財(cái)務(wù)會(huì)計(jì)概念與應(yīng)用英文版lectu(3)-資料下載頁
2025-01-06 21:28本頁面
【正文】 ds. . . . . . . . . . . . . . . . 8,114 Bonds Payable . . . . . . . . . . . . . . . . . . . 100,000 24 StraightLine Amortization ? The discount or premium needs to be amortized over the life of the bond so the value of the bond is equal to the face value at maturity. ? Straightline amortization – Divide the discount or premium by the number of interest periods and recognize that amount as extra interest expense (for discounts) or less interest expense (for premiums). 25 StraightLine Amortization ? Bonds issued at a discount: ? The same entry would be made for each interest payment. ? A similar entry would be made to amortize a premium, but the premium would be debited and interest expense would be reduced. Discount . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7,360 Number of semiannual periods . . . . . . . . . . 247。 10 736 Payment of semiannual interest: Interest Expense. . . . . . . . . . . . . . . . . . . . . . . 5,736 Discount on Bonds . . . . . . . . . . . . . . . . . 736 Cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,000 26 Effective Interest Amortization ? Amortizes a varying amount of discount or premium each period. ? This amount is the difference between the interest actually incurred and the cash actually paid (like the amortization schedule for the mortgage). ? Interest actually incurred is the bond carrying value multiplied by the effective interest rate. 27 Effective Interest Amortization ? For Bond issued at premium: Interest Incurred Amortization of Premium Bond Carrying (Bond Carrying Value X (Interest Incurred – Value Payment Effective Interest Rate) Payment) 108,114 1 5,000 4,325 675 107,439 2 5,000 4,298 702 106,737 3 5,000 4,269 731 106,006 4 5,000 4,240 760 105,246 5 5,000 4,210 790 104,456 4th Payment of semiannual interest: Interest Expense. . . . . . . . . . . . . . . . . . . . . . . 4,240 Premium on Bonds . . . . . . . . . . . . . . . . . . . . 760 Cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,000 28 Retirement of Bonds with a Discount or a Premium ? Retirement at maturity is the same as at face value because the discount or premium is amortized to zero at maturity. ? Sayer Co. desires to retire its 5year bonds issued at a premium after 2 years (4 payments). The bonds are retired at 105: Retirement of Sayer Co. bond at 105: Bonds Payable . . . . . . . . . . . . . . . . . . . . . . .100,000 Premium on Bonds . . . . . . . . . . . . . . . . . . . 5,246 Gain on Bond Retirement . . . . . . . . . . . 246 Cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . 105,00
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