Chapter%2012%20-%20In-Class%20Exercises%20-%20Solution%20#1

Chapter%2012%20-%20In-Class%20Exercises%20-%20Solution%20#1...

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Unformatted text preview: In‐Class Exercises Solutions: Exercise 1: (a) FV $ 1,000,000 Cash Bonds Payable (b) FV n $ 1,300,000 10 Accrued Interest (April): i stated i pmt 3.0% 2.0% $ 26,000.00 PV $1,189,107.36 $4,333.33 $1,193,440.69 1,193,440.69 110,892.64 n 6 i stated i pmt 3.0% 3.0% $ 30,000.00 PV $1,000,000.00 1,000,000.00 Chapter 12 Disc/Prem $0.00 1,000,000.00 Disc/Prem ($110,892.64) Cash Discount on Bonds Payable Bonds Payable Interest Payable (c) FV n i stated i pmt $ 2,300,000 26 2.0% 3.5% $ 80,500.00 Accrued Interest (June‐August): 1,300,000.00 4,333.33 PV $2,994,175.73 $40,250.00 $3,034,425.73 $3,034,425.73 Disc/Prem $694,175.73 Cash Premium on Bonds Payable Bonds Payable Interest Payable (d) FV $ 1,000,000 n 10 i stated i pmt 2.0% 0.0% $ ‐ 694,175.73 2,300,000.00 $40,250.00 PV $820,348.30 820,348.30 179,651.70 Disc/Prem ($179,651.70) Cash Discount on Bonds Payable Bonds Payable 1,000,000.00 ACCT 4050 Page 2 of 3 Chapter 12 ‐ In‐Class Exercises ...
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