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