EXERCISE 14-9 - EXERCISE 14-9 (2030 minutes) (a) 1. June...

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(a) 1. June 30, 2010 Cash. .................................................. ............................................................ 5,376,150.00 Bonds Payable. ....................... 5,000,000.00 Premium on Bonds Payable. . 376,150.00 2. December 31, 2010 Interest Expense ($5,376,150.00 X 12% X 6/12). ....... 322,569.00 Premium on Bonds Payable. ........... 2,431.00 Cash ($5,000,000 X 13% X 6/12). ... 325,000.00 3. June 30, 2011 Interest Expense [($5,376,150.00 – $2,431.00) X 12% X 6/12]. .............................. 322,423.14 Premium on Bonds Payable. ........... 2,576.86 Cash. ......................................... 325,000.00 4. December 31, 2011 Interest Expense [($5,376,150.00 – $2,431.00 – $2,576.86) X 12% X 6/12]. ............ 322,268.53 Premium on Bonds Payable. ........... 2,731.47 Cash. ......................................... 325,000.00 (b) Long-term Liabilities: Bonds payable, 13% (due on June 30, 2030). ..... $5,000,000.00 Premium on Bonds Payable*. .............................. 368,410.67
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This note was uploaded on 04/22/2010 for the course ACCT ACC552 taught by Professor Hint during the Spring '09 term at Keller Graduate School of Management.

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EXERCISE 14-9 - EXERCISE 14-9 (2030 minutes) (a) 1. June...

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