Kinston Satellite

Kinston Satellite - (A) Interest Expense to Be Recorded (B)...

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Kinston Satellites Face Value of Bonds $3,600,000 Issuance Price $3,375,680 Discount on Bonds $224,320 a) July 1 Cash $3,375,680 Discount on Bonds Payable $224,320 Bonds Payable $3,600,000 b) December 31 Bond Interest Expense $168,784 Discount on Bonds Payable $6,784 Bond Interest Payable $162,000 c) July 1 Bond Interest Exense $169,123 Discount on Bonds Payable $7,123 Cash $162,000 d) December 31 Bond Interest Expense $169,479 Discount on Bonds Payable $7,479 Bond Interest Payable $162,000 e) Kinston Satellites Bond Discount Amortization Effective-Interest Method - Semiannual Interest Paymen 9% Bonds Issued at 10% Issue Date January 1 $162,000 $168,784 $6,784 July 1 $162,000 $169,123 $7,123 January 1 $162,000 $169,479 $7,479 $162,000 $169,853 $7,853 $162,000 $169,853 $7,853 $162,000 $170,639 $8,639 $162,000 $171,071 $9,071 $162,000 $171,524 $9,524 $162,000 $172,000 $10,000 Semiannual Interest Periods Interest to Be Paid
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Unformatted text preview: (A) Interest Expense to Be Recorded (B) Discount Amortizati on ( C ) = (B - A) $162,000 $172,500 $10,500 $162,000 $173,025 $11,025 $162,000 $173,577 $11,577 $162,000 $174,155 $12,155 $162,000 $174,763 $12,763 $162,000 $175,401 $13,401 $162,000 $176,071 $14,071 $162,000 $176,775 $14,775 $162,000 $177,514 $15,514 $162,000 $178,289 $16,289 $162,000 $179,104 $17,104 nts $224,320 $3,375,680 $217,536 $3,382,464 $210,413 $3,389,587 $202,933 $3,397,067 $195,080 $3,404,920 $187,227 $3,412,773 $178,588 $3,421,412 $169,518 $3,430,482 $159,993 $3,440,007 $149,993 $3,450,007 Unamortize d Discount (D) = (D - C) Bond Carrying Value (E) = ($3,600,000 - D) $139,493 $3,460,507 $128,467 $3,471,533 $116,891 $3,483,109 $104,735 $3,495,265 $91,972 $3,508,028 $78,571 $3,521,429 $64,499 $3,535,501 $49,724 $3,550,276 $34,210 $3,565,790 $17,921 $3,582,079 $817 $3,599,183...
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Kinston Satellite - (A) Interest Expense to Be Recorded (B)...

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