Intermediate Acc 2 - Bonds quiz solution

Intermediate Acc 2 - Bonds quiz solution - Acct 202- Quiz...

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Acct 202- Quiz LT Liabilities - Summer 2004 Solution Question 1: 1) Pvoa(R=?, n=5x2=10, I=6%/2=3%)= Rxf=Rx8.53=$200,000 R=200,000/8.53= 23,447 2) Date Carrying Interest Carrying value(beg.) CVx.03 Payment amortization value(end) 1/1/2001 200,000 7/1/2001 200,000 6,000 23,447 (17,447) 182,553 1/1/2002 182,553 5,477 23,447 (17,970) 164,583 7/1/2002 164,583 4,937 23,447 (18,510) 146,073 1/1/2003 146,073 4,382 23,447 (19,065) 127,008 7/1/2003 127,008 3,810 23,447 (19,637) 107,372 1/1/2004 107,372 3,221 23,447 (20,226) 87,146 7/1/2004 87,146 2,614 23,447 (20,833) 66,313 1/1/2005 66,313 1,989 23,447 (21,458) 44,855 7/1/2005 44,855 1,346 23,447 (22,101) 22,754 1/1/2006 22,754 683 23,437 (22,754) - Note rounding adjustment to payment on 1/1/06. 3) 1/1/x1 Building 200,000 Mortgage payable 200,000 7/1/x1 Mortgage payable 17,447 Interest Expense 6,000 Cash 23,447 12/31/x1 Interest Expense 5,477 Interest payable 5,477 Mortgage payable 36,480 Current portion of mortgage payable 36,480 17,970+18,510
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This note was uploaded on 06/24/2008 for the course ACCT 202 taught by Professor Hintz during the Spring '08 term at St. John Fisher College.

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Intermediate Acc 2 - Bonds quiz solution - Acct 202- Quiz...

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