AC116_Unit 8 - Problem 14-2A Name: Section: Enter the...

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Problem 14-2A Name: Section: Enter the appropriate account titles and amounts in the shaded cells below. A red asterisk (*) will appear to the right of an incorrect amount in the outlined cells. JOURNAL Description Debit Credit 1. Cash Err 30,237,139 Err:511 Err:511 Discount on Bonds Payable Err 1,762,861 Err:511 Err:511 Bonds Payable Err:511 Err: 32,000,000 Err:511 2. a. Interest Expense Err 2,008,143 Err:511 Err:511 Discount on Bonds Payable Err:511 Err: 88,143 Err:511 Cash Err:511 Err: 1,920,000 Err:511 b. Interest Expense Err 2,008,143 Err:511 Err:511 Discount on Bonds Payable Err:511 Err: 88,143 Err:511 Cash Err:511 Err: 1,920,000 Err:511 3. Total interest expense for 2010: $2,008,143 Err:511 4. Will the bond proceeds always be less than the face amount of the bonds when the contract rate is less than the market rate of interest? Yes Err:511 5. Face amount of bond issue $32,000,000 Err:511 Present value factor from interest tables 0.283800 Err: $9,081,600 Err:511 Semi-annual interest payment
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This note was uploaded on 03/27/2012 for the course ACCT AC116 taught by Professor Hobbs,j during the Spring '10 term at Kaplan University.

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AC116_Unit 8 - Problem 14-2A Name: Section: Enter the...

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