PT ABC issues bonds with a tenor of 10 years on January 1, 2021. The par value of the bonds is Rp. 1,500 per share with a total of 1,200 bonds issued. The coupon value of the bonds is 8%. Meanwhile, the yield on these bonds is 10%. Interest is paid every January 1 and July 1. The number of outstanding shares owned by the company is 5,000 shares. This year, PT ABC has a net profit of Rp 55,000,000.

REQUESTED:
a. Determine the selling price of the bond and record the sale.
b. Prepare the required amortization table and related journal
c. How does PT ABC present its bonds in the financial statements?
d. In August of the fifth year after the issuance of the bonds, PT ABC decided to withdraw 50% of the outstanding bonds in the market at a price of 86%. Make calculations and journals related to these transactions
e. If PT ABC's bonds can be converted into ordinary shares with the policy that every 10 bonds can be converted into 1 common share, what is the impact of this policy on the number of outstanding shares owned by PT ABC and the company's EPS?
f. If the bond coupon is revised to 12%, what are the answers to questions a and b?

Answer rating: 100% (QA)

Solution a Par value 180000000 Coupon 8 YieldMarket price 10 Terms 10 Paymentsyear 2 nperiods 20 Annuity 72000 Sales price 1575680 Discount 22431979 Date Journal entries Debit Credit 010120 cash 15756... View the full answer