AC116_UNIT_8_TEMPLATE-Joanna Aeschbacker

AC116_UNIT_8_TEMPLATE-Joanna Aeschbacker - Problem 14-2A...

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Unformatted text preview: Problem 14-2A Name: Joanna Aeschbacker Section: 4 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 ### Problem 14-3A...
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AC116_UNIT_8_TEMPLATE-Joanna Aeschbacker - Problem 14-2A...

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