Reference no: EM132761242
Questions -
Q1. On January 1, 2019, PT ACBD issued bonds maturing in 5 years with 10 percent interest payable semi-annually (6 months). Bonds are issued at a discount because the market interest rate is 12 percent.
Requested -
1. Calculate how much the bond will be worth when it is issued?
2. Keep a journal on 1 January 2019; 1 Jul 2019; 31 December 2019; and at the time of repayment.
3. Make a complete amortization table if the amortization is straight line
Q2. January 1, 2019 PT ACBD issued a 5-year bond amounting to IDR 5 million, 10 percent interest that is paid semi-annually (every 6 months). Bonds are issued at a premium because the market interest rate is 8 percent.
Requested -
1. Calculate how much the bond will be worth when it is issued?
2. Keep a journal on 1 January 2019; 1 Jul 2019; 31 December 2019; and at the time of repayment.
3. Create a complete amortization table if the amortization is straight line.