Burkhart-Exercise 14-9

Burkhart-Exercise 14-9 - Liabilities: Face Value: 4000000...

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Brittany Burkhart Exercise 14-9 a) 1 6/30/2008 Bond Interest Expense 4300920 Premium on B/P 300920 Bonds Payable 4000000 2 12/31/2008 Bond Interest Expense 258055 Premium on B/P 1945 Cash 260000 3 6/30/2009 Bond Interest Expense 257815 Premium on B/P 2185 Cash 260000 4 12/31/2009 Bond Interest Expense 257815 Premium on B/P 2185 Cash 260000 b) It is a liability valuation account. It is reported as a direct deduction from or addition to the face amount of the bond.
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Unformatted text preview: Liabilities: Face Value: 4000000 Premium on B/P: 300920 Liability for B/P: 4300920 c. 1 Interest Expense of 515,754 2 It matches expenses with revenues better than the straight line method. They both result in same total amount of interest expense over the term of the bonds. 3 46,234.89 4 The bond interest expense would be the same....
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This note was uploaded on 08/19/2009 for the course ACC ACC300 taught by Professor Jones during the Spring '09 term at Central Pennsylvania.

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