solution for some accounting problem AC312 - Bonds - Excel Project

Instructions:You must complete your work in Excel using formulas. Please submit your Excel file as an attachment to the link provided in the classroom.

Bond interest and discount amortization.

BU Curriculum Corporation issued $900,000 of 7% bonds on November 1, 2017, due on November 1, 2022. The interest is to be paid twice a year on May 1 and November 1. The bonds were sold to yield 9% effective annual interest.BU Curriculum Corporation closes its books annually on December 31.

Instructions

(a) Complete an amortization schedule for the above bond (for all periods) in a similar format as below.(Round all answers to the nearest dollar.)Use the effective-interest method.

Date

Credit

Cash

Debit

Interest Expense

Credit

Bond Discount

Carrying Amount of Bonds

Nov. 1, 2017

Use the PV formula in Excel; see posted bond excel sheet in the classroom

May 1, 2018

....continue schedule (use Excel)

(b) Prepare the journal entries for the following:

1. November 1, 2017 bond issue

2. Adjusting entry for December 31, 2017 (adjusting entry should cover 2 months)

3. May 1, 2018 entry

4. November 1, 2018 entry

5. Adjusting entry from December 31, 2018

(c) Compute the interest expense to be reported in the income statement for the year

ended December 31, 2017 and December 31, 2018.

(d)Complete amortization schedule for the above bond (for all periods) using the straight-line amortization method (entries are not required).

AC312 - Bonds - Excel Project Instructions: You must complete your work in Excel using formulas. Please submit your Excel file as an attachment to the link provided in the classroom. Bond interest and discount amortization. BU Curriculum Corporation issued $900,000 of 7% bonds on November 1, 2017, due on November 1, 2022. The interest is to be paid twice a year on May 1 and November 1. The bonds were sold to yield 9% effective annual interest. BU Curriculum Corporation closes its books annually on December 31. Instructions (a) Complete an amortization schedule for the above bond (for all periods) in a similar format as below. (Round all answers to the nearest dollar.) Use the effective-interest method. Date Credit Cash Debit Interest Expense Credit Bond Discount Carrying Amount of Bonds Use the PV formula in Excel; see posted bond excel sheet in the classroom Nov. 1, 2017 May 1, 2018 ....continue schedule (use Excel) (b) Prepare the journal entries for the following: 1. November 1, 2017 bond issue 2. Adjusting entry for December 31, 2017 (adjusting entry should cover 2 months) 3. May 1, 2018 entry 4. November 1, 2018 entry 5. Adjusting entry from December 31, 2018 (c) Compute the interest expense to be reported in the income statement for the year ended December 31, 2017 and December 31, 2018. (d)Complete an amortization schedule for the above bond (for all periods) using the straightline amortization method (entries are not required). Page 1