ACC 363 P11-6A - ... 7,479 Bond Interest Payable....

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*PROBLEM 11-6A (a) 2006 July 1 Cash. .................................................. 3,375,680 Discount on Bonds Payable. ........... 224,320 Bonds Payable. ......................... 3,600,000 (b) Dec. 31 Bond Interest Expense. ................... 168,784 ($3,375,680 X 5%) Discount on Bonds Payable. ... 6,784 Bond Interest Payable. ............. 162,000 ($3,600,000 X 9% X 1/2) (c) 2007 July 1 Bond Interest Expense. ................... 169,123 [($3,375,680 + $6,784) X 5%] Discount on Bonds Payable. ... 7,123 Cash. .......................................... 162,000 (d) Dec. 31 Bond Interest Expense. ................... 169,479 [($3,382,464 + $7,123) X 5%] Discount on Bonds Payable.
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Unformatted text preview: ... 7,479 Bond Interest Payable. ............. 162,000 (e) KINGSTON SATELLITES Bond Discount Amortization Effective-Interest MethodSemiannual Interest Payments 9% Bonds Issued at 10% Semi-(A) (B) Interest (C) Discount (D) Unamor-(E) Bond annual Interest Periods Interest to Be Paid Expense to Be Recorded Amor-tization (B) (A) tized Discount (D) (C) Carrying Value ($3,600,000 D) Issue date 1 2 3 $162,000 162,000 162,000 $168,784 169,123 169,479 $6,784 7,123 7,479 $224,320 217,536 210,413 202,934 $3,375,680 3,382,464 3,389,587 3,397,066...
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ACC 363 P11-6A - ... 7,479 Bond Interest Payable....

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