Intermediate Acc 2 Troubled Debt quiz with solution

Intermediate Acc 2 Troubled Debt quiz with solution - Cash...

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Kyle Woods 94 Acc Troubled Debt Quiz Question 1 Debtor's Books dr cr Land 5000 20000-15000 = 5000 Gain on Disposal of Land 5000 Note Payable 50000 Accrued Int. Payable 4000 50000*.08 = 4000 Land 20000 Gain on Restructuring 34000 54000-20000 = 34000 Creditor's Books dr cr Land 20000 Allowance for D. A. 34000 Notes Receivable 50000 Interest Receivable 4000 Question 2 Debtor's Books dr cr Note Payable 50000 Accrued Int. Payable 4000 50000 * .08 = 4000 Gain on Restructuring 36000 Common Stock 5000 1000 * $5/share = 5000 APIC - Com. Stock 13000 1000 * $18/share = 18000-5000 = 13000 Creditor's Books dr cr Investment in Debtor 18000 Allowance for D. A. 36000 54000 - 18000 = 36000 Note Receivable 50000 Interest Receivable 4000 Question 3 Debtor's Books dr cr 12/31/2006 Note Payable(old) 50000 Accrued Int. Payable 4000 Note Payable(new) 30000 Premium on note 7200 30000 * .06 * 4 = 7200 Gain on Restructuring 16800 54000-30000-7200 = 16800 12/31/2007 dr cr Premium on note 1800 30000 * .06 = 1800
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Unformatted text preview: Cash 1800 Creditor's Books 12/31/2006 dr cr 50000+4000-28012 Allowance for D. A. 28012 25,988 1800 * pvoa(n=4, I=8%) = 1800 * 3 Note Receivable(new) 30000 30000 * pvf(n=4,I=8%) = 30000 * . Discount on N/R(new) 4012 1988 58012 - 54000 = 4012 Note Receivable(old) 50000 Interest Receivable 4000 12/31/2007 dr cr Cash 1800 28012 * .08 = 2241 - 1800 = 441 Discount on N/R 441 Interest Income 2241 Question 4 Smith's Books dr cr 54000 Note Payable(old) 50000 1-2700 Interest Payable 4000 2-2700 Note Payable 45000 3-2700 Premium on Note 9000 54000-45000 = 9000 4-47700 0.888% 12/31/2007 dr cr Interest Expense 480 54000 * .00888 = 479.5 = 480 Premium on Note 2220 2700-480 = 2200 Cash 2700-6 3.312 = 5961.6 22050 + 5961.6 = 28011.6--> 28012 .735 = 22050 30,000-28,012=1988 45000 * .06 = 2700 45000 + 2700 = 47700...
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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 Troubled Debt quiz with solution - Cash...

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