Chapter 2 Problem 2-6
Requirement 1
Showing posts with label Valix Solutions. Show all posts
Showing posts with label Valix Solutions. Show all posts
Thursday, May 12, 2011
Valix Finacc vol 2 Problem 2-6
Financial Accounting Volume 2 2008 Valix-Peralta
Chapter 2 Problem 2-6
Requirement 1
Chapter 2 Problem 2-6
Requirement 1
Monday, April 11, 2011
Valix Finacc vol 2 Problem 2-5
Financial Accounting Volume 2 2008 Valix-Peralta
Chapter 2 Problem 2-5
Chapter 2 Problem 2-5
Requirement 1
2008
April 1 Cash 4,850,000
Discount on bonds payable 100,000
Bond issue cost 50,000
Bonds payable 5,000,000
Oct 1 Interest expense 300,000
Cash (5,000,000x12%x6/12) 300,000
Dec 31 Interest expense 150,000
Accrued interest payable (5,000,000x12%x3/12) 150,000
Interest expense 22,500
Discount on bonds payable (100,000/5x9/12) 15,000
Bond issue cost (50,000/5x9/12) 7,500
2009
Jan 1 Accrued interest payable 150,000
Interest expense 150,000
April 1 Interest expense 300,000
Cash 300,000
July 1 Interest expense 15,000
Discount on bonds payable (20,000x6/12) 10,000
Bond issue cost (10,000x6/12) 5,000
Retirement price (2,000,000x99%) 1,980,000
Add: Accrued interest from April to July 1, 2008
(2,000,000x12%x3/12) 60,000
Total payment 2,040,000
Bonds payable retired 2,000,000
Less: Applicable discount (2/5x75,000) 30,000
Applicable issue cost (2/5x37,500) 15,000 45,000
Book value of bonds retired 1,955,000
Less: Retirement price 1,980,000
Loss on early retirement (25,000)
July 1 Bonds payable 2,000,000
Interest expense 60,000
Loss on early retirement of bonds 25,000
Cash 2,040,000
Discount on bonds payable 30,000
Bond issue cost 15,000
Oct 1 Interest expense 180,000
Accrued interest payable (3,000,000x12%x6/12) 180,000
Dec 31 Interest expense 90,000
Accrued interest payable (3,000,000x12%x3/12) 90,000
i 31 Interest expense 9,000
Discount on bonds payable (12,000x6/12) 6,000
Bond issued cost (6,000x6/12) 3,000
Revised annual amortization
Discount (3/5x20,000) 12,000
Issue cost (3/5x10,000) 6,000
Requirement 2
Noncurrent liabilities
Bonds payable 3,000,000
Discount on bonds payable ( 39,000)
Bond issue cost ( 19,500)
Book Value 2,941,500
Tuesday, November 16, 2010
Valix Finacc vol 2 Problem 2-4
Financial Accounting Volume 2 2008 Valix-Peralta
Chapter 2 Problem 2-4
Chapter 2 Problem 2-4
Requirement 1
2008
Jan. 1 Unissued bonds payable 8,000,000
Authorized bonds payable 8,000,000
1 Cash (5,000,000 x 95%) 4,750,000
Discount on bonds payable 250,000
Unissued bonds payable 5,000,000
June 30 Interest expense (5,000,000 x 12% x 6/12) 300,000
Cash 300,000
Dec. 31 Interest expense 300,000
Cash 300,000
31 Interest expense (250,000 / 10) 25,000
Discount on bonds payable 25,000
2009
June 30 Interest expense 300,000
Cash 300,000
Sept. 1 Cash 2,100,000
Unissued bonds payable 2,000,000
Premium on bonds payable 60,000
Interest expense (2,000,000 x 12% x 2/12) 40,000
Dec. 31 Interest expense 420,000
Cash (7,000,000 x 12% x 6/12) 420,000
31 Interest expense 25,000
Discount on bonds payable 25,000
31 Premium on bonds payable 2,400
Interest expense 2,400
120 months – 20 = 100 months remaining
60,000 / 100 = 600 monthly
600 x 4 = 2,400
Requirement 2
Noncurrent liabilities:
Authorized bonds payable 8,000,000
Less: Unissued bonds payable 1,000,000
Issued bonds payable 7,000,000
Premium on bonds payable 57,600
Total 7,057,600
Discount on bonds payable ( 200,000)
Book value 6,857,600Valix Finacc vol 2 Problem 2-3
Financial Accounting Volume 2 2008 Valix-Peralta
Chapter 2 Problem 2-3
Chapter 2 Problem 2-3
Requirement 1
2008
April 1 Cash (7,000,000 x 106%) 7,420,000
Bonds payable 7,000,000
Premium on bonds payable 420,000
Oct. 1 Interest expense (7,000,000 x 12% x 6/12) 420,000
Cash 420,000
Dec. 31 Interest expense (7,000,000 x 12% x 3/12) 210,000
Accrued interest payable 210,000
31 Premium bonds payable 31,500
Interest expense (420,000 / 10 x 9/12) 31,500
2009
Jan. 1 Accrued interest payable 210,000
Interest expense 210,000
April 1 Interest expense 420,000
Cash 420,000
Oct. 1 Interest expense 420,000
Cash 420,000
Dec. 31 Interest expense 210,000
Accrued interest payable 210,000
31 Premium on bonds payable 42,000
Interest expense (420,000 / 10) 42,000
Requirement 2
Noncurrent liabilities:
Bonds payable 7,000,000
Premium on bonds payable 346,500
Book value 7,346,500
Subscribe to:
Posts (Atom)