Reference no: EM131790880

Assignment

Bristow Corp issued $500,000, 4%, 20 year bonds payable on March 1, 2015 with accrued interest. The bonds were dated January 1, 2015
pay interest annually on December 31st, and were issued to yield 4.5%.

Calculate the bond issue price in the colored cell to the right using the PV function in the Formulas tab.

Calculate the amount of accrued interest on these bonds at the date of issue.

Calculate total interest expense over the life of the bonds in the colored cell to the right.

Record the bond issue, credit interest expense for the amount of accrued interest:

Complete the two amortization tables below for this bond issue. When you are amortizing straight line and the bonds are issued between interest payment dates, you will amortize over the number of months remaining from the date of issue. The total columns at the bottom of these sheets are your built in check figure: the total of payments, interest expense, and amortized discount is the same between the two methods even though each may differ for any given year.

The process of amortizing using effective interest will not change when bonds are issued between interest payment dates.

These bonds are retired on June 30, 2025 at 101. There are no unamortized bond issue costs.

Calculate the carrying value of the bonds at the retirement date using effective interest amortization.

Record the bond retirement using effective interest amortization.

Calculate the carrying value of the bonds at the retirement date using straight line amortization.

Record the bond retirement using straight line amortization.

Attachment:- Bonds.rar