P 14-15 - Name: Problem: Course: Date: P14-5, Comprehensive...

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Name: Problem: P14-5, Comprehensive Bond Problem Course: Date: 1. Sanford Co. sells $500,000 of 10% bonds on M bonds pay interest on September 1 and March 1. The due date of the bonds is September 1 The bonds yield 12% Give the entries through December 31, 2011. Mar 1, 10 Cash 472,090 Discount on Bonds Payable 27,920 Bonds Payable Maturity value of bonds payable $500,000 Present value of $250,000 due in 7 periods at 6% 332,530 Present value of interest payable semiannually 139,560 Proceeds from sale of bonds (472,090) Discount on bonds payable $27,910 Sep 1, 10 Interest Expense 28,325 Discount on Bonds Payable Cash Dec 31, 10 Interest Expense 19,017 Discount on Bonds Payable Cash Note: Amortization table is semi-annual, interest rate is s Mar 1, 11 Interest Expense 9,508 Interest Payable 16,667 Discount on Bonds Payable Cash Sep 1, 11 Interest Expense 28,736 Discount on Bonds Payable Interest Payable Dec 31, 11 Interest Expense 19,308 Discount on Bonds Payable Interest Payable Instructions: (Round to the nearest dollar.) ( Note: Calculations with financial calculators or tables might result in slightly different values
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P 14-15 - Name: Problem: Course: Date: P14-5, Comprehensive...

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