On January 1, 2015, Aylmer issued $300,000 14% 10-year bonds. The bonds were issued for investors to have a yield of 12%. Because of the high interest rate, Aylmer decided to call the bonds on December 31, 2020 at 108. No entries were made in 2020 in respect to this bond. In the Excel spreadsheet, see the tab labelled "Bonds Payable - Series 1" to determine the carrying value, create the amortization schedule and perform any additional calculations. NOTE - the amount on the trial balance (Bonds Payable - Series 1) is your check number for the amortization schedule at December 31, 2020 - BEFORE ADJUSTMENTS and 2020 Interest payment. Present Value Calculation & Amortization Schedule PV Rate Nper Pymt FV Type
Hello, could you kindly assist with these and write a full explanation and
On January 1, 2015, Aylmer issued $300,000 14% 10-year bonds. The bonds were issued for investors to have a yield of 12%. Because of the high interest rate, Aylmer decided to call the bonds on December 31, 2020 at 108. No entries were made in 2020 in respect to this bond.
In the Excel spreadsheet, see the tab labelled "Bonds Payable - Series 1" to determine the carrying value, create the amortization schedule and perform any additional calculations.
NOTE - the amount on the
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| Nper | |||
| Pymt | |||
| FV | |||
| Type |
On January 1, 2020, the company issued $3,000,000, 6% bonds with a 10-year maturity. The bonds were issued to investors that require an effective interest rate of 7%. The accountant did NOT record the issuance of these bonds. Interest is paid annually and the accountant did NOT record the interest payment transaction. The effective interest method is used to amortize any premium or discount.
NOTE - round calculations to nearest dollar.
In the Excel spreadsheet, see the tab labelled "Bonds Payable - Series 2" to make any calculations, including an amortization schedule, to support journal entries.
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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 |
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