ACG $3113($Intermediate II$)-$ Comprehensive Bond Project

YOU MUST USE A FORMULA OR CELL REFERNCE WHERE POSSIBLE

PRINT out $2$ copies of your spreadsheet: one with the answers to the problem and another with all of your formulas. You must turn in both copies to receive credit.

Use the reference sheet "Templates for Time Value of Money" to create in excel a well$-$labeled amortization schedules and prepare the requested journal entries.

You can discuss this project with your classmates, but you must prepare your own spreadsheet. Please compute the initial present value of the Bond payable in excel $($via functions$)$ and also by hand using tables.

Caprio Inc. sells $$500,000$ of $10\%$ bonds on June $1,2015.$ The bonds pay interest on December $1$ and June $1.$ The due date of the bonds is June $1,2020.$ The bonds yield $8\%.$ On October $1,2016,$ Caprio buys back $$200,000($face value$)$ of bonds for $$210,000$ in cash $($not including accrued interest which was paid separately $-$ also in cash$).$ Provide the following:

a$.$ The present value of the bond payable is $

on June $1,2015.$

Round to the nearest dollar.

b$.$ Prepare a well$-$labeled schedule $($with debits$/$credits shown$)$ for the journal entries through the life of the Bond.

c$.$ Give all journal entries for:

$*6/1/15$

$-12/1/15$

$12/31/15$

$*6/1/16$

$10/1/16$ Update

$10/1/16$ accrued interest payment

$10/1/16$ redemption