SOLUTION 1

Issuing Bonds Payable – semiannual interest payment

PV Single Sum of Principal Rp1,000,000 x PVF(7.5%, 10) = Rp1,000,000 x 0.48519393 = Rp485,193.93

PV Annuity of Interest (Rp1,000,000 x 6%) x PVIF(7.5%,10) = Rp60,000 x 6.86408096 = 411,844.86

PV of Bonds Rp897,038.79

Bonds discount = Rp1,000,000 – Rp897,038.79 = Rp102,961.21

Journal entries: Jan. 1, 2014 Cash Rp897,038.79

Bonds Payable Rp897,038.79

Amortization of Bonds Payable

SCHEDULE OF BONDS DISCOUNT AMORTIZATION

EIM-Semiannual Interest Payments

5 years, 12% Bonds sold to yield 15%

Date Cash Paid Interest Expense Discount Amort. Carrying Amount

1-Jan-14 Rp897,038.79

30-Jun-14 Rp60,000.00 Rp67,277.91 Rp7,277.91 Rp904,316.70

31-Dec-14 Rp60,000.00 Rp67,823.75 Rp7,823.75 Rp912,140.45

30-Jun-15 Rp60,000.00 Rp68,410.53 Rp8,410.53 Rp920,550.99

31-Dec-15 Rp60,000.00 Rp69,041.32 Rp9,041.32 Rp929,592.31

30-Jun-16 Rp60,000.00 Rp69,719.42 Rp9,719.42 Rp939,311.73

31-Dec-16 Rp60,000.00 Rp70,448.38 Rp10,448.38 Rp949,760.11

30-Jun-17 Rp60,000.00 Rp71,232.01 Rp11,232.01 Rp960,992.12

31-Dec-17 Rp60,000.00 Rp72,074.41 Rp12,074.41 Rp973,066.53

30-Jun-18 Rp60,000.00 Rp72,979.99 Rp12,979.99 Rp986,046.52

31-Dec-18 Rp60,000.00 Rp73,953.49 Rp13,953.49 Rp1,000,000.01

Journal: Jun. 30, 2014 Interest Expense Rp67,277.91

Cash Rp60,000.00

Bonds Payable 7,277.91

Dec. 31, 2014 Interest Expense Rp67,823.75

Cash Rp60,000.00

Bonds Payable 7,823.75

Bonds Issued between Interest Date

CA at January 1, 2014 Rp897,038.79

+/+ Partial Disc. Amortization (3/6 bulan) 3,638.96

CA at April 1, 2014 Rp900,677.75

Journal: Apr. 1, 2014 Cash Rp900,677.75

Bonds Payable Rp900,677.75

Apr. 1, 2014 Cash Rp30,000.00

Interest Expense Rp30,000.00

(Record accrued interest)

Jun. 1, 2014 Interest Expense Rp60,000.00

Cash Rp60,000.00

Interest Expense Rp3,638.96

Bonds Payable Rp3,638.96

Extinguishment of Bonds Payable

Jika ditebus pada 110

CA Bonds Dec. 31, 2015 Rp929,592.31

Cash Paid (Rp1,000,000 x 110%) 1,100,000.00

Loss on Extinguishment Rp170,407.69

Journal (asumsi sudah membuat jurnal bunga):

Dec. 31, 2015 Bonds Payable Rp929,592.31

Loss on Extinguishment 170,407.69

Cash Rp1,100,000.00

Jika ditebus pada 90

CA Bonds Dec. 31, 2015 Rp929,592.31

Cash Paid (Rp1,000,000 x 90%) 900,000.00

Gain on Extinguishment Rp29,592.31

Jika ditebus pada 31 Agustus 2015

CA at Jun. 30, 2015 Rp920,550.99

+/+ Partial Disc. Amortization (2/6 bulan) 3,013.77

CA at Aug 31, 2015 Rp923,564.76

CA Bonds Aug. 31, 2015 Rp923,564.76

Cash Paid (Rp1,000,000 x 95%) 950,000.00

Loss on Extinguishment Rp26,435.24

Journal: Aug. 31, 2015 Interest Expense Rp23,013.77

Bonds Payable Rp3,013.77

Cash 20,000.00

(Record accrued interest = Rp923,564.76 – Rp920,550.99)

Aug. 31, 2015 Bonds Payable Rp923,564.76

Loss on Extinguishment 26,435.24

Cash Rp950,000.00

SOLUTION 2

SOLUTION 3

PV Single Sum of Principal Rp2,000,000,000 x PVF(6%, 20) = Rp2,000,000,000 x 0.3118 = Rp623,600,000

PV Annuity of Interest (Rp2,000,000,000 x 5%) x PVIF(6%,20) = Rp100,000,000 x 11.4699 = 1,146,990,000

PV of Bonds Rp1,770,590,000

Bonds discount = Rp2,000,000,000 – Rp1,770,590,000 = Rp229,410,000

SCHEDULE OF BONDS DISCOUNT AMORTIZATION

EIM-Semiannual Interest Payments

10 years, 10% Bonds sold to yield 12%

Date Cash Paid Interest Expense Discount Amort. Carrying Amount

1-Feb-11 Rp1,770,590,000.00

1-Aug-11 Rp100,000,000.00 Rp106,235,400.00 Rp6,235,400.00 Rp1,776,825,400.00

1-Feb-12 Rp100,000,000.00 Rp106,609,524.00 Rp6,609,524.00 Rp1,783,434,924.00

1-Aug-12 Rp100,000,000.00 Rp107,006,095.44 Rp7,006,095.44 Rp1,790,441,019.44

1-Feb-13 Rp100,000,000.00 Rp107,426,461.17 Rp7,426,461.17 Rp1,797,867,480.61

1-Aug-13 Rp100,000,000.00 Rp107,872,048.84 Rp7,872,048.84 Rp1,805,739,529.44

Journal: Feb. 1, 2011 Cash Rp1,770,590,000.00

Bonds Payable Rp1,770,590,000.00

Aug. 1, 2011 Interest Expense Rp106,235,400.00

Bonds Payable Rp6,235,400.00

Cash 100,000,000.00

Dec. 31, 2011 Interest Expense Rp88,841,270.00

Bonds Payable Rp5,507,936.67

Interest Payable 83,333,333.33

(Record accrued interest 5/6 x Rp106,609,524)

Early Extinguishment

40,000 lembar ÷ 200,000 lembar = 20%

Jika ditebus pada 1 Agustus 2012

CA at Aug. 1, 2012 (20%xRp1,790,441,019.44) Rp358,088,203.90

Cash Paid (20% x Rp2,000,000,000 x 90%) 360,000,000.00

Loss on Extinguishment (Rp1,911,796.10)

Journal: Aug. 1, 2012 Bonds Payable Rp358,088,203.90

Loss on Extinguishment 1,911,796.10

Cash Rp360,000,000.00

(Asumsi sudah membuat jurnal bunga)