ku Acc 116 unit 8 homework

# ku Acc 116 unit 8 homework - the appropr iate account...

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Problem 14-2A Name: Pamela Bates Section: 08 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 \$ 32,000,000 Present value factor from interest tables 0.283800 \$ 9,081,600 Semi-annual interest payment \$ 1,920,000 Present value factor from interest tables 11.018510 21,155,539 Proceeds of bond issue \$ 30,237,139

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Problem 14-3A Name: Pamela Bates Section: 08 Enter

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Unformatted text preview: the appropr iate account titles and amount s in the shaded cells below. A red asterisk (*) will appear to the right of an incorrec t amount in the outlined cells. JOURN AL Descrip tion Debit Credit 1. Cash 3,461,1 81 Pre mium on Bonds Payabl 461,18 1 e Bo nds Payabl e 3,000,0 00 2. a. Interest Expens e 164,62 7 Premiu m on Bonds Payabl e 15,373 Ca sh 180,00 0 b. Interest Expens e 164,62 7 Premiu m on Bonds Payabl e 15,373 Ca sh 180,00 0 3. Total interest expens e for 2010: \$ 164,62 7 4. Will the bond procee ds always be more than the face amount of the bonds when the contract rate is more than the market Yes rate of interest ? 5. Face amount of bond issue \$ 3,000,0 00 Present value factor from interest tables 0.2313 80 \$ 694,14 0 Semi-annual interest paymen t \$ 180,00 0 Present value factor from interest tables 15.372 450 2,767,0 41 Procee ds of bond issue \$ 3,461,1 81...
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## This note was uploaded on 07/10/2011 for the course AC116 AC116 taught by Professor Janowich during the Spring '10 term at Kaplan University.

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ku Acc 116 unit 8 homework - the appropr iate account...

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