measterly_acc306week2

measterly_acc306week2 - Week 2 Assignment- 1 Week 2...

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Week 2 Assignment- 1 Week 2 Assignment Michael Easterly Intermediate Accounting II ACC306 Prof. Lisbeth Bundli August 2, 2010
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Week 2 Assignment- 2 Week 2 Assignment P14-15 Livermore Laboratories (in mill) July 1, 06 Investment in bonds (face amount) 16,000,00 0 Discount on bonds payable 300,000 Bonds payable (face amount) 15,700,000 Oct 1, 06 Investment in bonds (face amount) 31,160,00 0 Premium on bond investment 1,160,000 Interest receivable 1,200,000 Cash (price + accrued interest) 32,360,000 Dec 1, 06 Cash (stated rate x face amount) 1,800,000 Premium on bond investment (10 yearsx12months- 4months= 1160000/116=10,000x2 20,000 Interest receivable 1,200,000 Interest revenue 580,000 Dec 31,06 Interest receivable (16,000,000x.05) 800,000 Discount on bond investment 7,500 Interest revenue 807,500 Interest receivable (30,000,000x. .06x1/6) 300,000 Premium on investment 10,000 Interest revenue 290,000 Jan 1, 07 Cash 800,000 Interest receivable 800,000 June 1, 07 Cash 1,800,000 Premium on investment 10,000x5
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measterly_acc306week2 - Week 2 Assignment- 1 Week 2...

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