14 Ch0. 14 - Class Templates Ans.

14 Ch0. 14 - Class Templates Ans. - Name: Required 1....

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Name: Solution Date: Ex: 14-6 Required 1. Chart of Accounts Cash Interest expense Bonds payable Premium on bonds payable Date Account Titles / Explanations Debit Credit 6/30/09 Cash 967,707 Bonds payable 900,000 Premium on bonds payable 67,707 12/31/09 Interest expense 58,062 Premium on bonds payable 438 Cash 58,500 IE: 6%*$967,707; Cash: 6.5%*$900,000 6/30/10 Interest expense 58,036 Premium on bonds payable 464 Cash 58,500 IE: 6%*($967,707-$438); Cash: 6.5%*$900,000 Check: 1,084,707 1,084,707
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Name: Solution Date: Ex: 14-7 Required 1. TVM Calcs N I/Y PV PMT FV 30 6.00 (7,500,000) (150,000,000) 129,352,753 Required 2. Chart of Accounts Cash Interest expense Bonds payable Discount on bonds payable Date Account Titles / Explanations Debit Credit 1/1/09 Cash 129,352,753 Discount bonds payable 20,647,247 Bonds payable 150,000,000 Required 3. 6/30/09 Interest expense 8,188,242 Discount on bonds payable ($20,647,247/30) 688,242 Cash 7,500,000 IE: $7,500,000+$688,242); Cash 5%*$150,000,000 Required 4. 12/31/16 Interest expense 8,188,242 Discount on bonds payable ($20,647,247/30) 688,242 Cash 7,500,000 IE: $7,500,000+$688,242); Cash 5%*$150,000,000 Check: 166,376,484 166,376,484
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Name: Solution Date: Ex: 14-11 Chart of Accounts Cash Interest expense Interest payable Bonds payable Discount on bonds payable Date Account Titles / Explanations Debit Credit 2/1/09 Cash 731,364 Discount bonds payable 68,636 Bonds payable 800,000 7/31/09 Interest expense 36,568 Discount on bonds payable 568 Cash 36,000 IE: 5%*$731,364; Cash: 4.5%*$800,000 12/31/09 Interest expense 30,497 Discount on bonds payable 497 Interest payable 30,000 IE:5%*(($731,364+$568)*5/6;IP:4.5%*$800,000*5/6 1/31/10 Interest expense 6,100 Interest payable 30,000 Discount on bonds payable 100 Cash 36,000 IE:5%*(($731,364+$568)*1/6;IP:4.5%*$800,000 Check: 903,165 903,165
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This note was uploaded on 10/23/2009 for the course MGMT 401 taught by Professor Merlot during the Spring '09 term at Indiana Institute of Technology.

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14 Ch0. 14 - Class Templates Ans. - Name: Required 1....

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