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y Winklevoss Inc., who

y Winklevoss Inc., who

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Instructions June Paid the semiannual interest on the bonds. The bond discount amortization of $322,153 is combined with the semiannual interest payment. Sept. 30 Paid the annual payment on the note, which consisted of interest of $30,800 and principal of $61,510, 31 Accrued $6,624 of interest on the installment note. The interest is payable on the date of the next Dec. installment note payment. Paid the semiannual interest on the bonds. The bond discount amortization of $322,153 is combined 31 with the semiannual interest payment. Year 3 பne 30 Recorded the redemption of the bonds, which were called at 98. The balance in the bond discount account is $11,597,527 after payment of interest and amortization of discount have been recorded. Record the redemption only. Sept. 30 Paid the second annual pavment on the note which consisted of interest of S26.494 and principal of 30
Transcribed Image Text:Instructions June Paid the semiannual interest on the bonds. The bond discount amortization of $322,153 is combined with the semiannual interest payment. Sept. 30 Paid the annual payment on the note, which consisted of interest of $30,800 and principal of $61,510, 31 Accrued $6,624 of interest on the installment note. The interest is payable on the date of the next Dec. installment note payment. Paid the semiannual interest on the bonds. The bond discount amortization of $322,153 is combined 31 with the semiannual interest payment. Year 3 பne 30 Recorded the redemption of the bonds, which were called at 98. The balance in the bond discount account is $11,597,527 after payment of interest and amortization of discount have been recorded. Record the redemption only. Sept. 30 Paid the second annual pavment on the note which consisted of interest of S26.494 and principal of 30
Instructions The following transactions were completed by Winklevoss Inc., whose fiscal year is the calendar year. Year 1 July 1 Issued $75,100,000 of 20-year, 8% callable bonds dated July 1, Year 1, at a market (effective) rate of 10%, receiving cash of $62,213,861. Interest is payable semiannually on December 31 and June 30. Oct. 1. Borrowed $440,000 by issuing a six-year, 7% installment note to Nicks Bank. The note requires annual payments of $92,310, with the first payment occurring on September 30, Year 2. Dec. 31 Accrued S7,700 of interest on the installment note. The interest is payable on the date of the next installment note payment. 31 Paid the semiannual interest on the bonds. The bond discount amortization of S322,153 is combined with the semiannual interest payment, Year 2
Transcribed Image Text:Instructions The following transactions were completed by Winklevoss Inc., whose fiscal year is the calendar year. Year 1 July 1 Issued $75,100,000 of 20-year, 8% callable bonds dated July 1, Year 1, at a market (effective) rate of 10%, receiving cash of $62,213,861. Interest is payable semiannually on December 31 and June 30. Oct. 1. Borrowed $440,000 by issuing a six-year, 7% installment note to Nicks Bank. The note requires annual payments of $92,310, with the first payment occurring on September 30, Year 2. Dec. 31 Accrued S7,700 of interest on the installment note. The interest is payable on the date of the next installment note payment. 31 Paid the semiannual interest on the bonds. The bond discount amortization of S322,153 is combined with the semiannual interest payment, Year 2
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