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10:50 AM Tue Mar 29 80% EXCEL - Bonds Payable_Instrucciones Bond proceeds - Present Value: (Discount)/Premium $ $ AMORTIZATION SCHEDULE Interest Payment Interest Expense Date Amortization Book Value 1/1/2019 6/30/19 12/31/19 6/30/20 12/31/20 6/30/21 12/31/21 Total $ $ $ DR CR Journal Entries 1/1/2019 and so on... 10:49 AM Tue Mar 29 80% EXCEL - Bonds Payable_ Instrucciones INSTRUCTIONS: Based on the explanation of each entry, a. Set up an Excel sheet similar to the example below. b. Determine the proceeds from the issuance of bonds using Excel's built-in formula for PRESENT VALUE = PV. Function Arguments ? PV Rate Nper - number - number - 26. number Pmt Fv - number - number Type Returns the present value of an investment the total amount that a series of future payments is worth now. Rate is the interest rate per period. For example, use 66,44 for quarterly Payments at AR C. Set up an amortization schedule (entirely using formulas) in Excel under the effective interest method. d. Prepare the entries in Excel) that should have been made on 1/1/19 and 6/30/19 assuming the company uses the effective interest method to amortize the premium and discount on its bonds. e. Assuming the company closes its books on December 31st, prepare the journal entries for 12/31/19 and 1/1/20 f. What is the effect of these errors on Net Income, Earnings per Share, Total Liabilities and Retained Earnings if they are not discovered (detected) before the publication of the annual report? g. Assuming the error was discovered at the end of 2019 but before closing the books, prepare the necessary journal entry(ies) to correct the error. h. Assuming the error was discovered at the beginning of January of 2020, prepare the necessary journal entry(ies) to correct the error. Prof. Anibal Bez-Daz 2019 10:50 AM Tue Mar 29 80% EXCEL - Bonds Payable_ Instrucciones Example Excel Worksheet CONT 4002 Prof. Name of group members: $ Principal: Nominal interest rate: Effective interest rate: Periods: Annuity (interest payment): % $ Bond proceeds = Present Value: (Discount)/Premium $ $ AMORTIZATION SCHEDULE Interest Date Payment Interest Expense Amortization Book Value 1/1/2019 6/30/19 12/31/19 6/30/20 12/31/20 6/30/21 12/31/21 Total $ $ $ Journal Entries DR CR 10:50 AM Tue Mar 29 80% EXCEL - Bonds Payable_Instrucciones Bond proceeds - Present Value: (Discount)/Premium $ $ AMORTIZATION SCHEDULE Interest Payment Interest Expense Date Amortization Book Value 1/1/2019 6/30/19 12/31/19 6/30/20 12/31/20 6/30/21 12/31/21 Total $ $ $ DR CR Journal Entries 1/1/2019 and so on... 10:49 AM Tue Mar 29 80% EXCEL - Bonds Payable_ Instrucciones INSTRUCTIONS: Based on the explanation of each entry, a. Set up an Excel sheet similar to the example below. b. Determine the proceeds from the issuance of bonds using Excel's built-in formula for PRESENT VALUE = PV. Function Arguments ? PV Rate Nper - number - number - 26. number Pmt Fv - number - number Type Returns the present value of an investment the total amount that a series of future payments is worth now. Rate is the interest rate per period. For example, use 66,44 for quarterly Payments at AR C. Set up an amortization schedule (entirely using formulas) in Excel under the effective interest method. d. Prepare the entries in Excel) that should have been made on 1/1/19 and 6/30/19 assuming the company uses the effective interest method to amortize the premium and discount on its bonds. e. Assuming the company closes its books on December 31st, prepare the journal entries for 12/31/19 and 1/1/20 f. What is the effect of these errors on Net Income, Earnings per Share, Total Liabilities and Retained Earnings if they are not discovered (detected) before the publication of the annual report? g. Assuming the error was discovered at the end of 2019 but before closing the books, prepare the necessary journal entry(ies) to correct the error. h. Assuming the error was discovered at the beginning of January of 2020, prepare the necessary journal entry(ies) to correct the error. Prof. Anibal Bez-Daz 2019 10:50 AM Tue Mar 29 80% EXCEL - Bonds Payable_ Instrucciones Example Excel Worksheet CONT 4002 Prof. Name of group members: $ Principal: Nominal interest rate: Effective interest rate: Periods: Annuity (interest payment): % $ Bond proceeds = Present Value: (Discount)/Premium $ $ AMORTIZATION SCHEDULE Interest Date Payment Interest Expense Amortization Book Value 1/1/2019 6/30/19 12/31/19 6/30/20 12/31/20 6/30/21 12/31/21 Total $ $ $ Journal Entries DR CR

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