week 4 solutions - EXERCISE108 2007 (a) Sept. 1 300,000 (b)...

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EXERCISE 10-8 2007 (a) Sept. 1 Cash. ........................................................ 300,000 Bonds Payable. ............................... 300,000 (b) Dec. 31 Bond Interest Expense. ......................... 8,000 Bond Interest Payable. ................... 8,000 ($300,000 X 8% X 4/12) 2008 (c) Sept. 1 Bond Interest Expense . ........................ 16,000 ($300,000 X 8% X 8/12) Bond Interest Payable. ........................... 8,000 Cash ($300,000 X 8% X 12/12). ...... 24,000 EXERCISE 10-9 (a) Jan. 1 Cash. ........................................................ 100,000 Bonds Payable. ............................... 100,000 (b) Dec. 31 Bond Interest Expense. .......................... 7,000 Bond Interest Payable. ................... 7,000 ($100,000 X 7%) (c) Jan. 1 Bond Interest Payable. ........................... 7,000 Cash. ................................................ 7,000
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EXERCISE 10-10 (a) The General Electric bonds were issued at a premium and the Boeing bonds were issued at a discount. (b)The prices of the two bonds differed because bond price is
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This note was uploaded on 09/01/2008 for the course ACC 537 taught by Professor Matais during the Summer '08 term at University of Phoenix.

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week 4 solutions - EXERCISE108 2007 (a) Sept. 1 300,000 (b)...

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