This document contains problems and instructions regarding non-current liabilities, including: 1) Issuing and amortizing bonds payable for ABC Co., including journal entries for issuance, interest payments, and extinguishment. 2) Transactions between BBB Corp. and CCC Corp. involving notes receivable/payable with instructions to prepare amortization schedules and journal entries. 3) Calculating the selling price and amortization schedule for bonds issued by PT AAA, including related journal entries for issuance, interest payments, and bond buybacks. 4) Two multiple choice homework questions about bond issuances and debt settlements.

1. 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.

2. 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