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Unformatted text preview: 180000 2767041 Proceeds of bond issue 3461181 1) Cash 3,461,181 Premium on Bonds Payable 461,181 Bonds Payable 3000000 2.a) Interest expense 164627 Premium on Bonds Payable 15373 Cash 180000 2.b) Interest Expense 164627 Premium on Bonds Payable 15373 Cash 180000 3) Total expense for 2010 is $164627 4) Yes. The bond proceeds will always be greater than the face amount of the bonds when the contract rate is greater than the market rate of interest Bancroft Corporation. Retained Earnings Statement For the Year Ended January 31, 2010 Retained earnings, February 1, 2010 3175500 Net Income 415000 Less Dividends: Stock 140000 Cash 75500 215500 Increased in retained earnings 199500 Retained earnings, January 1, 2010 3375000...
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This note was uploaded on 03/26/2012 for the course ACCOUNTING 1A,1B,1C taught by Professor Spinozzi during the Summer '10 term at DeAnza College.
- Summer '10