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

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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

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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
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%

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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
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