Homework Session 18 Spring 2010 - Homework Session 18...

Info iconThis preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
Homework Session 18 Spring 2010 M10–2 . Principal $600,000 × 0.4564 = $273,840 Interest $ 24,000 × 13.5903 = 326,167 Issue Price = $600,007* *Issue price should be exactly $600,000. The $7 difference is the result of rounding the present value factors at four digits. M10–3 . Principal $900,000 × 0.4350 = $391,500 Interest $ 27,000 × 13.2944 = 358,949 Issue Price = $750,449 M10–4. January 1, 2009: Cash (+A). .............................................................................. 940,000 Discount on Bonds Payable (+XL, -L). ................................... 60,000 Bonds Payable (+L). .......................................................... 1,000,000 June 30, 2009: Bond Interest Expense (+E, -SE) ($940,000 × 11% × 1/2) . 51,700 Discount on Bonds Payable (-XL, +L). ............................... 1,700 Cash (-A) ($1,000,000 × 10% × 1/2) . .............................. 50,000
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
M10–5. January 1, 2009: Cash (+A). .............................................................................. 580,000 Discount on Bonds Payable (+XL, -L). ................................... 20,000 Bonds Payable (+L). ........................................................... 600,000 June 30, 2009: Bond Interest Expense (+E, -SE). .......................................... 31,000
Background image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

Page1 / 6

Homework Session 18 Spring 2010 - Homework Session 18...

This preview shows document pages 1 - 3. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online