bonds. short problem 1 and 2 p97 667 p990 000 short problem 3 p2 245 704 p2 154296 p2 400 000
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BondsBonds
Short Problem 1 and 2
Short Problem 1 and 2
P97 667
P990 000
Short Problem 3Short Problem 3
P2 245 704
P2 154296
P2 400 000
Short Problem 4 and 5
P 645
Gain: P51 200
Short Problem 6 and 7
Short Problem 6 and 7
Gain: P13 500
Gain: P8 000
Short Problem 8 and 9
Short Problem 8 and 9
Answers at the next slides…
Problem 8Problem 8• July 1 19x9• Debit:
• Bond Interest Expense 3800• Bonds Payable 100 000• Loss on Retirement of Bonds Payable 6200
• Credit:• Discount on Bonds Payable (800 + 4200) 5000
• Cash (3000 + 102 000) 105 000
• July 1 19x9• Debit:
• Bond Interest Expense 3800• Bonds Payable 100 000• Loss on Retirement of Bonds Payable 6200
• Credit:• Discount on Bonds Payable (800 + 4200) 5000
• Cash (3000 + 102 000) 105 000
Problem 9a – Issuer’s BookProblem 9a – Issuer’s Book• April 1 19x2
• Debit:• Bond Interest Expense 2 800• Bond Interest Payable 1 000• Premium on Bonds Payable (200 + 2933) 3133
• Credit:• Cash 4000• Common Stock 30 000• APIC: Common Stock 72 933
• April 1 19x2• Debit:
• Bond Interest Expense 2 800• Bond Interest Payable 1 000• Premium on Bonds Payable (200 + 2933) 3133
• Credit:• Cash 4000• Common Stock 30 000• APIC: Common Stock 72 933
Problem 9a – Investor’s BookProblem 9a –
Investor’s Book• April 1 19x2• Debit:
• Cash 4 000
• Credit:• Bond Interest Revenue 2 800• Bond Interest Receivable 1 000• Investment on Bonds 200
• April 1 19x2• Debit:
• Cash 4 000
• Credit:• Bond Interest Revenue 2 800• Bond Interest Receivable 1 000• Investment on Bonds 200
Problem 9b – Issuer’s BookProblem 9b – Issuer’s Book• April 1, 19x2
• Debit:• Interest Payable 1 000• Interest Expense 2 555• Premium on Bonds Payable (445 + 1733) 2178
• Bonds Payable 100 000
• Credit:• Cash 4 000• Common Stocks 30 000• APIC: Common Stocks 71 733
• April 1, 19x2• Debit:
• Interest Payable 1 000• Interest Expense 2 555• Premium on Bonds Payable (445 + 1733) 2178
• Bonds Payable 100 000
• Credit:• Cash 4 000• Common Stocks 30 000• APIC: Common Stocks 71 733
Problem 9b – Investor’s BookProblem 9b –
Investor’s Book• April 1, 19x2• Debit:
• Cash 4 000• Investment on Stocks 101 733
• Credit:• Interest Receivable 1 000• Interest Revenue 2 555• Investment on Bonds (445 + 101 733) 102 178
• April 1, 19x2• Debit:
• Cash 4 000• Investment on Stocks 101 733
• Credit:• Interest Receivable 1 000• Interest Revenue 2 555• Investment on Bonds (445 + 101 733) 102 178
Short Problem 10 and 11
Short Problem 10 and 11
P4 349 808
P5 075 000
Problem 10aProblem 10a• April 1, 19x6
• Cash 4 380 000• Premium on Bonds Payable 380 000• Bonds Payable 4 000 000
• October 1, 19x6• Interest Payable 190 000
• Cash 190 000
• April 1, 19x7• Interest Expense 174 608• Premium on Bonds Payable 15 932
• Cash 190 000
• April 1, 19x6• Cash 4 380 000
• Premium on Bonds Payable 380 000• Bonds Payable 4 000 000
• October 1, 19x6• Interest Payable 190 000
• Cash 190 000
• April 1, 19x7• Interest Expense 174 608• Premium on Bonds Payable 15 932
• Cash 190 000
Short Problem 12 and 13
Short Problem 12 and 13
P80 000
Gain: 116 000
Short Problem 14 and 15
Short Problem 14 and 15
A. 106 510
B. 50 000
P 4 385 340
Short Problem 16Short Problem 16
P 220 000
Long Problem 1Long Problem 1
819 700292 300
350 385251 155
LP 1 – Requirement 1c
LP 1 – Requirement 1c• Jan 31, 2004
• Cash 819 700• Premium on Bonds Payable 19 700• Bonds Payable 800 000
• July 31, 2004• Interest Expense 49 182• Premium on Bonds Payable 2 818
• Cash 52 000
• December 31, 2004• Interest Expense 40 844• Premium on Bonds Payable 11 156
• Interest Payable 52 000
• Jan 31, 2004• Cash 819 700
• Premium on Bonds Payable 19 700• Bonds Payable 800 000
• July 31, 2004• Interest Expense 49 182• Premium on Bonds Payable 2 818
• Cash 52 000
• December 31, 2004• Interest Expense 40 844• Premium on Bonds Payable 11 156
• Interest Payable 52 000
LP 1 – Requirement 2LP 1 – Requirement 2• Jan 31, 2004
• Cash 800 000• Notes Payable 800 000
• Dec 31, 2004• Interest Expense 110 000
• Interest Payable 110 000
• Jan 31, 2005• Interest Payable 110 000• Interest Expense 10 000• Notes Payable 230 285
• Cash 350 385
• Jan 31, 2004• Cash 800 000
• Notes Payable 800 000
• Dec 31, 2004• Interest Expense 110 000
• Interest Payable 110 000
• Jan 31, 2005• Interest Payable 110 000• Interest Expense 10 000• Notes Payable 230 285
• Cash 350 385
Long Problem 2Long Problem 2
5 596 125
LP 2aLP 2a• May 1, 19x6
• Cash 5 550 000• Discount on Bonds Payable 450 000
• Bonds Payable 6 000 000
• Nov 1, 19x6• Interest Payable 255 000
• Cash 255 000
• May 1, 19x7• Interest Expense 278 625
• Discount on Bonds Payable 23 625• Cash 255 000
• May 1, 19x6• Cash 5 550 000• Discount on Bonds Payable 450 000
• Bonds Payable 6 000 000
• Nov 1, 19x6• Interest Payable 255 000
• Cash 255 000
• May 1, 19x7• Interest Expense 278 625
• Discount on Bonds Payable 23 625• Cash 255 000
Long Problem 3Long Problem 3
LP 3 LP 3 • Retirement• Apr 30 20x4
• Bonds Payable 100 000• Loss on Calling Bonds 10 000
• Discount on Bonds Payable 4 000• Cash 106 000
• Issuance • Mar 30 20x4
• Cash 101 000• Premium on Bonds Payable 1 000• Bonds Payable 100 000
• Retirement• Apr 30 20x4
• Bonds Payable 100 000• Loss on Calling Bonds 10 000
• Discount on Bonds Payable 4 000• Cash 106 000
• Issuance • Mar 30 20x4
• Cash 101 000• Premium on Bonds Payable 1 000• Bonds Payable 100 000
Long Problem 4Long Problem 4
LP 4 – Issuer’s BookLP 4 – Issuer’s Book• Dec 31, 20x5
• Interest Expense 42 324• Discount on Bonds Payable 5 000• Interest Payable 37 324
• Feb 1, 20x6 • Interest Expense 1 333• Interest Payable 37 324
• Discount on Bonds Payable 179• Cash 38 657
• Bonds Payable 200 000• Discount on Bonds Payable 7 143• APIC: Common Stock 42 857• Common Stocks 150 000
• Dec 31, 20x5• Interest Expense 42 324
• Discount on Bonds Payable 5 000• Interest Payable 37 324
• Feb 1, 20x6 • Interest Expense 1 333• Interest Payable 37 324
• Discount on Bonds Payable 179• Cash 38 657
• Bonds Payable 200 000• Discount on Bonds Payable 7 143• APIC: Common Stock 42 857• Common Stocks 150 000
LP 4 – Investor’s Book
LP 4 – Investor’s Book• Dec 31, 20x5
• Investment in Bonds 5 000• Interest Receivable 37 324
• Interest Revenue 42 324
• Feb 1, 20x6• Cash 38 657• Investment on Bonds 179
• Interest Revenue 1 333• Interest Receivable 37 324
• Investment in Stocks 192 857• Investment in Bonds 192 857
• Dec 31, 20x5• Investment in Bonds 5 000• Interest Receivable 37 324
• Interest Revenue 42 324
• Feb 1, 20x6• Cash 38 657• Investment on Bonds 179
• Interest Revenue 1 333• Interest Receivable 37 324
• Investment in Stocks 192 857• Investment in Bonds 192 857
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