CoboCards App FAQ & Wishes Feedback
Language: English Language
Sign up for free  Login

This flashcard is just one of a free flashcard set. See all flashcards!

All main topics / Accounting / General / Final Exam - ACCT 2101
17
1) What is the Total Bond Interest Exp for the following bond.
2) What is the JE for its Semiannual Interest Exp?

Face Value: 1,000,000
Issue Price: 1,081,145
Stated Interest: 10%
Market Interest: 8%
1)

1,000,000 + 500,000 (1,000,000 x 10% x 5) = 1,500,000

1,500,000 - 1,081,145 = 418,855

2)

Bond Interest Expense                  41,885
Premium on Bonds Payable         8,115
              Cash                                                      50,000

Premium on Bonds Payable / 10 = 8,115
New comment
Flashcard info:
Author: savhighsmith
Main topic: Accounting
Topic: General
School / Univ.: UGA
City: Athens
Published: 01.05.2010

Cancel
Email

Password

Login    

Forgot password?
Deutsch  English