annual pay ments 10926 b calc ulate the total amount

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Unformatted text preview: $" sign in your re sponse .) Annual pay ments $ 10,926 b. Calc ulate the total amount of interes t that will be earned by the fund over the 20-y ear period. (Round your FV fa ctor to 3 de cim a l pla ce s. Do not round your inte rm e dia te ca lcula tions a nd round your fina l a nsw e r to the ne a re st dolla r a m ount. Om it the "$" sign in your re sponse .) Total interes t $ 281,478 ± 2 c. Mak e the general journal entry to rec ord redemption of the bond is s ue at the end of the 20-y ear period, as s uming that the s ink ing fund is rec orded on Tilman's ac c ounting rec ords at $500,000 and bonds pay able are rec orded at the s ame amount. (Om it the "$" sign in your re sponse .) General Journal Bond pay able Debit 500,000 Bond s ink ing fund Credit 500,000 d. W hat would be the effec t of an inc reas e in the rate of return on the required annual pay ment? Reduc es the amount of pay ment required by Tilman. Explanation: a . Annual pay ment: $500,000 ÷ 45.762 (from Table FA-2) = $10,926 b. Interes t earned: $500,000 − $218,522 (...
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