Jennifer Johnson296 AC116_UNIT_8_ EXERCISES UNIT 8

Jennifer Johnson296 AC116_UNIT_8_ EXERCISES UNIT 8 -...

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Problem 14-2A Name: Jennifer Johnson Section: ac116 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 0.283800 $9,081,600 Semi-annual interest payment $1,920,000 Present value factor from interest tables 11.018510 21,155,539 Proceeds of bond issue $30,237,139
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Problem 14-3A Name: Jennifer Johnson
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Unformatted text preview: Section: AC116 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 164,627 Premium on Bonds Payable 15,373 Cash 180,000 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 0.231380 $694,140 Semi-annual interest payment $180,000 Present value factor from interest tables 15.372450 2,767,041 Proceeds of bond issue $3,461,181...
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Jennifer Johnson296 AC116_UNIT_8_ EXERCISES UNIT 8 -...

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