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Ch 13 Accounting assignment
1. A)
Period Cash Interest Discount Unamortized Closing net
Interest Expense Amortization Amount liablility
(5%) (6%)
Opening balance 24,921 775,079
Mar 31, 20X4 20,000 23,252 3252 21,669 778,331
Sep 30, 20X4 20,000 23,350 3350 18,319 781,681
Mar 31, 20X5 20,000 23,450 3450 14,869 785,131
Sep 30, 20X5 20,000 23,554 3554 11,315 788,685
Mar 31, 20X6 20,000 23,661 3661 7654 792,346
Sep 30, 20X6 20,000 23,770 3770 3884 796,116
Mar 31, 20X7 20,000 23,883 3883 0 800,000
B)
Oct 1, 20X3 Cash 775,079
Discount on Bonds Payable 24,921
Bonds Payable 800,000
To record issuance of bonds at a discount