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
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This note was uploaded on 04/25/2010 for the course 3 3 taught by Professor 3 during the Spring '10 term at American College of Gastroenterology.

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

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