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AC116_Unit 8

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 \$1,920,000 Err:511 Present value factor from interest tables 11.018510 Err: 21,155,539 Err:511 Proceeds of bond issue \$30,237,139 Err:511

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Problem 14-3A Name: Section: Enter the appropriate account titles and amounts in the shaded cells below.
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AC116_Unit 8 - Problem 14-2A Name Section Enter the...

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