B	C	D	E	F
2
3
4
5
6
7
8
9
10	To record the issuance of 10.00-year bonds, face value $1,500,000, stated interest rate 4.0000% per annum. The bond date is March 01, 2027 with interest paid semi-annually. There are 119 months (including 20 interest payments) between the bond's issuance and maturity dates. For details of how this journal entry's amounts are determined, please refer to the ISSUANCE_CALC sheet.				BondBeagle Copyright (c) Brian Conheady. All Rights Reserved.
11
12		The first accounting year-end after the issuance date
13					= $31,921 (see amortization table's semi-annual period 1) x 2/5 months (between April 01, 2027 and September 01, 2027: see also the Date-Tables screen).
14					= $12,768 - $10,000, or = [$1,285,143 - $1,278,222 (the difference between the net bond liability at the end and the beginning of interest-payment-period 1 - see columns J and C on the amortization table)] x 2/5 months.
15
16	To record bond interest expense incurred between April 01, 2027 (the date of issuance) and May 31, 2027. Effective interest rate method.
17
18
19
20
21
22
23
24		The first interest payment date after the issuance date
25					= $31,921 (see amortization table's semi-annual period 1) x 3/5 (3 = the months between May 31, 2027 and September 01, 2027: see also the Date_Tables screen).
26					= $19,153 - $15,000
27					= $1,500,000 x 3/12 months x 4.0000%
28	To record bond interest expense incurred between May 31, 2027, the first accounting year-end after the issuance date , and September 01, 2027. Effective interest rate method.
29
30
31
32					= $15,000 interest accrued (as appears in the journal entry above): + $10,000 [$10,000 = $1,500,000 x 2/12 months x 4.0000% interest accrued at May 31, 2027, the first accounting year-end after the issuance date ]: + $5,000 accrued interest paid by lenders on the issuance date.
33
34
35
36		The second interest payment date after the issuance date
37					= $1,285,143 (see amortization table's semi-annual period 2) x 3.0000% (semi-annual yield) x 6/6 months
38
39					= $1,500,000 x 6/12 months x 4.0000%
40	To record bond interest expense incurred between September 01, 2027 (the first interest payment date after the issuance date ) and March 01, 2028. Effective interest rate method.
41
42
43
44
45
46
47
48		The second accounting year-end after the issuance date
49					= $1,293,697 (see amortization table's semi-annual period 3) x 3.0000% (semi-annual yield) x 3/6 months
50
51					= $1,500,000 x 3/12 months x 4.0000%
52	To record bond interest expense incurred between March 01, 2028 (the second interest payment date after the issuance date) and May 31, 2028. Effective interest rate method.
53
54
55
56
57
58
59
60		The third interest payment date after the issuance date
61					= $1,293,697 (see amortization table's semi-annual period 3) x 3.0000% (semi-annual yield) x 3/6 months
62
63					= $1,500,000 x 3/12 months x 4.0000%
64	To record bond interest expense incurred between May 31, 2028 (the second accounting year-end after the issuance date ) and September 01, 2028. Effective interest rate method.
65
66
67
68					= $15,000 interest accrued (as appears in the journal entry above) + $15,000 [$15,000 = $1,500,000 x 3/12 months x 4.0000% interest accrued at May 31, 2028, the second accounting year-end after the issuance date ]
69
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72	BondBeagle Copyright (c) Brian Conheady. All Rights Reserved.
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