Stated value of bond $ 400,000.

00
Selling price of bond $ 351,040.00 Student ID : 2001624140 SOAL 1
Name : Slamet Hariyadi Titania Co. sells $600,000 o
Class : LEFA pay interest on
December 1 and June 1. Th
Stated rate 8% The bonds yield 10%, sellin
buys back $300,000 worth
Effective rate 10% interest). Give entries throu
Interest dollar.)
Year Interest Payment Expense Amortization Carrying Amount of Bonds Instructions
Prepare all of the relevant j
01 Jun 13 351,040 the date indicated. Amortiz
01 Jan 14 32,000 35,104 3,104 354,144 and at year-end. (Assume t
01 Jun 15 32,000 35,414 3,414 357,558
01 Jun 16 32,000 35,756 3,756 361,314
01 Jun 17 32,000 36,131 4,131 365,446
01 Jun 18 32,000 36,545 4,545 369,990
01 Jun 19 32,000 36,999 4,999 374,989
01 Jun 20 32,000 37,499 5,499 380,488
01 Jun 21 32,000 38,049 6,049 386,537
01 Jun 22 32,000 38,654 6,654 393,191
01 Jun 22 32,000 38,809 6,809 400,000
320,000 368,960 48,960
Amortization 48,960.00

01 Jun 13 Cash / Bank 351,040

Bond Payable 351,040

Bond Interest Expense 35,104

Bond Payable 3,104
Cash / Bank 32,000

Bond Interest Expense 2,951

Bond Payable (285)
Interest Payable 2,667

Bond Interest Expense 14,756

Bond Payable (1,423)
Interest Payable 2,667
Cash / Bank 32,000

Bond Interest Expense -

Bond Payable -
Cash / Bank -

$ 178,779
$ -
$ 178,779
Bond Payable $ 178,779
Loss on buyback of bond $ (178,779)
Cash / Bank $ -
SOAL 1
Titania Co. sells $600,000 of 12% bonds on June 1, 2010. The bonds
pay interest on
December 1 and June 1. The due date of the bonds is June 1, 2014.
The bonds yield 10%, selling for $638,780. On October 1, 2011, Titania
buys back $300,000 worth of bonds for $315,000 (include accrued
interest). Give entries through October 1, 2012. (Round to the nearest
dollar.)
Instructions
Prepare all of the relevant journal entries from the time of sale until
the date indicated. Amortize premium or discount on interest dates
and at year-end. (Assume that no reversing entries were made.)
Student ID : 2001624140 Outstanding note
Name : Slamet Hariyadi Maturity
Class : LEFA Stated rate
Market rate

SOAL 2
Freeze Corporation is having financial difficulty and therefore has asked a. Journal entry :
Manhattan National Bank to restructure its $3 million note outstanding. The
present note has 3 years remaining and pays a current rate of interest of 10%. Note Payable
The present market rate for a loan of this nature is 12%. The note was issued at Share capital - ordina
its face value. Gain on extinguishme
Instructions
Prepare below are three independent situations. Prepare the journal entry that
Halvor would make for each of these restructurings. b. Journal entry:
(a) Manhattan National Bank agrees to take an equity interest in Halvor by Note Payable
accepting ordinary shares valued at $2,200,000 in exchange for relinquishment
its claim on this note. The ordinary shares have a par value of $1,000,000. Land
Gain on dispotition o
(b)Manhattan National Bank agrees to accept land in exchange for relinquishing Gain on extinguishme
its claim on this note. The land has a book value of $1,950,000 and a fair value of
$2,400,000.
c. Before modification:
(c)Manhattan National Bank agrees to modify the terms of the note, indicating Maturity value of note
that Halvor does not have to pay interest on the note over the3-year period. PV of $3,000,000
PV of $300,000
Carrying value of note
Unamortized discount

After modification :
Maturity value of note
PV of $3,000,000
Unarmortized discount

No journal entry needed

Disclosure:
A-10%-interest- note pa
-interest bearing note. T
$ 2,855,890 to present market ra
1 $ 300,000 $ 342,707 $ 42,707 $ 2,898,597
2 $ 300,000 $ 347,832 $ 47,832 $ 2,946,429
3 $ 300,000 $ 353,571 $ 53,571 $ 3,000,000

$ 2,135,341
1 $ 256,240.89 $ 2,391,582
2 $ 286,989.80 $ 2,678,571
3 $ 321,428.57 $ 3,000,000
Outstanding note $ 3,000,000
3 years
Stated rate 10%
Market rate 12%

Journal entry :
Note Payable $ 3,000,000 $ 2,400,000
Share capital - ordinary $ 1,000,000 $ 1,950,000
Gain on extinguishment of debt $ 2,000,000 $ 450,000

Journal entry:
Note Payable $ 3,000,000
$ 1,950,000
Gain on dispotition of land $ 450,000
Gain on extinguishment of debt $ 600,000

Before modification:
Maturity value of note $ 3,000,000
PV of $3,000,000 $ 2,135,341
PV of $300,000 $ 720,549
Carrying value of note $ 2,855,890
Unamortized discount $ 144,110

After modification :
Maturity value of note $ 3,000,000
PV of $3,000,000 $ 2,135,341
Unarmortized discount $ 864,659

No journal entry needed.

Disclosure:
A-10%-interest- note payable of Freeze Corporation has been changed into a-zero
-interest bearing note. The note payable as of xx xxxx xxxx is $2,135,341 according
to present market rate on 12%.
 Student ID : 2001624140 Stated valeu of bond
Name : Slamet Hariyadi
Class : LEFA Selling price of bond
Stated rate
Market rate
SOAL 3
On June 1, 2009, Everly Bottle Company sold $400,000 in long-term bonds
for $351,040. The bonds will mature in 10 years and have a stated interest Date
rate of 8% and a yield rate of 10%. The bonds pay interest annually on May a.
31 of each year. The bonds are to be accounted for under the effective- 01 Jun 09
interest method.
01 Jun 10
Instructions 01 Jun 11
(a)Construct a bond amortization table for this problem to indicate the 01 Jun 12
amount of interest expense and discount amortization at each May 31.
Include only the first four years. Make sure all columns and rows are 01 Jun 13
properly labeled. (Round to the nearest dollar.) 01 Jun 14
(b)The sales price of $351,040 was determined from present value tables. 01 Jun 15
Specifically explain how one would determine the price using present 01 Jun 16
value tables. 01 Jun 17
(c)Assuming that interest and discount amortization are recorded each 01 Jun 18
May 31, prepare the adjusting entry to be made on December 31, 2011. 01 Jun 19
(Round to the nearest dollar.)

b. Maturity value of bond payable

Present value of $400,000 at 10 per
Present value of$32,000 at 10 perio

Discount Amoritzed

c. 31 Dec 11

Tabel PVF (n, i) Tabel PVF-OA (n, i)

… 8% 9% 10% …
1 … 0.926 0.917 0.909 … 1
2 … 0.857 0.842 0.826 … 2
3 … 0.794 0.772 0.751 … 3
4 … 0.735 0.708 0.683 … 4
5 … 0.681 0.650 0.621 … 5
6 … 0.630 0.596 0.564 … 6
7 … 0.583 0.547 0.513 … 7
8 … 0.540 0.502 0.467 … 8
9 … 0.500 0.460 0.424 … 9
10 … 0.463 0.422 0.386 … 10
… … … … … … …
 tated valeu of bond $ 400,000
elling price of bond $ 351,040
8.00%
10.00%

Interest Interest Carrying Amount

Amortization
Payment Expense of Bonds
351,040
32,000 35,104 3,104 354,144
32,000 35,414 3,414 357,558
32,000 35,756 3,756 361,314
32,000 36,131 4,131 365,446
32,000 36,545 4,545 369,990
32,000 36,999 4,999 374,989
32,000 37,499 5,499 380,488
32,000 38,049 6,049 386,537
32,000 38,654 6,654 393,191
32,000 39,319 7,319 400,510
320,000 369,470 49,470 $ (510) << PV kurang akurat, terjadi selisih

Maturity value of bond payable $ 400,000

Present value of $400,000 at 10 period 0.386 $ 154,217
Present value of$32,000 at 10 period 6.145 $ 196,626
$ 350,843
Discount Amoritzed $ 49,157

Bond Interest Expense $ 17,878

Bond payable $ 1,878
Interest payable $ 16,000

abel PVF-OA (n, i)

… 8% 9% 10% …
… 0.926 0.917 0.909 …
… 1.783 1.759 1.736 …
… 2.577 2.531 2.487 …
… 3.312 3.240 3.170 …
… 3.993 3.890 3.791 …
… 4.623 4.486 4.355 …
… 5.206 5.033 4.868 …
… 5.747 5.535 5.335 …
… 6.247 5.995 5.759 …
… 6.710 6.418 6.145 …
… … … … …
 Interest Interest Carrying Amount of
Date Amortization
Payment Expense Bonds
01 Jun 09 350,843
01 Jun 10 32,000 35,084 3,084 353,928
01 Jun 11 32,000 35,393 3,393 357,321
01 Jun 12 32,000 35,732 3,732 361,053
01 Jun 13 32,000 36,105 4,105 365,158
01 Jun 14 32,000 36,516 4,516 369,674
01 Jun 15 32,000 36,967 4,967 374,641
01 Jun 16 32,000 37,464 5,464 380,105
01 Jun 17 32,000 38,011 6,011 386,116
01 Jun 18 32,000 38,612 6,612 392,727
01 Jun 19 32,000 39,273 7,273 400,000
320,000 369,157 49,157 $ -
Student ID : 2001624140
Name : Slamet Hariyadi
Class : LEFA

SOAL 4
On April 30, 2002, Company issued 8% bonds with a par value of $900,000 due in a.
20 years. They were issued at 82.8 to yield 10% and were callable at 102 at any
date after April 30, 2010. Because of lower interest rates and a significant change
in the company's credit rating, it was decided to call the entries issue on April 30,
2011, and to issue new bonds. New 6% bonds were sold in the amount of
$1,200,000 at 112.5 to yield 5%; they mature in 20 years. Interest payment dates
are October 31 and April 30 for both and new bonds.
30 Apr 11
Instructions
(a)Prepare journal entries to record the retirement of the old issue and the sale
of the new issue on April 30, 2011. Unamortized discount is $118,470.

(b)Prepare the entry required on October 31, 2011, to record the payment of the
first 6 months' interest and the amortization of premium on the bonds.

30 Apr 11

b.

Date

30 Apr 11
31 Oct 11
30 Apr 12
31 Oct 12

31 Oct 11
Maturity 20 years
Rate 8%
Stated value of bond $ 900,000

Stated value of bond $ 900,000

Unamortized discount $ 118,470
Carrying amount as of Apr
30th, 2011 $ 781,530

Bond Payable $ 781,530

Loss on retirement bond $ 136,470
Cash / Bank $ 918,000

Stated value of new bond $ 1,200,000

Maturity 20 years
Stated rate 6%
Market rate 5%
Selling price of new bond 112.5 $ 1,350,000

Cash / Bank $ 1,350,000

Bond Payable $ 1,350,000

Interest Carrying Amount

Interest Payment Amortization
Expense of Bonds

1,350,000
36,000 33,750 2,250 1,347,750
36,000 33,694 2,306 1,345,444
… … … …

Bond Interest Expense $ 33,750

Bond Payable $ 2,250
Cash / Bank $ 36,000