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  • DewaY Homework8

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    DewaY_Homework8

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    10 views7 pages

    DewaY Homework8

    Uploaded by

    aslanluv

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as XLS, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    of 7

    Bond Issuance

    Cash

    $100,605
    Bonds Payable
    Premium on Bonds Payable

    Date

    Cash Interest
    ( 6.5%* face amount)
    1/1/2009
    6/30/2009
    12/31/2009
    6/30/2010
    12/31/2010
    6/30/2011
    12/31/2011
    6/30/2012
    12/31/2012
    6/30/2013
    12/31/2013

    Effective Interest
    ( 6%* outstanding amount)

    6,500.00
    6,500.00
    6,500.00
    6,500.00
    6,500.00
    6,500.00
    6,500.00
    6,500.00
    6,500.00
    6,500.00
    65,000.00

    6,036.29
    6,008.46
    5,978.97
    5,947.71
    5,914.57
    5,879.45
    5,842.21
    5,802.75
    5,760.91
    5,716.57
    58,887.90

    6500
    Premium on bond payable
    Cash

    463.71
    6,036.29

    6500
    Premium on bond payable
    Cash

    491.54
    6,008.46

    6500
    Premium on bond payable
    Cash

    521.03
    5,978.97

    6500
    Premium on bond payable
    Cash

    552.29
    5,947.71

    6500
    Premium on bond payable
    Cash

    585.43
    5,914.57

    6500
    Premium on bond payable
    Cash

    620.55
    5,879.45

    Interest Payments
    6/30/2009 Interest Expense

    12/31/2009 Interest Expense

    6/30/2010 Interest Expense

    12/31/2010 Interest Expense

    6/30/2011 Interest Expense

    12/31/2011 Interest Expense

    6/30/2012 Interest Expense

    6500

    12/31/2012 Interest Expense

    6/30/2013 Interest Expense

    12/31/2013 Interest Expense

    Premium on bond payable


    Cash

    657.79
    5,842.21

    6500
    Premium on bond payable
    Cash

    697.25
    5,802.75

    6500
    Premium on bond payable
    Cash

    739.09
    5,760.91

    6500
    Premium on bond payable
    Cash

    783.43
    5,716.57

    Bond Issue Costs


    Cash
    Debt Issue Costs

    $100,604.79
    $3,000.00
    Bonds Payable
    Premium on Bonds Payable

    $100,000
    $3,604.79

    Bond Issue Amortization (semiannual)


    Debt issue expense
    debt issue costs
    $3000 /6 =

    500

    500

    $100,000
    $604.79

    Increase in Balance

    (463.71)
    (491.54)
    (521.03)
    (552.29)
    (585.43)
    (620.55)
    (657.79)
    (697.25)
    (739.09)
    (783.43)
    (6,112.10)

    Outstanding Balance
    100604.79
    100,141.08
    99,649.54
    99,128.51
    98,576.23
    97,990.80
    97,370.25
    96,712.46
    96,015.21
    95,276.12
    94,492.69

    500

    June 30, 2010 Issuance

    $761150.96 * [ 11% /2 ] =

    $41,863.50

    $734,645.28 * [ 11% /2 ] =

    $40,405.49

    December 31, 2010 Issuance

    Date
    2/1/2011
    7/31/2011
    1/31/2012

    Cash Interest
    Effective Interest
    ( 6.5%* face amount) ( 6%* outstanding amount)
    10,000.00
    10,000.00

    19,167.04
    19,900.40

    20,000.00

    39,067.44

    Increase in Balance

    9,167.04
    9,900.40

    19,067.44

    Outstanding Balance
    239588
    248,755.04
    258,655.44

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