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ACC 551 P 14-2

# ACC 551 P 14-2 - PartA \$2,000,000*0.38554(PV10,10 \$771,080...

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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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ACC 551 P 14-2 - PartA \$2,000,000*0.38554(PV10,10 \$771,080...

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