B	C	D	E	F	G
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3		Date of retirement
4					= $1,330,559 (net bond liability at beginning of March 02, 2030) x 3.000000% (semi-annual yield) x 2/6 months x 40.0000% retired.
5					= $5,322 - $4,000
6					= $1,500,000 x 40.0000% retired x 2/12 months x 4.0000%
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8	To record interest expense incurred on 40.0000% of the bonds between May 31, 2030 (the closest preceding accounting year-end date to the retirement date) and July 31, 2030. Effective interest rate method. [Note: July 31, 2030 is neither an accounting year-end or a bond interest payment anniversary date.]
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12					= ($625,000 - $10,000 + $64,471) - ($600,000 )
13					= $4,000 (see above journal entry) + $6,000 (= $1,500,000 x 40.0000% retired x 3/12 months x 4.0000% accrued at May 31, 2030) March 01, 2030 is the closest preceding interest payment date to the date of retirement.
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15					= $169,441 x 40.00% (unamortized at beginning of March 02, 2030) - $3,306 [$3,306 = ($1,330,559 x 3.000000% yield x 5/6 x 40.00%) - ($1,500,000 x 2.0000% interest paid x 5/6 x 40.00%) amortization, March 01, 2030 to July 31, 2030 on the 40.00% retired)]. March 01, 2030 is the closest preceding interest payment date to the date of retirement.
16
17					= $615,000 (=$1,500,000 x 40.0000% x 102.5000%) + $4,000 accrued (as appears in the journal entry above) + $6,000 accrued at May 31, 2030
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20	BondBeagle Copyright (c) Brian Conheady. All Rights Reserved.
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