hw3 - Nikhita Kaul Accounting 2 Chapter 14 Homework Problem...

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Nikhita Kaul Accounting 2 – Chapter 14 Homework Problem 14-1A Part 1 a. Cash Flow Table Table Value* Amount Present Value Par value B.1 0.4564 $40,000 $18,256 Interest (annuity). ......... B.3 13.5903 2,000* 27,181 Price of bonds. .............. $45,437 Bond premium. ............. $ 4,537 *$40,000 x 0.10 x ½ = $2,000 b. 2008 Jan. 1 Cash. ......................................................................... 45,437 Premium on Bonds Payable. ............................ 4,537 Bonds Payable. ................................................... 40,000 Sold bonds on stated issue date. Part 2 a. Cash Flow Table Table Value* Amount Present Value Par value B.1 0.3769 $40,000 $15,076 Interest (annuity). ......... B.3 12.4622 2,000 24,924 Price of bonds. .............. $40,000 b. 2008 Jan. 1 Cash. ......................................................................... 4,000 Bonds Payable. ................................................... 40,000 Sold bonds on stated issue date. Part 3
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This note was uploaded on 03/05/2010 for the course BMGT 364 taught by Professor -- during the Spring '10 term at UMBC.

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hw3 - Nikhita Kaul Accounting 2 Chapter 14 Homework Problem...

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