Respuesta :
Answer:
(a) December 31, 2021.
Bond Interest Expense 156,000
Premium on Bonds Payable 4,000
($80,000 X 1/20)
Cash ($4,000,000 X 8% X 6/12) 160,000
(b) January 1, 2022
Bonds Payable 400,000
Premium on Bonds Payable 6,400
Common Stock 320,000
[8 X $100 X ($400,000/$1,000)]
Paid-in Capital in Excess of Par 86,400
Total premium
($4,000,000 X .02) $80,000
Premium amortized
($80,000 X 2/10) 16,000
Balance $64,000
Bonds converted
($400,000 ÷ $4,000,000) 10%
Related premium
($64,000 X 10%) 6,400
(c) March 31, 2022
Bond Interest Expense 7,800
Premium on Bonds Payable 200
($6,400 ÷ 8 years) X 3/12
Bond Interest Payable 8,000
($400,000 X 8% X 3/12)
Bonds Payable 400,000
Premium on Bonds Payable 6,200
Common Stock 320,000
Paid-in Capital in Excess of Par 86,200
Premium as of January 1, 2022
for $400,000 of bonds $6,400
$6,400 ÷ 8 years remaining
x 3/12 (200)
Premium as of March 31, 2022
for $400,000 of bonds $6,200
(d) June 30, 2022
Bond Interest Expense 124,800
Premium on Bonds Payable 3,200
Bond Interest Payable 8,000
($400,000 X 8% X 1/4)***
Cash 136,000*
[Premium to be amortized:
($80,000 X 80%) X 1/20 = $3,200, or
$51,200** ÷ 16 (remaining interest and
amortization periods) = $3,200]
***Total to be paid: ($3,200,000 X 8% ÷ 2) + $8,000 = $136,000
***Original premium $80,000
2020 amortization (8,000)
2021 amortization (8,000)
Jan. 1, 2022 write-off (6,400)
Mar. 31, 2022 amortization (200)
Mar. 31, 2022 write-off (6,200)
$51,200
***Assumes interest accrued on March 31. If not, debit Bond Interest
Expense for $132,800.
