Problem 14-2A - MatthewMcCoy Problem142A Jan.1 2009 Cash...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
Matthew McCoy Problem 14-2A 2009 Jan. 1 Cash 3,024,000 Discount on Bonds Payable 476,000           Bonds Payable 3,500,000      Sold bonds at a discount on their issue date. Interest Computations Amount repaid to bondholders    Thirty interest payments of $140,000 4,200,000    Par value at maturity 3,500,000    Total repaid to bondholders 7,700,000 Less amount borrowed from bondholders (3,024,000) Total bond interest expense 4,676,000 4,676,000 = 155,867    (per interest period)           Number of interest periods 30 2009-2023 June 30 and Bond Interest Expense 155,867 Dec. 31           Discount on Bonds Payable 15,867           Cash 140,000      To record semiannual interest and discount      amortization (straight-line method). Semiannual  Unamortized    Carrying Period- End Discount    Value 0 1/1/2009 476,000 3,024,000 1 6/30/2009 460,133 3,039,867 2 12/31/2009
Background image of page 1

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

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

Page1 / 2

Problem 14-2A - MatthewMcCoy Problem142A Jan.1 2009 Cash...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online