SOLUTIONS:

1 Present Value of the Principal:

¥ 500,000 x 0.37689
¥ 188,445

2 Present value of the interest payment :

¥ 22,500 x 12.46221
¥ 280,400

3 Issue Price :
¥ 188,445 + ¥ 280,400
¥ 468,845

PV of interest payments
(500.000 x 0.09)
45,000
45.000 / 2 payment per year
22,500
SOLUTIONS:
Date Description/account Debit Credit
1-Jan Cash 300,000
Bonds Payable 300,000

1-Jul Interest Expense 15,000

Cash 15,000

31-Dec Interest Expense 15,000

Interest Payable 15,000
Total 330,000 330,000
SOLUTIONS:
Date Description/account Debit Credit
1-Jan Cash 324,330
Bonds Payable 324,330

1-Jul Interest Expense 12,973

Bonds Payable 2,027
Cash 15,000

31-Dec Interest Expense 12,892

Bonds Payable 2,108
Interest Payable 15,000
Total 354,330 354,330
SOLUTIONS:
Date Description/account Debit Credit
1-Jan Cash 277,918
Bonds Payable 277,918

1-Jul Interest Expense 16,675

Bonds Payable 1,675
Cash 15,000

31-Dec Interest Expense 16,776

Bonds Payable 1,776
Interest Payable 15,000
Total 311,369 311,369
SOLUTIONS:
Date Description/account Debit Credit
1-May Cash 408,000
Bonds Payable 400,000
Interest expense 8,000

1-Jul Interest Expense 12,000

Cash 12,000

31-Dec Interest Expense 12,000

Interest Payable 12,000
Total 432,000 432,000