tutorial_8 - AP106. Req. 1 Computations: Interest:...

Info iconThis preview shows pages 1–4. Sign up to view the full content.

View Full Document Right Arrow Icon
Background image of page 1

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

View Full DocumentRight Arrow Icon
AP10–6. Req. 1 Computations: Interest: $4,000,000 x 9% = $ 360,000 Present value $ 4,000,000 x 0.7473 = 2,989,200 $ 360,000 x 4.2124 = 1,516,464 Issue Price $4,505,664 Req. 2 2009 2010 Interest expense. ..................................... $270,340* $264,960** $4,505,664 x 6% = $270,340 **[$4,505,664 - ($360,000 - $270,340)] x 6% = $264,960 Req. 3 2009 2010 Cash paid. ................................................ $360,000 $360,000 Req. 4 2009 2010 Bonds payable. ........................................ $4,416,004 $4,320,964** *$4,505,664 - $89,660 = $4,416,004 ** $4,416,004 - $95,040 = $4,320,964
Background image of page 2
E10–16. Computations: Interest: $2,000,000 x 5% = $ 100,000 Present value: $2,000,000 x 0.4350 = 870,000 $ 100,000 x 13.2944 = 1,329,440 Issue price = $2,199,440 Req. 1 January 1: Cash (+A). .............................................................................. 2,199,440 Premium on Bonds Payable (+L). ...................................... 199,440 Bonds Payable (+L). .......................................................... 2,000,000
Background image of page 3

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

View Full DocumentRight Arrow Icon
Image of page 4
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 05/10/2011 for the course ACCT 1002 taught by Professor Ng during the Spring '11 term at National University of Singapore.

Page1 / 5

tutorial_8 - AP106. Req. 1 Computations: Interest:...

This preview shows document pages 1 - 4. Sign up to view the full document.

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