So it's the same mathematics that we had on our previous example just with
the adjustment for this 100,000 payment that the investor's making
on March 1st that they'll get back on June 30th.
So let's look at it.
So once again, that interest that was already accrued,
already due on March 1st would be 6% times now 60/360.
The number of days it's already been accrued, times 10 million equals $100,000.
And we're assuming that the investor has paid the interest.
So there's a slight difference on that initial journal entry, and
here's what it looks like.
I'm receiving more cash.
I'm receiving 10,100,000 in cash up front.
My bonds payable will still be $10 million because there's no discount or
premium on the bonds, no other initial cost to account for.
My interest payable day one will be 100,000.
I've received that from the investor.
It's actually interest payable that we will account for in the dates.
So again, this problem is structured to be as simple as possible,
with no premium discount or debt issuance cost.
But you will see this is in accounting problems sometimes.
You probably won't see it much in the real world.