PS_09_Solution_(APSCW_-_F2009)

# PS_09_Solution_(APSCW_-_F2009) - FINANCIALACCOUNTING...

This preview shows pages 1–3. Sign up to view the full content.

BUSI W3013 Solution to Problem Set 09 | Page 1 F INANCIAL A CCOUNTING BUSI W3013 | F ALL 2009 S OLUTION TO P ROBLEM S ET 09 PROFESSOR ANDREW SCHMIDT I. JSO Company Issue price: Bond 1 (Issued on 07/01/2007): Issue price 2 05 . 1 000 , 1 100 05 . 1 100 = 1,092.97 Bond 2 (Issued on 10/01/2007): Issue price 5 05 . 1 000 , 1 30 05 . 1 30 = 913.41 Amortization schedule: Year Beginning Balance Interest Expense Coupon Premium Amortization Ending Balance 1 1,092.97 54.65 100.00 45.35 1,047.62 2 1,047.62 52.38 100.00 47.62 1,000.00 Year Beginning Balance Interest Expense Coupon Discount Amortization Ending Balance 1 913.41 45.67 30.00 15.67 929.08 2 929.08 46.45 30.00 16.45 945.54 3 945.54 47.28 30.00 17.28 962.81 4 962.81 48.14 30.00 18.14 980.95 5 980.95 49.05 30.00 19.05 1,000.00 Journal entries: 07/01/2007: Assets = Liabilities + CC + RE D+[C–] D–[C+] D–[C+] D–[C+] Cash Bonds Payable Premium on BP +\$1,092.97 +\$1,000 +\$92.97

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

View Full Document
BUSI W3013 Solution to Problem Set 09 | Page 2 10/01/2007: Assets = Liabilities + CC + RE D+[C–] D–[C+] D–[C+] D–[C+] Cash Discount on BP Bonds Payable +\$913.41 -\$86.59 +\$1000.00 12/31/2007 (Adjusting Entries): Assets = Liabilities + CC + RE D+[C–] D–[C+] D–[C+] D–[C+] Cash Sales +\$200 +\$200 Expenses Cash –\$120 –\$120 Interest Exp: B1 Interest Exp: B2 Premium on BP Discount on BP Interest Payable: B1 Interest Payable: B2 –\$22.68 +3.92 +\$50.00 +\$7.50 –\$27.32 –\$11.42 12/31/2007 (Closing Entries): Assets = Liabilities
This is the end of the preview. Sign up to access the rest of the document.

## This note was uploaded on 02/27/2011 for the course BUSINESS 101 taught by Professor S during the Spring '10 term at Columbia College.

### Page1 / 5

PS_09_Solution_(APSCW_-_F2009) - FINANCIALACCOUNTING...

This preview shows document pages 1 - 3. Sign up to view the full document.

View Full Document
Ask a homework question - tutors are online