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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.

Cornerstones of Financial Accounting
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter9: Long-term Liabilities
Section: Chapter Questions
Problem 96PSA
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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
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
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