SOAL ASISTENSI AKUNTANSI KEUANGAN 2

NON CURRENT LIABILITIES

Dosen: Ibu Dini Marina | Asdos: Fabiola Kristi | Pertemuan 1 | Page 1

UNIVERSITAS INDONESIA

FAKULTAS EKONOMI DEPARTEMEN AKUNTANSI

PROBLEM 1

Issuing Bonds Payable

ABC Co. issued Rp1,000,000 of 12%. 5 year bonds dated January 1, 2014 and mature at

December 31, 2018. Calculate the PV and bonds premium/discount and also prepare the journal

entries of bond issuance if market yield is 15% and the interest is paid semiannually on June 30

and December 31.

Amortization of Bonds Payable

Prepare schedule of amortization using effective interest method for 3 years and journal entries of

interest payment for year 2014.

Bonds Issued between Interest Date

Instead of issuing its bonds on January 1, 2014, ABC Co. issued its Rp1,000,000 of 12%, 5 year

bonds on April 1, 2014. Prepare the journal entries of bonds issuance and interest payment for

year 2014.

Extinguishment of Bonds Payable

ABC Co. extinguished its bond on December 31, 2015 at 110. Prepare the journal entries for the

extinguishment. What if ABC extinguished it at 90? What if ABC Co. extinguished its bonds on

31 August 2015 at 95?

PROBLEM 2

Presented below is the transaction between BBB Corp. and CCC Corp.:

1. Dec. 31, 2011 BBB Corp. invest in CCC Corp. 3 year note, 10%, in the amount of $330,000.

The interest is paid annually on December 31. Market rate 12%.

2. Dec. 31, 2012 Interest on the bonds is paid.

3. Dec. 31, 2013 CCC Corp. is in trouble, BBB Corp. agrees to forgive the accrued interest,

$30,000 of the principal, and to extend the maturity date to December 31, 2015. BBB also

agree to reduce the interest into 8%.

4. Dec. 31, 2015 CCC Corp. is facing another financial problem and decided to give their

machine as the settlement of the debt. The machine has a book value $700,000 and

accumulated depreciation $500,000. The fair value of the machine on the date of settlement is

$250,000. (Note: BBB Corp. forgive the accrued interest in 2015).

Instruction:

1. Prepare the amortization schedule of the bonds

2. Prepare the journal entries for the transaction above on the books of BBB Corp. and CCC

Corp.

SOAL ASISTENSI AKUNTANSI KEUANGAN 2

NON CURRENT LIABILITIES

Dosen: Ibu Dini Marina | Asdos: Fabiola Kristi | Pertemuan 1 | Page 2

UNIVERSITAS INDONESIA

FAKULTAS EKONOMI DEPARTEMEN AKUNTANSI

PROBLEM 3 (Mid Exam 2011/2012)

On February 1, 2011 PT AAA sold 200,000 sheet of 10 year maturity bond with par value of

Rp10,000/sheet. The bonds have 10% nominal interest rate and the interest rate at the time of

bond issuance is 12%. Interest is paid semiannually on Feb. 1 and Aug. 1. PT AAA amortize

premium/discount arising from the issuance of bonds by using effective interest method.

Ordinary annuity 20 of Rp1 at 6% 11.4699

Present Value of Rp1 at 6%, 20 periods 0.3118

Ordinary annuity 10 of Rp1 at 12% 5.6502

Present Value of Rp1 at 12%, 10 periods 0.3220

Instruction:

1. Calculate the selling price of the bonds of PT AAA and make schedule amortization for the

first 3 years.

2. Make the necessary journals in 2011 to record issuance transactions, payment of interest and

an adjusting entry on December 31, 2011.

3. If at the date of August 1, 2012, PT AAA bought back 40,000 sheet of bonds issued on

February 1, 2011. Prepare the journal entries to record the transaction if the company bought

it for 90.

Homework

1. On July 1, 2013, XYZ Co. issued 1,000 of its 5%p.a, $1,000 bonds at 99 plus accrued interest.

The bonds are dated April 1, 2013 and mature on April 1, 2023. Interest is payable

semiannually on April 1 and October 1. What amount did XYZ receive from the bond

issuance?

a. $965,000 b. $1,015,000 c.$1,002,500 d. $990,000

2. Edward Co. is indebted to Charlie under a $500,000, 12%, three-year note dated December

31, 2013. Because of Edward’s financial difficulties developing in 2015, Edward owed

accrued interest of $60,000 on the note at December 31,2015. Under a debt settlement, on

December 31, 2015, Charlie agreed to settle the note and accrued interest for a tract of land

having fair value of $450,000. Edward’s acquisition cost of the land is $380,000. Ignoring

income taxes, on its 2015 income statement Edward should report as a result of the debt

settlement:

Gain on disposal Extinguishment Gain

a. $70,000 $110,000

b. $70,000 $88,000

c. $110,000 $0

d. $158,000 $110,000