Essay About Bond Payable6,364,864Face Value And Bond Interest Expense222,770Cash211,2506.5

H&l Pines Journal Entries
H&L PINESJOURNAL ENTRIESEntryTransactionDebitCredit6.5% Bonds Payable1.Cash6,364,8646.5% Bond Payable6,364,864Face Value: $1,000/ bond × 6,500 bonds = $6,500,000n = 5 years × 2 payments/year = 10i = 7% ÷ 2 = 3.5%PV Principal: $6,500,000 × 0.70892 = $4,607,980PV Interest: ($6,500,000 × 6.5% × 6/12) × 8.31661 = $1,756,884PV Bond: $4,607,980 + $1,756,884 = $6,364,8642.Bond interest expense222,770Cash211,2506.5% Bond Payable11,520Bond interest expense: $6,364,864 × 7% × 6/12 = $222,770Bond interest payment: $6,500,000 × 6.5% × 6/12 = $211,250Amortization: $222,770 – $211,250 = $11,5203.Bond interest payable167,390Bond interest payable158,4386.5% Bond Payable8,942Bond interest expense: ($6,364,864 + $11,520) × 7% × 4.5/12 = $167,380Interest payment: $6,500,000 × 6.5% × 4.5/12 = $158,438Amortization: $167,380 – $158,438 = $8,9429.5% Bond Payable 4.Bond interest expense58,264Bond interest payable126,6679.5% Bond Payable5,069Cash190,000Bond interest expense: $4,369,790 × 8% × 2/12 = $58,264Interest payment: $4,000,000 × 9.5% × 2/12 = $63,333Amortization: $63,333 – $58,263 = $5,069Total cash paid: $126,667 + $63,333 = $190,000EntryTransactionDebitCredit5.Bond interest expense174,5899.5% Bond Payable15,411Cash190,000Bond interest expense: ($4,369,790 – $5,069) × 8% × 6/12 = $174,589Interest payment: $4,000,000 × 9.5% × 6/12 = $190,000Amortization: $190,000 – $174,589 = $15,4116.Bond interest expense39,1449.5% Bond payable3,606Cash42,750Bond int. exp: ($4,369,790 – $5,069 – $15,411) × 45% × 8% × 3/12 = $39,144Interest payment: $4,000,000 × 9.5% × 3/12 = $42,750Amortization: $42,750 – $39,144 = $3,6067. 9.5% Bond Payable1,953,584Loss on recall116,416Cash2,070,000Face Value: $4,000,000 × 45% = $1,800,000Cash paid for recall: $1,800,000 × 115% = $2,070,000CV: [($4,369,790 – $5,069 – $15,411) × 45%] – $3,606 = $1,953,584Loss: $2,070,000 – $1,953,584 = $116,4168. Bond interest expense63,7909.5% Bond payable5,877Bond interest payable69,667Bond int. exp.: ($4,369,790 – $5,069 – $15,411) × 55% × 8% × 4/12= $63,790Interest payment: $4,000,000 × 55% × 9.5% × 4/12 = $69,667Amortization: $69,667 – $63,790 = $5,877H&L PINES6.5% BOND PAYABLEApr. 1/11May 15/11Nov. 15/11Mar. 31/126 months4.5 monthsFYBBonds issuedInterest paymentFYEH&L PINES9.5% BOND PAYABLEApr. 1/11Jun. 1/11Dec. 1/11Feb. 29/12Mar. 31/124 months2 monthsLast payment dateFYEInterest paymentInterest paymentRecall 45%FYEH&L PINESSUPER-TAccounts PayableTaxes PayableBond Interest PayableO/B54,398O/B300,175O/B126,6679.5% Bond PayableO/B4,369,790H&L PINESCOMPLETED SUPER-TCashAccounts PayableTaxes PayableBond Interest Payable6,384,864(1)O/B54,398O/B300,175O/B126,667(2)211,250(3)158,438(4)190,000126,667(4)(5)190,000(8)69,667(6)42,750(7)2,070,0009.5% Bond Payable6.5% Bond PayableO/B4,369,790(1)6,363,8645,069(4)(2)11,52015,411(5)(3)8,9423,606(6)1,953,584(7)5,877(8)Bond Interest ExpenseLoss on Recall222,770(2)116,416(7)167,380(3)58,264(4)174,589(5)39,144(6)63,790(8)