Current liability g Bonds payable of 2000000 maturing Current

Current liability g bonds payable of 2000000 maturing

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Current liability (g) Bonds payable of $2,000,000 maturing June 30, 2014. Current liability
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(h) Overdraft of $1,000 in a bank account. (No other balances are carried at th bank.) Current liability (i) Deposits made by customers who have ordered goods. Current liability E14-2 Your answer is correct. Classification Indicate how each of the following items should be classified in the financial statements. (a) Discount on bonds payable Contra to bonds payable (b) Interest expense (credit balance) Interest payable (c) Unamortized bond issue costs Other Assets (d) Gain on repurchase of debt Other gains and losses (e) Mortgage payable (payable in equal amounts over next 3 years) Part as current liability and part as long term liability (f) Debenture bonds payable (maturing in 5 years) Long-term liability (g) Premium on bonds payable Adjunct to bonds payable (h) Notes payable (due in 4 years) Long-term liability (i) Income bonds payable (due in 3 years) Long-term liability
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E14-7 Your answer is correct. (Amortization Schedule— Effective Interest) Spencer Company sells 10% bonds having a maturity value of $3,000,000 for $2,783,724. The bonds are dated January 1, 2012, and mature January 1, 2017. Interest is payable annually on January 1. Set up a schedule of interest expense and discount amortization under the effective interest method. (Hint: The effective interest rate must be computed rounded to the nearest whole percent). (Round all answers to 2 decimal places, e.g. 45,310.20. Use rounded amounts for successive computations. In using your calculator, be sure that the rounded amounts are in the calculators memory.) Schedule of Discount Amortization Year Cash Paid (1) (2) Jan. 1, 2012 Dec. 31, 2012 $ 300000 Dec. 31, 2013 300000 Dec. 31, 2014 300000 Dec. 31, 2015 300000 Dec. 31, 2016 300000 *Adjusted to compensate for the
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cumulative effect of rounding. *AE14-20 Your answer is correct. (Long-Term Debt Disclosure) At December 31, 2012, Redmond Company has outstanding three long-term debt issues. The first is a $2,173,900 note payable which matures June 30, 2015. The second is a $6,040,600 bond issue which matures September 30, 2016. The third is a $12,637,200 sinking fund debenture with annual sinking fund payments of $2,527,440 in each of the years 2014 through 2018. Prepare the note disclosure for the long-term debt at December 31, 2012. (If answer is zero, please enter 0, do not leave any fields blank.) Maturities and Sinking Fund Requirements on Long-term Debt December 31, 2012 Year 2013 2014 2015 2016 2017 Print by: ZACH DUCHESNE Acct 3011 - 60052- 201260 Intermediate Accounting II / 14 LTD HW P14-1
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(Analysis of Amortization Schedule and Interest Entries) The following amortization and interest schedule reflects the issuance of 10-year bonds by Capulet Corporation on January 1, 2006, and the subsequent interest payments and charges. The company's year-end is December 31, and financial statements are prepared once yearly. Year Cash 1/1/2006 $11,000 2006 11,000 2007 11,000 2008 11,000 2009 11,000 2010 11,000 2011 11,000 2012 11,000 2013 11,000 2014 11,000 2015 11,000 Your answer is correct. Indicate whether the bonds were issued at a premium or a discount? Discount Your answer is correct.
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