ACT3392SpringTraditionalHWChs14&15 - HOMEWORK - SPRING...

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HOMEWORK - SPRING 2010 ALL homework assignments must be completed by using some type of computer software program, e.g., word, excel. YOU WILL NOT RECEIVE FULL CREDIT FOR THE HOMEWORK UNLESS IT IS COMPLETED BY USING A COMPUTER. NO CREDIT WILL BE GIVEN FOR LATE HOMEWORK. When completing your homework assignments DO NOT use any abbreviations, e.g., spell out Governmental Accounting Standards Board instead of simply writing GASB. As discussed during class, you can work on these homework assignments in groups or as an individual. 1. (2.5 points) On July 1, 2009, Noble, Inc. issued 9% bonds in the face amount of $5,000,000, which mature on July 1, 2015. The bonds were issued for $4,695,000 to yield 10%, resulting in a bond discount of $305,000. Noble uses the effective-interest method of amortizing bond discount. Interest is payable annually on June 30. At June 30, 2011 , what amount will be in Noble's unamortized bond discount account? SHOW YOUR WORK. 2. (1.5 points) On January 1, 2010, Huff Co. sold $1,000,000 of its 10% bonds for $885,296 to yield 12%. Interest is payable semiannually on January 1 and July 1. What amount should Huff report as interest expense for the six months ended June 30, 2010 ? SHOW YOUR WORK. 3. (2 points) On January 1, 2011, Doty Co. redeemed its 15-year bonds of $2,500,000 par value for 102. The bonds were originally issued on January 1, 1999 at 98 and had a maturity date of January 1,
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This note was uploaded on 02/21/2011 for the course ACCT 3392 taught by Professor Dr.terpin during the Spring '10 term at Troy.

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ACT3392SpringTraditionalHWChs14&15 - HOMEWORK - SPRING...

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