Bonds Payable – Series 3 On December 29, 2020, the company issued 400,000 4% 5-year bonds for 108. The bonds were issued to offer a 3% yield. The excess of the amount received compared to the present value was due to the conversion feature. Each $100 bond can be converted into 100 common shares. Interest is paid annually. This transaction was NOT recorded in the trial balance. In the Excel spreadsheet, see the tab labelled “Bonds Payable – Series 3” to make any calculations, including an amortization schedule, to support journal entries. Present Value Calculation & Amortization Schedule PV Rate Nper Pymt FV Type
Bonds Payable – Series 3 On December 29, 2020, the company issued 400,000 4% 5-year bonds for 108. The bonds were issued to offer a 3% yield. The excess of the amount received compared to the present value was due to the conversion feature. Each $100 bond can be converted into 100 common shares. Interest is paid annually. This transaction was NOT recorded in the trial balance. In the Excel spreadsheet, see the tab labelled “Bonds Payable – Series 3” to make any calculations, including an amortization schedule, to support journal entries. Present Value Calculation & Amortization Schedule PV Rate Nper Pymt FV Type
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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- Bonds Payable – Series 3
On December 29, 2020, the company issued 400,000 4% 5-year bonds for 108. The bonds were issued to offer a 3% yield. The excess of the amount received compared to the present value was due to the conversion feature.
Each $100 bond can be converted into 100 common shares.
Interest is paid annually. This transaction was NOT recorded in the
In the Excel spreadsheet, see the tab labelled “Bonds Payable – Series 3” to make any calculations, including an amortization schedule, to support
| Present Value Calculation & Amortization Schedule | ||
| PV | ||
| Rate | ||
| Nper | ||
| Pymt | ||
| FV | ||
| Type |
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