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.
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.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
100%
Note: RP AND IDR SAME
The book I use: Intermediate Accounting, Kieso, ifrs Edition, Fourth Edition
Questions in image
![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](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F1a9b7686-a438-4d07-a699-83dc18fe6120%2F88c71154-4e11-4225-b56e-f2dc9726fe51%2Fip3cmu_processed.jpeg&w=3840&q=75)
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
Expert Solution
![](/static/compass_v2/shared-icons/check-mark.png)
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps with 2 images
![Blurred answer](/static/compass_v2/solution-images/blurred-answer.jpg)
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
![FINANCIAL ACCOUNTING](https://compass-isbn-assets.s3.amazonaws.com/isbn_cover_images/9781259964947/9781259964947_smallCoverImage.jpg)
![Accounting](https://www.bartleby.com/isbn_cover_images/9781337272094/9781337272094_smallCoverImage.gif)
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
![Accounting Information Systems](https://www.bartleby.com/isbn_cover_images/9781337619202/9781337619202_smallCoverImage.gif)
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
![FINANCIAL ACCOUNTING](https://compass-isbn-assets.s3.amazonaws.com/isbn_cover_images/9781259964947/9781259964947_smallCoverImage.jpg)
![Accounting](https://www.bartleby.com/isbn_cover_images/9781337272094/9781337272094_smallCoverImage.gif)
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
![Accounting Information Systems](https://www.bartleby.com/isbn_cover_images/9781337619202/9781337619202_smallCoverImage.gif)
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
![Horngren's Cost Accounting: A Managerial Emphasis…](https://www.bartleby.com/isbn_cover_images/9780134475585/9780134475585_smallCoverImage.gif)
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
![Intermediate Accounting](https://www.bartleby.com/isbn_cover_images/9781259722660/9781259722660_smallCoverImage.gif)
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
![Financial and Managerial Accounting](https://www.bartleby.com/isbn_cover_images/9781259726705/9781259726705_smallCoverImage.gif)
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education