发行债券的三种方式.ppt

发行债券的三种方式
Recording bonds issuance
Bonds issued at a discount
The issuing price?
Price=PV of interest + PV of fal entry to record the interest payments:
On Dec. 31, 2013 bonds were mature:
Interest expense
=$693,456×14%×(6/12)=$48,544

Dr. Interest expense 48,544
Cr. Cash 42,000
Discount on bonds payable 6,544
Dr. Bonds payable 700,000
Cr. Cash 700,000
Recording bonds issuance
Bonds issued at a premium
Issuing price:
Price=PV of interest + PV of face amount
Illustration 9-3 P378
PV of interest:
Interest payment
=$700,000×12%×(6/12)=$42,000
n=2×3=6 semiannual periods
i=10%×(6/12)=5%
PV of interest=$42,000×=$213,179
Recording bonds issuance
Illustration 9-3 P378
PV of face amount:
Face amount=$700,000
n=2×3=6 semiannual periods
i=10%×(6/12)=5%
PV of face amount
=$700,000×=$522,354
Recording bonds issuance
Illustration 9-3 P378
Price of the bonds
=PV of interest + PV of face amount
=$213,179+$522,354=$735,533

On Jan. 1, 2011, issued the bonds:
Dr. Cash 735,533
Cr. Bonds payable 700,000
Premium on bonds payable 35,533
Recording bonds issuance
Illustration 9-3 P378
On June 30, 2011, paid the interest:
Interest expense
=$735,533×10%×(6/12)=$36,777
Interest actually paid
=$700,000×12%×(6/12)=$42,000

Dr. Interest expense 36,777
Premium on bonds payable 5,223
Cr. Cash 42,000
Recording bonds issuance
Illustration 9-3 P378
On June 30 2012, Dec. 312012, June 30 2013, make the same journal entry to record the interest payments:

On Dec. 31, 20