ACC202WA2 - P14-1 Requirement 1 Interest 2,500,000 x...

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Requirement 1 Interest 2,500,000 x 15.04630 =37,615,750 Principal 50,000,000 x 0.09722 = 4,861,000 Present value of the bond 42,476,750 Cash. ............................................................................. 42,476,750 Discount on bonds. ........................................................ 7,523,250 Bonds payable. .......................................................... 50,000,000 Requirement 2 Interest 2,500,000 x 18.40158 = 46,003,950 Principal 50,000,000 x 0.17193= 8,596,500 Present value of the bonds 54,600,450 Cash. ............................................................................. 54,600,450 Premium on bonds. ................................................... 4,600,450 Bonds payable. .......................................................... 50,000,000 Requirement 3 Investment in bonds. ..................................................... 50,000,000 Premium on bond investment . ..................................... 4,600,450 Cash. ......................................................................... 54,600,450
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ACC202WA2 - P14-1 Requirement 1 Interest 2,500,000 x...

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