Copy of CH 6 examples

Copy of CH 6 examples - Cash down 7,500,000 Land 8,000,000...

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BONDS: Face Value 1,000,000 Stated Rate 6% Market 8% Period 5 years Annual payment 60,000 PVLS 680,583 PVOA 239,563 920,146 920,146 JE DATE OF SALE: Cash 920,146 Bond Payable 1,000,000 Discount on B/P 79,854 Payment Interest Exp Bond Payable Discount B/P, Net 1,000,000 79,854 920,146 1 60,000 73,612 1,000,000 66,243 933,757 2 60,000 74,701 1,000,000 51,542 948,458 3 60,000 75,877 1,000,000 35,665 964,335 4 60,000 77,147 1,000,000 18,519 981,481 5 60,000 78,519 1,000,000 0 1,000,000 5 1,000,000 - - Y1 JE: Cash 60,000 Interest exp. 73,612 Discount on b/p 13,612 Y2 JE: Cash 60,000 Interest exp. 74,701 Discount on b/p 14,701
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Unformatted text preview: Cash down 7,500,000 Land 8,000,000 Note 2,500,000 Stated Rate - Period 5 Market Rate 10% 1,052,303 PV Note 1,552,303 PV cash 7,500,000 9,052,303 je on sale date Cash 7,500,000 Note receivable 2,500,000 Imputed interest 947,697 Land 8,000,000 Gain on sale 1,052,303 YR 1: Imputed interest 155,230 Interest income 155,230 1,707,534 YR 2: Imputed interest 170,753 1,878,287 Interest income 170,753 YR3: Imputed interest 187,829 2,066,116 Interest income 187,829 YR 4: Imputed interest 206,612 2,272,727 Interest income 206,612 YR5" Imputed interest 227,273 2,500,000 Interest income 227,273 Cash 2,500,000 Note receibable 2,500,000...
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Copy of CH 6 examples - Cash down 7,500,000 Land 8,000,000...

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