Rich Pugh unit 8 exercises

Rich Pugh unit 8 exercises - A red asterisk (*) will appear...

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

View Full Document Right Arrow Icon
Problem 14-2A Name: Section: 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 ### Present value factor from interest tables ### ### Semi-annual interest payment ### Present value factor from interest tables ### ### Proceeds of bond issue $30,237,139 ###
Background image of page 1

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

View Full DocumentRight Arrow Icon
Background image of page 2
Problem 14-3A Name: Section: Enter the appropriate account titles and amounts in the shaded cells below.
Background image of page 3

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

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

Unformatted text preview: 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 ### ### Semi-annual interest payment ### Present value factor from interest tables ### ### Proceeds of bond issue $3,461,181 ###...
View Full Document

This note was uploaded on 06/26/2011 for the course ACCOUNTING AC300 taught by Professor Jean during the Spring '08 term at Kaplan University.

Page1 / 4

Rich Pugh unit 8 exercises - A red asterisk (*) will appear...

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