Accounting for Bonds

Sheet3 Sheet2 Sheet1 Paractice Questions Accounting for Bonds Use Straight Line Amortisation Method 1) A company issues $60,000 8% 3 year bonds at 100 2) A compnay issues $90,000 4% 4 year bonds at 99 Assume interest payments are made annually Show journals and yearly Income Statement and Balance Sheet extracts 1) Ref Description Dr Cr Yr 1 Cash Journals Bonds Payable Bond Interest Yr 2 Yr 3 Bond Payable Income Statement Interest Expense Balance Sheet End Yr Year 0 is the beginning of the bond 2) Bond Discount Yr 4 Bond Carrying Value Before repayment After repayment 3) Bond Premium 3) A company issues $40,000 9% 3 year bonds at 105 0.00 00000.00 00000.00 0.00 0000.00 0.00 0000.00 0.00 0000.00 0000.00 0.00 0000.00 0000.00 0.00 00000.00 00000.00 0000.00 0000.00 0000.00 0.00 0.00 0.00 0.00 00000.00 00000.00 00000.00 0.00 0.00 00000.00 00000.00 0.00 000.00 00000.00 0.00 0000.00 0.00 0000.00 0.00 000.00 0.00 000.00 0.00 0000.00 0000.00 0.00 000.00 000.00 0.00 0000.00 0000.00 0.00 000.00 000.00 0.00 0000.00 0000.00 0.00 000.00 000.00 0.00 00000.00 00000.00 0000.00 0000.00 0000.00 0000.00 0.00 0.00 0.00 0.00 0.00 0.00 00000.00 00000.00 00000.00 00000.00 00000.00 0.00 000.00 000.00 000.00 000.00 0.00 0.00 00000.00 00000.00 00000.00 00000.00 00000.00 0.00 0.00 00000.00 00000.00 0.00 0000.00 00000.00 0.00 0000.00 0.00 0000.00 0.00 000.00 0.00 000.00 0.00 0000.00 0000.00 0.00 000.00 000.00 0.00 0000.00 0000.00 0.00 000.00 0.00 000.00 0.00 00000.00 00000.00 0000.00 0000.00 0000.00 0.00 0.00 0.00 0.00 0.00 0.00 00000.00 00000.00 00000.00 00000.00 0.00 0000.00 0000.00 000.00 0.00 0.00 00000.00 00000.00 00000.00 00000.00 0.00