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AC116 Pr 14-2A and 14-3A - UNIT 8

AC116 Pr 14-2A and 14-3A - UNIT 8 - A red asterisk will...

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Problem 14-2A Name: Joey D. Finley Section: Unit 8 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 ### ### Semi-annual interest payment $1,920,000 ### Present value factor from interest tables ### ### Proceeds of bond issue $30,237,139 ###
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Problem 14-3A Name: Joey D. Finley Section: Unit 8 Enter the appropriate account titles and amounts in the shaded cells below.
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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 $180,000 ### Present value factor from interest tables ### ### Proceeds of bond issue $3,461,181 ###...
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