Intermediate Acc 2 Quiz Solution long term debt

Intermediate Acc 2 Quiz Solution long term debt - Premium...

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ACCT 202 Quiz Ch. 14 Spring 2007 a.) Pvoa(R=2,500,n=10, I=4%)= 2,500x8.111 = $20,278 PV(50,000,n=10,I=4%)= 50,000x.676= 33,800 $54,078 b.) date cv(beg) interest payment amortization cv(end) 4/1/x1 $54,078 10/1/x1 54,078 2,163 2,500 (337) 53,741 4/1/x2 53,741 2,150 2,500 (350) 53,390 10/1/x2 53,390 2,136 2,500 (364) 53,026 4/1/x3 53,026 2,121 2,500 (379) 52,647 10/1/x3 52,647 2,106 2,500 (394) 52,253 4/1/x4 52,253 2,090 2,500 (410) 51,843 10/1/x4 51,843 2,074 2,500 (426) 51,417 4/1/x5 51,417 2,057 2,500 (443) 50,973 10/1/x5 50,973 2,039 2,500 (461) 50,512 4/1/x6 50,512 1,987 2,500 (513) 50,000 c.) 4/1/x1 cash 54,078 Bonds Payable 50,000
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Unformatted text preview: Premium 4,078 10/1/x1 Interest Expense 2,163 Premium 337 Cash 2,500 12/31/x1 Interest Expense 1,075 Premium 175 Interest Payable 1,250 (6/12)x2,150, (6/12)x350, (6/12)x2,500 4/1/x2 Interest Expense 1,075 Premium 175 Interest Payable 1,250 Cash 2,500 2,150-1,075, 350-175 d.) 5/1/x3 Interest Expense 351 Premium 66 Interest Payable 417 2,106/6, 394/6, 2500/6. carrying value 4/1/x3 52,647 amortization 4/1/x3-5/1/x3 66 carrying value 5/1/x3 52,581 price 1.1x50,000 55,000 loss (2,419) 5/1/x3 Bonds Payable 50,000 Premium 2,581 Interest Payable 417 loss 2,419 Cash 55,417...
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