Chapter 10 E10-15 ACC

Chapter 10 E10-15 ACC - 20,000.00 Discount on Notes Payable.

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EXERCISE 10-15 (a) Equipment. ................................................................................. 105,815.80* Discount on Notes Payable. ...................................................... 24,184.20 Cash. ............................................................................... 30,000.00 Notes Payable. ................................................................ 100,000.00 *PV of $20,000 annuity @ 10% for 5 years ($20,000 X 3.79079) $ 75,815.80 Down payment 30,000.00 Capitalized value of equipment $105,815.80 (b) Notes Payable. ............................................................................ 20,000.00 Interest Expense (see schedule). ............................................... 7,581.58 Cash. ...............................................................................
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Unformatted text preview: 20,000.00 Discount on Notes Payable. .......................................... 7,581.58 Year Note Payment 10% Interest Reduction of Principal Balance 12/31/09 $75,815.80 12/31/10 $20,000.00 $7,581.58 $12,418.42 63,397.38 12/31/11 20,000.00 6,339.74 13,660.26 49,737.12 (c) Notes Payable. ............................................................................ 20,000.00 Interest Expense. ....................................................................... 6,339.74 Cash. ............................................................................... 20,000.00 Discount on Notes Payable. .......................................... 6,339.74...
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This note was uploaded on 10/31/2010 for the course FIN 82571 taught by Professor Sharp during the Fall '10 term at CSU Sacramento.

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Chapter 10 E10-15 ACC - 20,000.00 Discount on Notes Payable.

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