Solution to Assignment #1

Solution to Assignment #1 - SOLUTION TO ASSIGNMENT #1...

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

View Full Document Right Arrow Icon
Page 1 of 4 SOLUTION TO ASSIGNMENT #1 Problem 1: 3/1/07 Cash . ............................................................... 236,045 Bonds Payable . ..................................... 236,045* *Maturity value of bonds payable $250,000 Present value of $250,000 due in 7 periods at 6% ($250,000 X .66506) $166,265 Present value of interest payable semiannually ($12,500 X 5.58238) 69,780 Proceeds from sale of bonds $236,045 Schedule of Bond Discount Amortization Date Cash Paid (5%) Interest Expense (6%) Discount Amortized Carrying Amount of Bonds 3/1/07 $236,045 9/1/07 $12,500 $14,163 $1,663 237,708 3/1/08 12,500 14,262 1,762 239,470 9/1/08 12,500 14,368 1,868 241,338 3/1/09 12,500 14,480 1,980 243,318
Background image of page 1

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

View Full DocumentRight Arrow Icon
Page 2 of 4 9/1/07 Interest Expense . ........................................ 14,163 Bonds Payable (discount amort.) . .... 1,663 Cash . .................................................. 12,500 12/31/07 Interest Expense ($14,262 X 4/6) . .............. 9,508 Bonds Payable (discount amort.) . .... 1,175
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.

This note was uploaded on 10/16/2010 for the course ACCO Acco 320 taught by Professor Luohe during the Spring '10 term at Concordia Canada.

Page1 / 4

Solution to Assignment #1 - SOLUTION TO ASSIGNMENT #1...

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