Excercise 16-6 - EXERCISE 16-6 (2535 minutes) (a) December...

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EXERCISE 16-6 (25–35 minutes) (a) December 31, 2010 Bond Interest Expense. ........................................... 117,000 Premium on Bonds Payable ($60,000 X 1/20). ................................................... 3,000 Cash ($3,000,000 X 8% X 6/12). ....................... 120,000 (b) January 1, 2011 Bonds Payable. ......................................................... 600,000 Premium on Bonds Payable. ................................... 9,600 Common Stock [8 X $100 X ($600,000/$1,000)]. ................... 480,000 Paid-in Capital in Excess of Par. ..................... 129,600 Total premium ($3,000,000 X .02) $60,000 Premium amortized ($60,000 X 2/10) 12,000 Balance $48,000 Bonds converted ($600,000 ÷ $3,000,000) 20% Related premium ($48,000 X 20%) 9,600
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EXERCISE 16-6 (Continued) (c) March 31, 2011 Bond Interest Expense. ........................................... 11,700 Premium on Bonds Payable ($9,600 ÷ 8 years) X 3/12. .................................... 300 Bond Interest Payable
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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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Excercise 16-6 - EXERCISE 16-6 (2535 minutes) (a) December...

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