ACC 551 P 14-2 - PartA...

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Part A Calculation of Present Value of the Principal $2,000,000 * 0.38554 (PV10, 10%)  $771,080 Calculation of Present Value of the Interest Payments $210,000 * 6.14457 (PVOA10, 10%)  $1,290,360 *$2,000,000 * 10.5% = $210,000 Calculations of Present Value  = Present Value of the Principal + Present Value of the Interest Payments  = $771,080 + $1,290,360 = $2,061,440 Dr. Cash $2,011,440 Dr. Unamortized Bond Issue Costs $50,000 Cr. Bonds Payable $2,000,000 Cr. Premium Bonds Payable $61,440 Part B Date Cash Paid Interest Payment Premium  Amortization Carrying Amount of  Bonds 1/ 1/ 2009 2,061,440.00 $           1/ 1/ 2010 210,000.00 $              206,144.00 $              3,856.00 $                  2,057,584.00 $           1/ 1/ 2011 210,000.00 $              205,758.40 $              4,241.60 $                  2,053,342.40
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This note was uploaded on 03/01/2012 for the course ACCOUTNING 550 taught by Professor Abner during the Spring '11 term at DeVry Houston.

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ACC 551 P 14-2 - PartA...

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