Student Name:
Class:
Cash Effective Increase in Outstanding
Pay- Payment Interest Balance Balance
ment 4.5% 5%
96,768
14,500 4,838 338 97,106
24,500 4,855 355 97,461
Cash Recorded Increase in Outstanding
Pay- Payment Interest Balance Balance
ment 4.5%
100,000 96,768
14,500 4,904 404 97,172
24,500 4,904 404 97,576
Debit Credit
Cash
Discount on bonds payable
Interest expense
(straight-line)
Cash
Discount on bonds payable
4,911 «- Correct!
BRADLEY RECREATIONAL PRODUCTS
Problem 14-03
McGraw-Hill/Irwin
Instructor
Amortization Table Straight-Line Method
BRADLEY RECREATIONAL PRODUCTS
Requirement 1:
Requirement 3:
Amortization Table at Effective Interest Rate
Interest expense
(effective interest)
Account
Requirement 2:
General Journal
BRADLEY RECREATIONAL PRODUCTS
100,000$
Given Data P14-03:
BRADLEY RECREATIONAL PRODUCTS
Bond issue
Bonds issued at
Bond annual rate of return
Bond issue – interest rate
Bond issue – term (years)
Student Name:
Class:
23,267,556$
Cash Effective
Payment Interest Increase in Outstanding
4.5% 5% Balance Balance
77,414,756
13,600,000 3,870,738 270,738 77,685,494
Cash Effective
Interest Interest Increase in Outstanding
4.5% 5% Balance Balance
77,415
13,600 3,871 271 77,686
23,600 3,884 284 77,970
Amortization Schedule
CROMLEY MOTOR PRODUCTS
Amortization Schedule
BARNWELL INDUSTRIES
Requirement 2:
McGraw-Hill/Irwin
Instructor
Interest
Requirement 1:
Problem 14-05
Cromley Motor Products
Principal
Student Name:
Class:
McGraw-Hill/Irwin
Instructor
Problem 14-05
Debit Credit
77,414,756
Debit Credit
December 31, 2016 (Cromley)
December 31, 2016 (Barnwell)
January 31, 2017 (Cromley)
January 31, 2017 (Barnwell)
Cash
Cash
Discount on bond investment
Interest revenue
Interest expense
Discount on bonds payable
Interest payable
Interest receivable
Discount bond on investment
Interest revenue
Interest expense
Interest payable
Discount on bonds payable
Cash
Interest receivable
Interest revenue
3,870,738 «- Correct!
270,738
3,600,000
Cash
February 1, 2016 (Cromley)
Account
Requirement 3:
General Journal
General Journal
July 31, 2016 (Cromley)
Requirement 4:
Account
July 31, 2016 (Barnwell)
Interest expense
Discount on bonds payable
Cash
Bonds payable
Discount on bonds payable
February 1, 2016 (Barnwell)
Cash
Discount on bond investment
Bond investment
Student Name:
Class:
McGraw-Hill/Irwin
Instructor
Problem 14-05
3,898,488 «- Correct!
298,488
3,600,000
Cash
Interest expense
Discount on bonds payable
July 31, 2017 (Cromley)
July 31, 2017 (Barnwell)
January 31, 2018 (Cromley)
January 31, 2018 (Barnwell)
Discount on bond investment
Interest revenue
Interest expense
Discount on bond investment
Interest revenue
Discount on bonds payable
Interest payable
Interest receivable
December 31, 2017 (Cromley)
December 31, 2017 (Barnwell)
Interest receivable
Interest revenue
Interest expense
Interest payable
Discount on bonds payable
Cash
Discount on bond investment
Given Data P14-05:
CROMLEY MOTOR PRODUCTS
Bond annual yield
Long-term investment by Barnwell Industries
Bond issue by Cromley Motor Products
Bond issue (years)
Bond issue interest rate
Student Name:
Class:
274,545,440$
56,820,000
Requirement 3:
Debit Credit
Discount on bonds payable
Cash
Discount on bond investment
Interest revenue
June 30, 2016 (Blanton)
16,568,272 «- Correct!
Debit Credit
December 31, 2016 (Blanton)
Discount on bonds payable
Cash
Discount on bond investment
Interest revenue
16,596,686 «- Correct!
Problem 14-07
McGraw-Hill/Irwin
Instructor
Requirement 1:
Interest
Principal
McWHERTER INSTRUMENTS
Account
December 31, 2016 (McWherter)
Interest expense
General Journal
Account
Requirement 4:
General Journal
June 30, 2016 (McWherter)
Interest expense
Debit Credit
Requirement 2:
Bonds payable
Bond investment
Discount on bond investment
Cash
General Journal
Account
January 1, 2016 (Blanton)
January 1, 2016 (McWherter)
Discount on bonds
McWHERTER INSTRUMENTS
400,000,000$
Given Data P14-07:
Bond issue by McWherter Instruments
Long-term investment by Blanton Technologies
Bond issue (years)
Bond issue interest rate
Bond annual yield
Student Name:
Class:
15,849$
Debit Credit
Notes payable
Discount on notes payable
84,150
Requirement 2:
Effective
Dec. Cash Interest Increase in Outstanding
31 Payment 10% Balance Balance
84,150
2016 5,000 8,415 3,415 87,565
Debit Credit
Discount on notes payable
Cash
9,132 «- Correct!
McGraw-Hill/Irwin
Instructor
Requirement 1 Present value (price) of note:
General Journal
A&G WAREHOUSERS
A&G WAREHOUSERS
Equipment
Amortization Schedule
Amortization Schedule
Problem 14-13
Interest
Account
Requirement 3:
Account
General Journal
A&G WAREHOUSERS
Interest expense
Principal
Student Name:
Class:
McGraw-Hill/Irwin
Instructor
Problem 14-13
84,150$
Effective
Dec. Cash Interest Decrease in Outstanding
31 Interest 10% Balance Balance
84,150
Debit Credit
Note payable
Interest expense
Cash
Amortization Schedule
General Journal
A&G WAREHOUSERS
Account
Requirement 6:
Requirement 4:
Requirement 5:
Loan Amount
100,000$
Given Data P14-13:
A&G WAREHOUSERS
Note issue
Comparison interest rate
Note issue interest rate
Term of note issue (years)