ACCT 320 Hinson 3-2 Bonds and Long Term Notes

ACCT 320 Hinson 3-2 Bonds and Long Term Notes - ACCT 320...

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

View Full Document Right Arrow Icon
ACCT 320 Assignment 3-2 Bonds and Long Term Notes Jamie Hinson 30-Sep-08 P14-1 1) January 1, 2006 = $50,000 At Issuance Instaform (Borrower) Cash $50,000 Notes Payable $50,000 2) At Each of the Interest Dates Instaform (Borrower) Interest Expense $4,500 Cash $4,500 3) Sold at Maturity Broadcourt (Borrower) Notes payable $50,000 Cash $50,000 Instaform (Lender) Cash $50,000 Notes receivable $50,000 P14-2 1) 1-Mar-06 $16,000,000 1-Jun-06 $16,000,000 30-Sep-06 $16,000,000
Background image of page 1

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

View Full DocumentRight Arrow Icon
+ 160,000,000 = Present value of cash flows discounted at 12% = $24,960,000 ?? I'm not totally understanding this problem. The examples in the book under LO2 do not match up with the P14-12 Note issue $100,000 Term of note issue (years) 4 Note issue interest rate 5% Comparison interest rate 10% Amortization Schedule Requirement 1 Present value (price) of note: Interest 5% Principal 4 years Present value (price) of the note $100,000 General Journal Account Debit Credit
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

ACCT 320 Hinson 3-2 Bonds and Long Term Notes - ACCT 320...

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