Exercise 10-15 - 15,000.00 Discount on Notes Payable.

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EXERCISE 10-15 (15–20 minutes) (a) Equipment. ...................................................................... 86,861.85* Discount on Notes Payable. ...................................... 18,138.15 Cash . ...................................................................... 30,000.00 Notes Payable . .................................................... 75,000.00 *PV of $15,000 annuity @ 10% for 5 years ($15,000 X 3.79079) $56,861.85 Down payment 30,000.00 Capitalized value of equipment $86,861.85 (b) Notes Payable. ............................................................... 15,000.00 Interest Expense (see schedule). ............................ 5,686.19 Cash . ......................................................................
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Unformatted text preview: 15,000.00 Discount on Notes Payable. ........................... 5,686.19 Year Note Payment 10% Interest Reduction of Principal Balance 12/31/06 $56,861.85 12/31/07 $15,000.00 $5,686.19 $ 9,313.81 47,548.04 12/31/08 15,000.00 4,754.80 10,245.20 37,302.84 10-28 EXERCISE 10-15 (Continued) (c) Notes Payable . .............................................................. 15,000.00 Interest Expense . ......................................................... 4,754.80 Cash. ...................................................................... 15,000.00 Discount on Notes Payable . .......................... 4,754.80...
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Exercise 10-15 - 15,000.00 Discount on Notes Payable.

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