P11-7A Individual - 2 Bond Interest Expense 3,501,514 x 0.05 = 175,076 Bond Interest payable 4,000,000 x 0.04 = 160,000 3 Bond Interest

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P11-7A A 1) July 1 Cash 3,501,514.00 Discount On Bonds Payable 498,486.00 Bonds Payable 4,000,000.00 2) Dec. 31 Bond Interest Expense 175,076.00 Discount on Bonds Payable 15,076.00 Bond Interest Payable 160,000.00 3) July 1 Bonds Interest Expense 175,830.00 Discount on Bonds Payable 15,830.00 Cash 160,000.00 4) Dec 31 Bonds Interest Expense 176,621.00 Discount on Bonds Payable 16,621.00 Bonds Interest Payable 160,000.00 Calculations 1 Discount on bonds Payable: 4,000,000 - 3,501,514 = 498,486
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Unformatted text preview: 2 Bond Interest Expense: 3,501,514 x 0.05 = 175,076 Bond Interest payable: 4,000,000 x 0.04 = 160,000 3 Bond Interest Expense: (3,501,514 + 15,076) x 0.05 = 175,830 4 Bond Interest Expnese: (3,516,590 + 15,830) x 0.05 = 176,621 B Balance Sheet Bonds payable 4,000,000.00 Discount on Bonds payable 450,959.00 3,549,041.00 Calculations Discount on Bonds Payable: 498,486 - 15,076 - 15,830 - 16,621 = 450,95 C See word document…. 59...
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This note was uploaded on 06/24/2011 for the course ACCOUNTING 281 taught by Professor Prof.robinson during the Spring '10 term at University of Phoenix.

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P11-7A Individual - 2 Bond Interest Expense 3,501,514 x 0.05 = 175,076 Bond Interest payable 4,000,000 x 0.04 = 160,000 3 Bond Interest

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