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chapter14 - P14-10 1 state interest market interest number...

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P14-10 1 state interest 8% semiannual market interest 10% semiannual number of annual 40 pincipal 800000 Interest 32000 17.15909 Principal 800000 0.14205 Present value (price) of the bonds Entry Cash 662731 Discount on bonds payable 137269 Bond payable 2 First interest Interest expense 33137 Discount on bonds payable Cash 3 Second interest Interest expense 33193 Discount on bonds payable Cash 4 Dec 31 fair value 668000 Dec 31 book value 665061 Fair value adjustment 2939 Entry 2939 Unrealized holding loss Fair value adjustment
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4% Amortization Schedule 5% Date 01/01/09 662731 06/30/09 32000 33137 1137 663867 Present Value 12/31/09 32000 33193 1193 665061 549091 113640 662731 800000 1137 32000 1193 32000 2939 Cash Interest Effective Interest Increase in Balance Outstanding Balance
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P14-15 state interest 5% market interest 10% number of annual 4 pincipal 100000 Present Value Interest 5000 3.16987 15849 Principal 100000 0.68301 68301 Present value (price) of the bonds 84150 1 Entry Cash 84150 Discount on bonds payable 15850 Bond payable 100000 3 Third interest Interest expense 9132 Discount on bonds payable 4132 Cash 5000 4 Installment payment 26547 6 Third interest Interest expense
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  • Spring '10
  • 3
  • 10%, Generally Accepted Accounting Principles, 5%, 8%, bonds payable Cash, 40 800000 32000 800000 17.15909 0.14205 662731 137269 2 33137 3 33193 4 668000 665061 2939 2939 4%

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