E.

13-2
a) Sep 1
Purchases $ 50,000
Accounts Payable $ 50,000

Oct 1
Accounts Payable $ 50,000
Note Payable $ 50,000

Oct 1
Cash $ 75,000
Notes Payable $ 75,000

b) Dec, 31
Interest Expense* $ 1,000
Interest Payable $ 1,000

* (50,000 x 8%) x 3/12 = 1,000

Dec, 31
Interest Expense** $ 1,500
Notes Payable $ 1,500

** 6,000 x 3/12 = 1,500

c) The Interest - bearing note

Note Payable $ 50,000
Interest Payable $ 1,000
$ 51,000

The Zero - Interest - Bearing - Note

Note Payable $ 75,000
Interest Payable $ 1,500
$ 76,500
E13.13

A During 2015 Cash 3000000

Sales 3000000
(500 @6000)

Warranty Expense 30000

Cash, Equipment, Accrued Payroll 30000
(assurance-type warranties)

Warranty Expense 90000

Warranty Liability 90000
(120000 - 30000)

B During 2015 Cash 3000000

Sales 2840000
Unearned Warranty Revenue 160000
(service-type warranties)

Warranty Expense 30000

Cash, Inventory, Accrued Payroll 30000

Unearned Warranty Revenue 40000

Warranty Revenue 40000
(160000 x (30000/120000))
E14.11

A1 January 1st, 2015 Land, FV 300000

Notes Payable 300000

A2 Calculating the present value (PV) 400000, 8 years, 11% interest

PV = 400000 x 0.43393
PV = 173572

Calculating the present value (PV) interest payable anually of 400000, 6% interest
Interest payable = 400000 x 6%
Interest payable = 24000

PV = 24000 x 5.14612
PV = 123507

January 1st, 2015 Equipment 297079

Notes Payable 297079
(173572 + 123507)
B1 December 31st, 2015 Interest Expense 33000
Notes Payable 33000
(300000 x 11%)

B2 December 31st, 2015 Interest Expense 32679 *

Notes Payable 8679
Cash (40000 x 6%) 24000

* (297079 x 11%)
E14.14

A Present Value Principal

PV = 1500000 x 0.35218
PV = 528270

Present Value Interest 10%

PV = 150000 x 10% x 5.88923
PV = 883385

Present Value (selling price)

528270 + 883385
1411655

B AMORTIZATION SCHEDULE (10 years, 10% Bonds Sold to Yield 11%)

Date Cash Paid Interest Expense Disc. Amortized Carrying Amounts of Bonds
1/2/2012 - - - 1411655
12/31/2012 150000 155282 5282 1416937
12/31/2013 150000 155863 5863 1422800
12/31/2014 150000 156508 6508 1429308
12/31/2015 150000 157224 7224 1436532
12/31/2016 150000 158019 8019 1444551

Cash Paid = 1500000 x 10% Carrying Amounts = 1411655 + Disc. Amort.

Cash Paid = 150000
Interest Expense = 1411655 x 11%
Interest Expense = 155282
(berlaku seterusnya ditiap tahun)
Carrying Amounts = 1411655 + 5282
Carrying Amounts = 1416937
(berlaku seterusnya ditiap tahun)

Discount Amortized = Interest Expense - Cash Paid

 Discount Amortized = 155282 - 150000
Discount Amortized = 5282
(berlaku seterusnya ditiap tahun)

C 2 Jan. 2015 Bonds Payable 952872*

Loss on Extinguishment of Bonds 57128
Cash 1010000 **

* (1429308 x (1000000/1500000))
** (1000000 x 101%)