400DA000 - Student Name: Class: Problem 14-15 A&G...

Info iconThis preview shows pages 1–5. Sign up to view the full content.

View Full Document Right Arrow Icon
Student Name: Class: Problem 14-15 A&G WAREHOUSERS Amortization Schedule Requirement 1 Present value (price) of note: Interest $15,849 Principal 68,301 Present value (price) of the note $84,150 «- Correct! A&G WAREHOUSERS General Journal Account Debit Credit Equipment 84,150 Discount on note payable 15,850 Note Payable 100,000 Requirement 2: Amortization Schedule Dec. Cash Interest Increase in Outstanding 31 Interest 10% Balance Balance 84,150 2009 5,000 8,415 3,415 87,565 2010 5,000 8,757 3,757 91,322 2011 5,000 9,132 4,132 95,454 2012 5,000 9,546 4,546 100,000 20,000 35,850 15,850 *rounded Correct! Correct! Correct! Requirement 3: A&G WAREHOUSERS General Journal Account Debit Credit Interest Expenses 9,132 Discount on note payable 4,132 Cash 5,000
Background image of page 1

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

View Full DocumentRight Arrow Icon
Student Name: Class: Problem 14-15 Requirement 4: Loan Amount $84,150 Multiplier 3.16987 Installment Payment $26,547 Correct! Requirement 5: Amortization Schedule Effective Dec. Cash Interest Increase in Outstanding 31 Interest 10% Balance Balance 84,150 2009 26,547 8,415 18,132 66,018 2010 26,547 6,602 19,945 46,073 2011 26,547 4,607 21,940 24,133 2012 26,547 2,413 24,134 0 106,188 22,038 84,150 *rounded Correct! Correct! Correct! Requirement 6: A&G WAREHOUSERS General Journal Account Debit Credit Interest Payable A/c---------Dr 4,607 Note payable A/c------------Dr 21,940 To Cash A/c 26,547
Background image of page 2
Given Data P14-15: A&G WAREHOUSERS Note issue $100,000 Term of note issue (years) 4 Note issue interest rate 5% Comparison interest rate 10%
Background image of page 3

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

View Full DocumentRight Arrow Icon
Please Press F2 to see the Computation how to derived the value Problem 14-21 P 14-21 Report bonds at fair value; quarterly reporting LO6 31-Mar $350,000 30-Jun $340,000 30-Sep $335,000 31-Dec $342,000 Requirement 1 Required: 1. By how much will Appling's earnings be increased or decreased by the
Background image of page 4
Image of page 5
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 05/21/2011 for the course ACCT 101 taught by Professor Archie during the Spring '11 term at Rasmussen College.

Page1 / 11

400DA000 - Student Name: Class: Problem 14-15 A&G...

This preview shows document pages 1 - 5. Sign up to view the full document.

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