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12 In class worksheet - how do you calculate

M12 In Class Worksheet Bonds Payable Worksheet 1 How do you calculate... Interest Payment Periods: Interest Payment Cash Received Discount: Discount Amortization Premium: Premium Amortization: Interest expense on a par value bond Interest Expnese on a discounted bond Interest Expesne on a premium bond 8,000 M12 In Class Worksheet Bond #1 Par Value Term Contract Interest Rate Market Interest Rate Issue Price 3 years 4% 4% 100 Calculate the Semi-annual interest Payment Journal Entry at Issuance: Journal for Semi-Annual Interest Payment Journal at Bond Retirement 150,000 Bond #2 Par Value Term Contract Interest Rate Market Interest Rate Issue Price 2 years 5% 7% 96 Calculate the Cash received at Issuance: Calculate the Discount Calculate the Discount Amortization Calculate the Interest Payment Calculate the Interest Expense Journal Entry at Issuance: Journal for Semi-Annual Interest Payment Journal at Bond Retirement 50,000 Bond #3 Par Value Term Contract Interest Rate Market Interest Rate Issue Price 15 years 10% 8% 104 Calculate the Cash received at Issuance: Calculate the Premium Calculate the Premium Amortization Calculate the Interest Payment Calculate the Interest Expense Journal Entry at Issuance: Journal for Semi-Annual Interest Payment Journal at Bond Retirement M12 In Class Worksheet Bond #4 has a par value of $100,000. The term is 10 years, the contract interest rate is 6% and the Issue price is 99. 1) Is this bond issued at par value, at a discount, or at a premium? 2) Is the market interest rate 6%, more than 6% or less than 6%? 3) Calculate the cash received at Issuance: 4) Calculate the Premium or Discount, if applicable: 5) Calculate the semi-annual Amortization if applicable: 6) Calculate the semi-annual Interest Payment 7) Calculate the semi-annual Interest Expense Bond #5 has a term of 8 years, a contract interest rate of 10%, and a par value of $30,000. It was issued for $34,000 cash. 1) Is this bond issued at par value, at a discount, or at a premium? 2) is the market interest rate 10%, more than 10% or less than 10%? 3) What is the issue price? 4) Calculate the Premium or Discount, if applicable: 5) Calculate the semi-annual Amortization if applicable: 6) Calculate the semi-annual Interest Payment 7) Calculate the semi-annual Interest Expense M12 In Class Worksheet Bond 64 has a par value of $100. The term is 3 years, the contract interest rate is 4% and the issue price is 94. 1) Is this bond issued at par value, at a discount, or at a premium? 2) Is the market interest rate 4%, more than 4% or less than 4%? 3) Calculate the Cash received at Issuance: 4) Calculate the Premium or Discount, if applicable: 5) Calculate the semi-annual Amortization if applicable: 6) Calculate the semi-annual Interest Payment 7) Calculate the semi-annual Interest Expense Journal Entry at Issuance: Journal for Semi-Annual Interest Payment Journal at Bond Retirement

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