UNIT 142A 14 3A - Enter the appropriate account titles and...

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Enter the appropriate account titles and amounts in the shaded cells below. A red asterisk (*) will appear to the right of an incorrect amount in the outlined cells. 14.3A JOURNAL Description Debit Credit 1. 2. a. b. 3. Total interest expense for 2010: 4. Will the bond proceeds always be more than the face amount of the bonds when the contract rate is more than the market rate of interest? 5. Face amount of bond issue Present value factor from interest tables Semi-annual interest payment Present value factor from interest tables Proceeds of bond issue $ 3,461,181
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Maui Blends, Inc., produces and sells organically grown coffee. On July 1, 2010, Maui Blends, Inc. issued $3,000,000 of 15-year, 12% bonds at an effective interest rate of 10%, receiving cash of $3,461,181. Interest on the bonds is payable semi-annually on December 31 and June 30. The fiscal year of the company is the calendar year. Instructions
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This note was uploaded on 11/13/2010 for the course ACC116 ACC116 taught by Professor Allen during the Spring '09 term at Kaplan University.

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UNIT 142A 14 3A - Enter the appropriate account titles and...

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