Problem 14-2A

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

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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

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## This note was uploaded on 09/24/2011 for the course ACCT 212 taught by Professor Sheik during the Spring '11 term at Mountain State.

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

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