On May 1, 2002, Bolt Corp. issued 11% bonds in the face amount of $1,000,000 that mature on May 1, 2012.
The bonds were issued to yield 10%, resulting in bond premium of $62,000. Bolt uses the effective interest method of amortizing bond premium. Interest is payable semiannually on November 1 and May 1.

In its October 31, 2002, balance sheet, what amount should Bolt report as unamortized bond premium?

For this question, we should used $62000*10%, the payment is 1000000*11% right , and what should we do with unamortized bond premiun.

Interest payments will be $110,000 per annum ($1,000,000 x 11%). Amortization of bond premium may be on straight line basis or on effective interest method. The entry will be debit to bond premium and credit to interest expense.

Perhaps you can return to this one after you figure out how to do the other stuff?

You need to learn the concept of carrying value. That's the face value either less a discount, or plus a premium. The effective interest method is doing it based on market rate (yield) on the carrying value, not on the premium itself.

What about the fact that we do not post the entry for another day, i.e. Nov 1st is one day before the balance sheet date (October 31)?

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Originally Posted by vla12

What about the fact that we do not post the entry for another day, i.e. Nov 1st is one day before the balance sheet date (October 31)?

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:) Rather, one day after the balance sheet day.