最新发行债券的三种方式PPT课件.ppt

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1、Bonds Medium-and large-sized company often choose to borrow cash by issuing bonds. A bond issue divides a large liability into many smaller liabilities Bonds obligate the issuing company to repay a stated amount at a specified maturity date and periodic interest between the issue date and maturity.I

2、ssue dateMaturity dateface amount + interestFace amount stated rateRecording bonds issuance Illustration 9-2 P375 PV of face amount: Face amount=$700,000 n=23=6 semiannual periods i=14%(6/12)=7% PV=$700,0000.66634=$466,438 Price=$200,195+$466,438=$666,633Recording bonds issuance Illustration 9-2 P37

3、5 On Jan. 1, 2011, issued the bonds: Issuer: Dr. Cash 666,633 Discount on bonds payable 33,367 Cr. Bonds payable 700,000 The difference between the effective interest and the interest paid increases the existing liability Effective interest=market rateoutstanding balance Recording bonds issuanceIllu

4、stration 9-2 P375On June 30, 2011, paid the interest: Interest expense =$666,63314%(6/12)=$46,664 Interest actually paid=Face amount Stated rate =$700,00012%(6/12)=$42,000 Dr. Interest expense 46,664 Cr. Cash 42,000 Discount on bonds payable 4,664 On Dec. 31, 2011the outstanding balance =$666,633+$4

5、,664=671297Recording bonds issuanceIllustration 9-2 P375 On Dec. 31, 2011, paid the interest: Interest expense =$671,29714%(6/12)=$46,991 Interest actually paid =$700,00012%(6/12)=$42,000 Dr. Interest expense 46,991 Cr. Cash 42,000 Discount on bonds payable 4,991 Recording bonds issuanceIllustration

6、 9-2 P375 On June 30 2012, Dec. 31 2012, June 30 2013 , make the same journal entry to record the interest payments: On Dec. 31, 2013 bonds were mature: Interest expense =$693,45614%(6/12)=$48,544 Dr. Interest expense 48,544 Cr. Cash 42,000 Discount on bonds payable 6,544 Dr. Bonds payable 700,000 C

7、r. Cash 700,000Recording bonds issuanceBonds issued at a premium Issuing price: Price=PV of interest + PV of face amount Illustration 9-3 P378 PV of interest: Interest payment =$700,00012%(6/12)=$42,000 n=23=6 semiannual periods i=10%(6/12)=5% PV of interest=$42,0005.07569=$213,179Recording bonds is

8、suanceIllustration 9-3 P378 PV of face amount: Face amount=$700,000 n=23=6 semiannual periods i=10%(6/12)=5% PV of face amount =$700,0000.74622=$522,354Recording bonds issuanceIllustration 9-3 P378 Price of the bonds =PV of interest + PV of face amount =$213,179+$522,354=$735,533 On Jan. 1, 2011, is

9、sued the bonds: Dr. Cash 735,533 Cr. Bonds payable 700,000 Premium on bonds payable 35,533Recording bonds issuanceIllustration 9-3 P378 On June 30, 2011, paid the interest: Interest expense =$735,53310%(6/12)=$36,777 Interest actually paid =$700,00012%(6/12)=$42,000 Dr. Interest expense 36,777 Premi

10、um on bonds payable 5,223 Cr. Cash 42,000Recording bonds issuanceIllustration 9-3 P378 On June 30 2012, Dec. 312012, June 30 2013, make the same journal entry to record the interest payments: On Dec. 31, 2013, bonds were mature: Interest expense =$70667110%(6/12)=$35,329 Interest actually paid =$700

11、,00012%(6/12)=$42,000 Dr. Interest expense 35,329 Premium on bonds payable 6,671 Cr. Cash 42,000 Dr. Bonds payable 700,000 Cr. Cash 700,000 A zero-coupon bonds pay no interest. It offers a return in the form of a “deep discount”from the face amount The present value of $2,230,discounted at 2% for 20

12、years,is $1,501 Graphic 9-5 P378Zero-coupon bondsBetween interest dates Any interest that has accrued since the last interest date must be recorded by an adjusting ebtry prior to preparing fincial statements Example P380 October 31 Dr. Interest expense $31,327 Cr. Discount on bonds $3,327 Interest p

13、ayable $28,000 December 31 Dr. Interest expense $15,664 Interest payable $28,000 Cr. Discount on bonds payable $1,664 Cash $42,000Between interest datesThe straight-line method A company is allowed to determine interest indirectly by allocating a discount or a premium equally to each period over the term to maturity Interest dates $33,3676=$5,561 per period Dr. Interest expense $47,561 Cr. Discount on bonds payable $5,561 Cash $42,000