ACT3392SpringTraditionalHWChs14&15solution

ACT3392SpringTraditionalHWChs14&15solution -...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
HOMEWORK - SPRING 2010 1. (2.5 points) Noble, Inc. $264,050 (305,000 - 19,500 - 21,450) July 1, 2009 Cash $4,695,000 Discount on bonds payable 305,000 Bonds payable $5,000,000 June 30, 2010 Interest expense $469,500* Cash $450,000 Discount on bonds payable 19,500 * $4,695,000 x 10% = $469,500 June 30, 2011 Interest expense $471,450* Cash $450,000 Discount on bonds payable 21,450 * $4,714,500 x 10% = $471,450 See last page of this handout!!! 2. (1.5 points) Huff Co. $53,117.76 ($885,296 x 12% x 6/12) 3. (2 points) Doty Co. Bonds payable $2,500,000 Loss 90,000 Discount on bonds payable $ 10,000** Bond issue costs (an asset) 30,000*** Cash 2,550,000* * $2,500,000 x 1.02 ** 12 years of SL amortization occurred – 3 years unamortized; bonds issued at $2,450,000 ($2,500,000 x 0.98) thus, an original discount balance of $50,000; $50,000 / 15 years = $3,333.33 amortization per year *** $150,000 / 15 years = $10,000 expensed per year – 3 years not yet expenses as of redemption 4. (2 points)
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

Page1 / 2

ACT3392SpringTraditionalHWChs14&15solution -...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online