ACCOUNTINGII A SSIGNMENT SUBMITTEDBY: SYEDHUSNAINA LI
14-6A n = 3 years × 2 periods per year = 6 FV = -4900000 PMT = -171500 (a) i = 8% ÷ 2 periods/year = 4 As on dateACash Int Amt4900000x3.5%BInterestExpense(E) x 4%CDiscount.(B)-(A)DUnamortizedDisE Carrying Value $4900,000 - (D) 01 Jun 20201285104771490 01 Dec 2020171500190859193591091504790850 01 Jun 202117150019163420134890164810984 01 Dec 202117150019243920939680774831923 01 Jun 202217150019327721777463004853700 01 Dec 202217150019414822648236524876348 01 Jun 20231715001950532355404900000 Total1157410
14-7A a) n = 6 i = 12% × 6/12 PV of face amount of$4900,000× .7903 = $3872470 PV of interest annuity of$171,500 (= $4900,000 × 7%× 6/12) × 5.2421 = 899020 Total issue price$4771490 PV = $4900000 PV = $4771490 (Cash) 01 Jun 20 Cash A/C Dr4771490 Discount on Bonds payable A/C Dr128510 To Bond PayableCr4900000 (Bond issued at a discount price) b) Cash Int Paid = 4900000x3.5% = 171500 01 Dec 2020 Interest Expense A/C.DR171500 To Cash A/CCR171500 (Interest paid in Cash)
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