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AC116 TEXTBOOK EXERCISES -UNIT 8(1)-Stephanie HallHawkins

# AC116 TEXTBOOK EXERCISES -UNIT 8(1)-Stephanie HallHawkins -...

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Problem 14-2A Name: Stephanie HallHawkins Section: 07AU Enter the appropriate account titles and amounts in the shaded cells below. A red asterisk (*) will appear to the right of an incorrect amount in the outlined cells. JOURNAL Description Debit Credit 1. Cash 30,237,139 Discount on Bonds Payable 1,762,861 Bonds Payable 32,000,000 2. a. Interest Expense 2,008,143 Discount on Bonds Payable 88,143 Cash 1,920,000 b. Interest Expense 2,008,143 Discount on Bonds Payable 88,143 Cash 1,920,000 3. Total interest expense for 2010: \$2,008,143 4. Will the bond proceeds always be less than the face amount of the bonds when the contract rate is less than the market rate of interest? Yes 5. Face amount of bond issue \$32,000,000 Present value factor from interest tables 0.889115 \$28,451,669 Semi-annual interest payment \$2,008,143 Present value factor from interest tables 0.889115 1,785,470 Proceeds of bond issue \$30,237,139

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Problem 14-3A Name: Stephanie HallHawkins

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Unformatted text preview: Section: 07AU Enter the appropriate account titles and amounts in the shaded cells below. A red asterisk (*) will appear to the right of an incorrect amount in the outlined cells. JOURNAL Description Debit Credit 1. Cash 3,461,181 Premium on Bonds Payable 461,181 Bonds Payable 3,000,000 2. a. Interest Expense 164,627 Premium on Bonds Payable 15,373 Cash 180,000 b. Interest Expense 329,254 Premium on Bonds Payable 30,746 Cash 360,000 3. Total interest expense for 2010: \$164,627 4. Will the bond proceeds always be more than the face amount of the bonds when the contract rate is more than the market rate of interest? Yes 5. Face amount of bond issue \$3,000,000 Present value factor from interest tables 1.093709 \$3,281,127 Semi-annual interest payment \$164,627 Present value factor from interest tables 1.093709 180,054 Proceeds of bond issue \$3,461,181...
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AC116 TEXTBOOK EXERCISES -UNIT 8(1)-Stephanie HallHawkins -...

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