Practice Problems Key 207 10f

Practice Problems Key 207 10f - 44800 Premium on Bonds...

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file:c10handout dgd:08/10 1. Bonds Payable (300)(1000) 300000 Cash Received (300000)(097) 291000 Discount 9000 Amortize Discount: 9000/10 $900 2. B 3. C 4. 1/1/2009 Cash (800x$1000x.96) 768000 Discount on Bonds Payable 32000 Bonds Payable 800000 Amortize Discount 32000/5 6400 6/30/2009 Bond Interest Expense (24,000 + 6400) 54400 Discount on Bonds Payable 6400 Bond Interest Payable (800,000x.06)/2 48000 7/1/2009 Bond Interest Payable 48000 Cash 48000 5. 1/1/2009 Cash (800x$1000x.1.02) 816000 Premium on Bonds Payable 16000 Bonds Payable 800000 Amortize Premium 16000/5 3200 6/30/2009 Bond Interest Expense (48,000 -3200)
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Unformatted text preview: 44800 Premium on Bonds Payable 3200 Bond Interest Payable (800,000x.06)/2 48000 7/1/2009 Bond Interest Payable 48000 Cash 48000 use the same two entries for 12/31/09 &1/1/10. 6. 1/1/2009 12/31/2010 Bonds Payable 800000 800000 Plus: Premium on Bonds Payable 16000 9600 Carrying Value (or Book Value) 816000 809600 Premium Amortized Each Interest period 3200 For Two Years 6400 So: Premium on Bonds Payable 16000 Less: Amortized Premium Yr 1 & Yr 2 6400 Balance Remaining on 12/31/10 9600 7. A 8. C...
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