I-13.06 Worksheet

I-13.06 Worksheet - -Revised carrying value as of June 30,...

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Name: Date: Section: I-13.06 (a) Initial carrying value of bonds - $ Effective interest rate X 0.04 Effective interest cost - $ Less cash paid (3% X $1,000,000) - Amortization for Jan. 1 to June 30, 20X5 - $ Plus: Carrying value before periodic amortization - Revised carrying value as of June 30, 20X5 - $ Effective interest rate X 0.04 Effective interest cost - $ Less cash paid (3% X $1,000,000) - Amortization for July 1 to Dec. 31, 20X5 - $ Plus: Carrying value before periodic amortization - Revised carrying value as of Dec. 31, 20X5 - $ Effective interest rate X 0.04 Effective interest cost - $ Less cash paid (3% X $1,000,000) - Amortization for Jan. 1 to June 30, 20X6 - $ Plus: Carrying value before periodic amortization
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Unformatted text preview: -Revised carrying value as of June 30, 20X6-$ Effective interest rate X 0.04 Effective interest cost-$ Less cash paid (3% X $1,000,000)-Amortization for July 1 to Dec. 31, 20X6-$ Plus: Carrying value before periodic amortization-Revised carrying value as of Dec. 31, 20X6-$ 1 of 2 Name: Date: Section: I-13.06 (b) GENERAL JOURNAL Date Accounts Debit Credit 31-Dec 31-Dec (c) Periodic interest payments ($1,000,000 X 3%)-$ Present value factor (16-period annuity, 2.5%) X--$ Maturity value 1,000,000 $ Present value factor (16 periods, 2.5%) X--$ Price of bond at 5%, 8 years to maturity-$ 2 of 2...
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This note was uploaded on 02/29/2012 for the course ACCOUNTING 101 taught by Professor Hudack during the Spring '11 term at FIU.

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I-13.06 Worksheet - -Revised carrying value as of June 30,...

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