Payable. Liab Nhat date. “Wo hend ia foal vncondifionsl promise, maak onde sel | a Py 2 tht wom Ff! wong ol = delermmale \ Rye” date an = gerioke_intent payne \ = Geheted ok) ont the gr som i paid interest bearing nemincl ra of — 9 & “ [- (scver [seller Lieb oe ces he low 0 Bonds \ Rurch [Invechr = feet wm “al enh Te er\aiticl Gane TG CA option | Ts desig note tha bends « wy py Afreph Fil ele. nL Meas Foie Valve as A571 dl free \_ ws a Basi el | Booked Price Ne CA og Hs resack Value 7 Le Anikiel Mes?) Faicyelve — Ftranseetion Corts 7 Cae cdl of Ie peed pikes EI ‘4 wor Ase. Se ceria = " Oe ad ft pied sad ein Datsok es I" Le Nominal ae as. Eifecction Reale eae ks ald poke ae es ah rte Stale vs ed ote i, ealistic coi | C fleet Re te = as - @y E&) rere: Mt Valve 2 = ew! < Fae Valve \@©lustrative 1: Given the following d CASE 1: / Face Amount of the bonds Date of issue of bonds January 1, 2020 +2 a Nominal Rate anual \ 8% emragee \ 25a uapPerest aunelag and pecenver31 (377) CVE) Dave of Maturity Soniary 1, 2022 2 700 oem % BEEF 5 Gass 0 Prec Valve Priveipd SMS: Ink Paid = i 7 20000 X 3.4171 ¥ ‘Est oe round fF we = > vk ae yocoo x 3.4141\ PY Facters Ve A BN SNEScase 2: ( [\ p3co00i8 p a[ «aM = Face Amount of the bonds January 1, 700 Date of issue of bonds Nominal Rate effective Rate ery Discount ‘Semiannual interest JundQo and December 31. \. Sanuary 1, 2025 Rin © 3000cee < 0.6756 = 292680 4/F I pe) > “saggy 7 GEO ot = qeoco X% 8.104Eonar case 3: Face Amount 6,000,000 Annual Installment every December 31 2'000,500> Date of Issue January 1, 2020 NR payable annually every December 31 C12 Effective Interest Rate Tin (at etal > 4 F2oqsO+ 2720000 K 0.8772 cemnber 31, gB22 oo Soe + Aroce Decent “FOU eco coo «+ fgo000 * ZB CO KK we 2022 20202 000 + Ztoer = Za}ooee % OatInitial Whas a Prve %~ phe & (svane # Deke of Glo Des 3] at Iv fee (nt \ (nitiel Nieas Fair valve Games Pree ear Vale ct foowed ek ~ ~ Armor sffrere A, dlifrs2e ar a 1 N fins foods ES he s for 3frrarkized, Costs Cbs Nleas (ox Fai Vales Option) | be Btfecfive [cberesk Nietbod Seemann (| | [ck Pod = Face x Newindl Pate \L the a Exp = = Ch seg, Ke Bikec die Rote, CED ~ A ae bb the ke G Brock Coss gem Sp ey | tte A BsSym *2 = te periods case 4: i Face Amount of the bonds J 3,000,000 (ck Pad = 30037, Date of issue of bonds January 1, 2020 ED prea) Date of sole of bonds [_bseniiaee Seas anrnall Nominal Rate nos | OMY iH « Erctve fate ames GRY Piscounk Semiannval interest danny 4 andy 1 Sg Date of Maturity January 1, 2025 I. PY Vifeore Pan e000? K 0.075 h}ee 2aSAe (ot 00d p< B.NOFY > vale 20 BAB\_ A hfs . Te Int Pad = Zooceed * ah x Yo -se dise x 2136 | | Exp = 201 KH] xe = S513 om = \> py -» (oitioh Meas Proceeds ae Cat & V+ |b d/tleer0 \G 2466919 + ds00d \ 2ASU TB + (COG \ a 236641 eal ZIeet —Bonds Pyle ww» Soks Meas ye xX designed @ tH hwo: | a “peti eee op a 7 arnen'T \e 7 designated Q@ AV (I i Voloe ig are -) | |e x disso _ pre \, == SSI \ ck Paid \. (ok Bi ane trp > Face * Nominal Ratt Baw Tue inertase 2 lo SE Geeaoe 7 iD2% bonds ne (On December 31, 2021, the fair value of the bonds is determined to@@P 1,064,6 fo market and interest factors. — [2qe0 a. 1,000,000 © b. 1,077, ¢. 500,000 4. 538,600 @. 120,0005 b. 100,000 c. 107,720 d. 129,264 & |occoes * = zone = Int Erp — 4. What is the carrying amount of the bonds payable on December 31, 2021? b. 1,077,200 c. 1,000,000 4. i,06%,520ema es Bends Com pam dice (|v Saret pe Face = Oh = he | \ © Gecbect/ = ere ectny ends Pay ja = UA ekors Wafer, | ( CA (as anes vse Pabicemery price Te = carnal 4 \ a ~ i al P/L eo Gra re Premen wae TeER Bale 2 Hominal Pao 3 yeecs for similar type of securities was at(12¥5jon the date OT'ssue, The bonds will mature on Décember 31, 2028, Interests are being paid annually every Decem — REQUIRED: a 1. Compute for the total proceeds from the bond issuan&_-51@3O 2: Prepare an amortization table 3. Assuming the bonds are retired at maturity date, prepare the necessary journal entry. a aseuni the bonds are retired on October 1, 2027, prepare the necessary journal entry. CReé Pica 7 ) SS OOS K OFS I ine (jooee oo2x 10°) ecco e Dido YN ififasre 4519630 Bete Ink Tad (ok Erg mart CR Game BRS tel =F 7 geese . Bel hie [cose IN23S@ | 4235 eaitay | ( (2x fne + (2fst/r2t (eecee IST B - |sq4se Veal Hay ~ hk e bu ler FeSaG \zfifrex tooo °° \FBSF — [FBSAL_— tleooe 880 aaa bea x GER -EsD) Pan Ce Seale fetal myn Gta— West = = ‘a ae 4) f pe Int Exp jorn x foe. AES CA, of = let tad = eres ace — Vf [roas / & qaei qae + Waste! a o(Gse aed yileor + of! fae) 7 Bends fey [psoo ocd , on 2B ¢ Sa poe. - ‘= ae * 28s = qyeo 08D : pail pyosilust Cees Fe 05> Q78\ SeE <_ 9900 080 prea cmeclestas rene Vor Mee