intermediateaccountingdebtfinancing(编辑修改稿)

intermediateaccountingdebtfinancing(编辑修改稿)内容摘要：

. 31 Interest Expense 4,000 Interest Payable 4,000 (continues) 1229 Bonds Issued at Par on Interest Date Jan. 1 Bond Investment 100,000 Cash 100,000 Investor’s Books July 1 Cash 4,000 Interest Revenue 4,000 Dec. 31 Interest Receivable 4,000 Interest Revenue 4,000 1230 Bonds Issued at Discount on Interest Date Jan. 1 Cash 87,538 Discount on Bonds Payable 12,462 Bonds Payable 100,000 Issuer’s Books Jan. 1 Bond Investment 87,538 Cash 87,538 Investor’s Books 1231 Bonds Issued at Premium on Interest Date Jan. 1 Cash 107,106 Premium on Bonds Payable 7,106 Bonds Payable 100,000 Issuer’s Books Jan. 1 Bond Investment 107,106 Cash 107,106 Investor’s Books 1232 Bonds Issued at Par between Interest Date Jan. 1 Cash 101,333 Bonds Payable 100,000 Interest Payable 1,333 Issuer’s Books July 1 Interest Expense 2,667 Interest Payable 1,333 Cash 4,000 (continues) ($100,000 2/12) ($100,000 4/12) 1233 Bonds Issued at Par between Interest Date Jan. 1 Bond Investment 100,000 Interest Receivable 1,333 Cash 101,333 Investor’s Books July 1 Cash 4,000 Interest Receivable 1,333 Interest Revenue 2,667 1234 Bond Issuance Costs • The issuance of bonds normally involves bond issuance costs to the issuer for legal services, printing and engraving, taxes, and underwriting. • In Statement of Financial Accounting Concepts , the FASB stated that deferred charges such as bond issuance costs fail to meet the definition of assets. 1235 Accounting for Bond Interest • When bonds are issued at a premium or discount, an adjustment is made to periodic interest expense to reflect the effective interest rate incurred on the bonds. • This periodic adjustment is referred to as bond premium or discount amortization. 1236 StraightLine Method • The straightline method provides for the recognition of an equal amount of premium or discount amortization each period. • $100,000, 8%, 10year bonds were issued on January 1 at a $12,462 discount. Interest is payable on July 1 and December 31. (continues) 1237 StraightLine Method July 1 Interest Expense 4,623 Discount on Bonds Payable 623 Cash 4,000 Issuer’s Books Dec. 31 Interest Expense 4,623 Discount on Bonds Payable 623 Interest Payable 4,000 (continues) $12,462/120 6 mo. = $623 (rounded) 1238 StraightLine Method July 1 Cash 4,000 Bond Investment 623 Interest Revenue 4,623 Investor’s Books Dec. 31 Interest Receivable 4,000 Bond Investment 623 Interest Revenue 4,623 (continues) 1239 StraightLine Method July 1 Interest Expense 3,645 Premium on Bonds Payable 355 Cash 4,000 Issuer’s Books Dec. 31 Interest Expense 3,645 Premium on Bonds Payable 355 Interest Payable 4,000 (continues) $7,106/120 6 mo. = $355 (rounded) Assume the bonds were sold for $107,106. Reflects effective interest of 7% 1240 StraightLine Method July 1 Cash 4,000 Bond Investment 355 Interest Revenue 3,645 Investor’s Books Dec. 31 Interest Receivable 4,000 Bond Investment 355 Interest Revenue 3,645 1241 EffectiveInterest Method • The effectiveinterest method of amortization provides for a uniform interest rate based on a changing loan balance. • Provides for an increasing premium or discount amortization each period. 1242 EffectiveInterest Method Consider once again the $100,000, 8%, 10year bonds sold for $87,539, based on an effective interest rate of 10%. Bond balance (carrying value) at beginning of year $87,538 Effective rate per semiannual period 5% Stated rate per semiannual period 4% Interest amount based on carrying value and effective rate ($87,538 ) $ 4,377 Interest payment based on face value and stated rate ($100,00 ) 4,000 Discount amortization $ 377 1243 EffectiveInterest Method Assume the $100,000, 8%, 10year bonds is sold for $107,106, based on an effective interest rate of 7%. Bond balance (carrying value) at beginning of first period $107,106 Effective rate per semiannual period % Stated rate per semiannual period 4% Interest payment based on face value and stated rate ($100,00 ) 4,000 Interest amount based o。