Opt_Prob_Solutions_chap_10_Solutions

Opt_Prob_Solutions_chap_10_Solutions - Chapter 10 Optional...

Info iconThis preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
Chapter 10 Optional Problem Solutions P10–6. Req. 1 Computations: Interest: $700,000 x 8% = $ 56,000 Present value $ 700,000 x 0.6209 = 434,630 $ 56,000 x 3.7908 = 212,285 Issue Price $646,915 Req. 2 2006 2007 Interest expense. ..................................... $66,617 * $66,617 * *$700,000 - $646,915 = $53,085 ÷ 5 years = $10,617 + $56,000 = $66,617 Req. 3 2006 2007 Cash paid. ................................................ $56,000 $56,000 Req. 4 2006 2007 Bonds payable. ........................................ $657,532* $668,149** *$646,915 + $10,617 = $657,532 **$657,532+ $10,617 = $668,149
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
P10–7. Req. 1 Computations: Interest: $1,000,000 x 10% = $ 100,000 Present value $ 1,000,000 x 0.5674 = 567,400 $ 100,000 x 3.6048 = 360,480 $927,880 Req. 2 2006 2007 Interest expense. ..................................... $111,346* $112,707** $927,880 x 12% = $111,346
Background image of page 2
Background image of page 3
This is the end of the preview. Sign up to access the rest of the document.

Page1 / 3

Opt_Prob_Solutions_chap_10_Solutions - Chapter 10 Optional...

This preview shows document pages 1 - 3. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online