136B Notes 2_8_11

136B Notes 2_8_11 - 136B Notes: 2/8/11 -Problem 14-9 (From...

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136B Notes: 2/8/11 --------------------------------- Problem 14-9 (From Handout) A) PV of N/P at 12/31/06: $30,000 x 3.31213 = 99,364 $ PVOA:4,8% + Down Payment 40,000 $ Amount paid for machinery 139,364 $ J/E: Machinery 139,364 $ Discount 20,636 $ [120,000 - 99,364] Cash 40,000 $ N/P 120,000 $ [4 x 30,000] Amortization Schedule 8% 10% (FV-Unam disc) Date Payment Eff. Int. Stated Int. Disc. Amort. CV of N/P 12/31/06 - $ - $ - $ - $ 99,364 $ 12/31/07 30,000 $ 7,949 $ - $ 7,949 $ 77,313 $ [8% of $99,364] 12/31/08 30,000 $ 6,185 $ - $ 6,185 $ 53,498 $ 12/31/09 30,000 $ 4,280 $ - $ 4,280 $ 27,778 $ 12/31/10 30,000 $ 2,222 $ - $ 2,222 $ - $ 120,000 $ 20,636 $ - $ 20,636 $ - $ B-C) [[Journal Entries]] 12/31/07 12/31/08 12/31/09 12/31/10 N/P 30,000 30,000 30,000 30,000 Cash 30,000 30,000 30,000 30,000 Int. Exp 7,949 6,185 4,280 2,222 Disc. 7,949 6,185 4,280 2,222 -------------------------------------------------- Appendix 14A: Troubled Debt Restructuring 1) Settlement of Debt at less than CV Through debtor giving creditor noncash assets or stock
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This note was uploaded on 02/22/2012 for the course ACCT 1320 taught by Professor Staff during the Spring '11 term at Texas State.

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136B Notes 2_8_11 - 136B Notes: 2/8/11 -Problem 14-9 (From...

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