ACC620 Week6 Practice.xlsx
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1-Jan 11% bonds MV 528000 Mature 1/1/2019 Intest Payabl 31-Dec each year 2014 2015 2016 2017 2018 2019 A Cash 569074 Bonds Payable 528000 Premium on Bonds Payable 41074 B Cash Paid Interst Exp Pre. Amort. Carry Amount 1-Jan $569,074 31-Dec $58,080 $51,217 ($6,863) $562,211 31-Dec $58,080 $50,599 ($7,481) $554,730 31-Dec $58,080 $49,926 ($8,154) $546,575 C Date Account Title Debit Credit 12/31/2014 Interest Expense $51,217 Premium on Bonds Payable $6,863 Cash $58,080 D Date Account Title Debit Credit 12/31/2016 Interst Expense $49,926 Premium on Bonds Payable $8,154 Cash $58,080
Transcript of ACC620 Week6 Practice.xlsx
14-101-Jan11%bondsMV528000Sold for569074yeild9%Mature1/1/19Intest Payable31-Deceach year201420152016201720182019ACash569074 Bonds Payable528000 Premium on Bonds Payable41074BCash PaidInterst ExpPre. Amort.Carry Amount1-Jan$569,07431-Dec$58,080$51,217($6,863)$562,21131-Dec$58,080$50,599($7,481)$554,73031-Dec$58,080$49,926($8,154)$546,575
CDateAccount TitleDebitCredit12/31/14Interest Expense$51,217Premium on Bonds Payable$6,863 Cash$58,080DDateAccount TitleDebitCredit12/31/16Interst Expense$49,926Premium on Bonds Payable$8,154 Cash$58,080
14-1412%PV$803,00020yearsissuesed at97%Callable at106%any date after30-Jun-14Called on30-Jun-15issuesed at8%$1,016,000at103%Mature20yearsStraigh-line31-Decand30-JunPaymentsReacquistion PriceNet CarryLossa)1)Redemption of Old$851,180$789,751$61,4302)Sale of new$1,046,480A)1)AccountDebitCreditBonds Payable$803,000Loss on Redemption of Bonds$61,430 Discount on Bonds Payable$13,250 Cash$851,1802)Cash$1,046,480 Premium on Bonds Payable$30,480 Bonds Payable$1,016,000b) first6months interestand AmortizationInterest Expense$39,878Premium on Bonds Payable$762 Cash$40,640
14-21Owes203200plus1915010year10%accepted an old machine395100accum dep217305fv191500instead of machine grants12900sharespar$10fv191500a)13705gain on dispostion of Machinery30850gain on Restructing of Debtb)gain on dispostion of machinery and the gain on restructuring of debt should be reported as Ordinary Gainsa)1)Notes Payable$203,200Interest Payable$19,150Accumulated Deprecation$217,305TRUE Machinery$395,100 Gain on Disposal of Machinery$13,705 Gain on Restructing of Debt$30,850
2)Machinery$191,500Allowance for Doubtful Accounts$30,850 Notes Receivable$203,200 Interest Receivable$19,150b)Gain on DispostionOrdinary GainsGain on RestructingOrdinary Gainsc)1)Notes Payable$203,200Interest Payable$19,150TRUE Common Stock$129,000 Paid-In Capital$62,500 Gain on Restructuring$30,8502)Equity Investments191500Allowance for Doubtful Accounts30850 Notes Receivable203200 Interest Receivable19150
14-51/1/14$792,00010%20year102%yeild9.7705%semi-annually1-Jul1-Jan1-JanCash$807,840Amort.1-JulInterest Expense$39,465$135Cash$39,60031-DecInterest Expense$39,4581-JanCash$807,840 Bonds Payable$792,000 Premium on Bonds Payable$15,8401-JulInterest Expense$39,465Premium on Bonds Payable$135 Cash$39,60031-DecInterest Expense$39,458Preium on Bonds Payable$142 Interest Payable$39,600
14-78%$2,987,000$2,655,8071-Jan20141-Jan2019Annual1-Jan9periods1000Effective-Interest Rate9%5Total Periods1Cash PaidInterest ExpenseDiscount AmortizedCarrying Amount of Bonds1-Jan$2,655,80731-Dec$238,960$249,289$10,329$2,666,13612/31/15$238,960$250,258$11,298$2,676,46512/31/16$238,960$251,228$12,268$2,687,76312/31/17$238,960$252,289$13,329$2,700,03112/31/18$238,960$253,440$14,480$2,713,360
