Chapter 14 - CHAPTER 14 Solutions to Exercises Quick Study...

Info iconThis preview shows pages 1–4. Sign up to view the full content.

View Full Document Right Arrow Icon
CHAPTER 14 Solutions to Exercises Quick Study 14-7 2005 July 1 Bonds Payable. ................................................................ 200,000 Premium on Bonds Payable. .......................................... 8,000 Gain on Retirement of Bonds*. ............................... 3,000 Cash. ........................................................................... 205,000 To record retirement of bonds before maturity. *$3,000 = $208,000 - $205,000 Quick Study 14-8 2005 Jan. 1 Bonds Payable. .................................................................. 1,000,000 Common Stock* 250,000 Contributed Capital in Excess of Par Value 750,000 To record retirement of bonds by stock conversion. *500,000 shares x $0.50
Background image of page 1

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

View Full DocumentRight Arrow Icon
Exercise 14-1 1. Semiannual cash interest payment = $1,700,000 x 9% x 1/2 = $76,500 2. Journal entries 2005 (a) Jan. 1 Cash. ......................................................................... 1,700,000 Bonds Payable. ................................................... 1,700,000 Sold bonds at par. (b) June 30 Bond Interest Expense. ........................................... 76,500 Cash. ................................................................... 76,500 Paid semiannual interest on bonds. (c) Dec. 31 Bond Interest Expense. ........................................... 76,500 Cash. ................................................................... 76,500 Paid semiannual interest on bonds. 3 . 2005 (a) Jan. 1 Cash* 1,666,000 Discount on Bonds Payable. ................................... 34,000 Bonds Payable. ................................................... 1,700,000 Sold bonds at 98. *($1,700,000 x 0.98) (b) Jan. 1 Cash* 1,734,000 Premium on Bonds Payable. ............................ 34,000 Bonds Payable. ................................................... 1,700,000 Sold bonds at 102. *($1,700,000 x 1.02)
Background image of page 2
Exercise 14-13 1. Amount of each payment = Initial note balance / Table B.3 value = $25,000 / 3.3872 = $7,381 2. Amortization table for the loan Payments Period Ending Date (A) Beginning Balance [Prior (E)]
Background image of page 3

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

View Full DocumentRight Arrow Icon
Image of page 4
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 06/29/2008 for the course ACCT 220 taught by Professor William during the Spring '08 term at University of Findlay.

Page1 / 9

Chapter 14 - CHAPTER 14 Solutions to Exercises Quick Study...

This preview shows document pages 1 - 4. Sign up to view the full document.

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