Beruflich Dokumente
Kultur Dokumente
August 1, 2007
Cash
Discounts on Notes Payable
Notes Payable
(To record 120-day non-interest
bearing note)
November 29,2007
Interest Expense
Discount on Notes Payable
Notes Payable
$15,000.00
$600.00
$15,600.00
$150.00
$150.00
$15,600.00
Cash
To record payment of non-interest bearing note.
$15,600.00
2)
For companies to classify current liabilities into long-term debt, they have to issue new debt or securities before paying the current
It also needs to be done before issuing new financial statements or after year-end.
12/31/2006
Long-term Notes Payable
$35,000.00
Notes Payable
$35,000.00
To reverse entry
1/10/2007
Notes Payable
$35,000.00
Cash
1/11/2007
Cash
$35,000.00
$50,000.00
Notes Payable
$50,000.00
3)
A]
12/23/2006
Purchases
Accounts Payable
$12,000.00
$12,000.00
$25,000.00
$25,000.00
Purchases
Accounts Payable
$18,000.00
$18,000.00
$14,500.00
$14,500.00
A)
12/31/2006
Lawsuit Loss
Lawsuit Liability
To record lawsuit loss contingency
$450,000
$450,000
B)
12/31/2006
Lawsuit Loss
$500,000
Lawsuit Liability
$500,000 $500,000
C)
This is a gain contingency. Gain contingencies can't be accrued even if the gain
is probably and reasonably estimated. The gain should be realized only
when realized.
A)
During 2007, Sales Date
Cash
800,000
Sales
To record 2,000 kitty litter boxes that were sold.
During 2007, Repair date
Warranty Expense
Cash, Inventory,
Accrued Payroll
To record payment for repair
12/31/2007
Warranty Expense
Liabilities for Warranties
To record estimated warranty expense
800,000
6,500
6,500
93,500
93,500
B)
During 2007, Sales Date
Cash
Sales
Unearned Warranty Revenue
To record sales of optional warranties
During 2007, Repair Date
Warranty Expense
Cash, Inventory,
Accrued Payroll
To record payment for repair
12/31/2007
Unearned Warranty Revenue
Warranty Revenue
To record estimated warranty expense
1,150,000
1,000,000
150,000
7,250
7,250
$37,500
$37,500
1)
1/1/2008
Cash
$121,000.00
Premium on
Bonds Payable
To record bond issue cost and paid issue costs
June 30,2008
Bond Issue Expense
Unamortized Bond
Issue Costs
$121,000.00
$6,050.00
$6,050.00
2)
Jan 1,2007
Cash
$2,080,000.00
$80,000.00
$2,000,000.00
$92,000.00
$8,000.00
$100,000.00
$92,000.00
$8,000.00
$100,000.00
Date
Cash
Interest
1-Jul-06
1-Jan-07
1-Jul-07
1-Jan-08
1-Jul-08
1-Jan-09
1-Jul-09
1-Jan-10
1-Jul-10
1-Jan-11
$172,500
$172,500
$172,500
$172,500
$172,500
$172,500
$172,500
$172,500
$172,500
$172,500
$188,841.12
$189,372.21
$189,920.56
$190,486.73
$191,071.29
$191,674.86
$192,298.04
$192,941.48
$193,605.83
$194,291.77
CV
$5,810,496.11
$5,826,837.23
$5,843,709.44
$5,861,130.00
$5,879,116.73
$5,897,688.02
$5,916,862.88
$5,936,660.92
$5,957,102.40
$5,978,208.23
$6,000,000.00
Issue #1:
Maturity Value
Face Interest
Market Interest
Life
Bond Pays
$500,000
8.50%
12%
4 years
Semi-Annually
Cash
Interest
$21,250
$21,250
$21,250
$21,250
$21,250
$21,250
$21,250
$21,250
$26,739.78
$27,069.17
$27,418.32
$27,788.42
$28,180.72
$28,596.57
$29,037.36
$29,504.60
CV
$445,663.04
$451,152.82
$456,971.99
$463,140.31
$469,678.73
$476,609.45
$483,956.02
$491,743.38
$499,997.98
Cash
Interest
$21,250.00
$21,250.00
$21,250.00
$21,250.00
$21,250.00
$21,250.00
$21,250.00
$21,250.00
$28,042.12
$28,042.12
$28,042.12
$28,042.12
$28,042.12
$28,042.12
$28,042.12
$28,042.12
6/30/2006
Cash
Discount on Bonds Payable
Bonds Payable
To record issuance of bond
CV
$445,663.04
$452,455.16
$459,247.28
$466,039.40
$472,831.52
$479,623.64
$486,415.76
$493,207.88
$500,000.00
$445,663.04
$54,336.96
$500,000.00
6/30/2007
Interest Expense
Cash
Discount on Bonds Payable
To record second interest payment
6/30/2010
Bonds Payable
500,000.00
Cash
To record bond paid off at maturity
$27,069.17
$21,250.00
$5,819.17
500,000.00
Issue #2:
Maturity Value
Face Interest
Market Interest
Life
Bond Pays
$850,000
11.50%
8%
3 Years
Quarterly
670,216.50
258,434.87
928,651.37
Cash
Interest
$24,437.50
$24,437.50
$24,437.50
$24,437.50
$24,437.50
$24,437.50
$24,437.50
$24,437.50
$24,437.50
$24,437.50
$24,437.50
$24,437.50
18,573.03
18,455.74
18,336.10
18,214.07
18,089.61
17,962.65
17,833.15
17,701.06
17,566.34
17,428.91
17,288.74
17,145.77
CV
$928,651.37
$922,786.90
$916,805.14
$910,703.74
$904,480.31
$898,132.42
$891,657.57
$885,053.22
$878,316.78
$871,445.62
$864,437.03
$857,288.27
$849,996.54
CV
$928,651.37
$922,097.09
$915,542.81
$908,988.53
$902,434.25
$895,879.97
$889,325.69
$882,771.40
$876,217.12
$869,662.84
$863,108.56
$856,554.28
$850,000.00
3/31/2006
Cash
$928,651.37
Bonds Payable
Premium on Bonds Payable
To record second interest payment
9/30/2006
Interest Expense
Premium on Bonds Payable
Cash
To record second interest payment
3/31/2009
Bonds Payable
$850,000.00
Cash
To record bond paid off at maturity
$850,000.00
$78,651.37
$18,455.74
$5,981.76
$24,437.50
$850,000.00
ISSUE #1:
Maturity Value
Face Interest
Market Rate
Life
Bonds Pay
$2,235,000
8%
6.50%
20 Year
Semi-Annually
Interest
$84,736.24
$84,584.67
$84,428.17
$84,266.58
$84,099.75
$83,927.49
$83,749.63
$83,565.99
$83,376.39
$83,180.62
$82,978.49
$82,769.79
$82,554.31
$82,331.83
$82,102.11
$81,864.93
$81,620.04
$81,367.19
$81,106.13
$80,836.57
$80,558.26
$80,270.91
$79,974.21
$79,667.87
$79,351.58
$79,025.01
$78,687.82
$78,339.67
$77,980.21
$77,609.07
$77,225.86
$76,830.20
$76,421.69
CV
$2,607,268.86
$2,602,605.10
$2,597,789.77
$2,592,817.93
$2,587,684.52
$2,582,384.26
$2,576,911.75
$2,571,261.38
$2,565,427.38
$2,559,403.77
$2,553,184.39
$2,546,762.88
$2,540,132.68
$2,533,286.99
$2,526,218.82
$2,518,920.93
$2,511,385.86
$2,503,605.90
$2,495,573.09
$2,487,279.22
$2,478,715.79
$2,469,874.05
$2,460,744.96
$2,451,319.17
$2,441,587.04
$2,431,538.62
$2,421,163.63
$2,410,451.45
$2,399,391.12
$2,387,971.33
$2,376,180.40
$2,364,006.26
$2,351,436.46
$2,338,458.15
6/30/2017
12/31/2017
6/30/2018
12/31/2018
6/30/2019
12/31/2019
6/30/2020
$89,400.00
$89,400.00
$89,400.00
$89,400.00
$89,400.00
$89,400.00
$89,400.00
6/30/2000
Cash
$75,999.89
$75,564.39
$75,114.73
$74,650.46
$74,171.10
$73,676.16
$73,165.13
$2,607,268.86
Bonds Payable
Premium on Bonds Payable
To record issuance of bond
6/30/2001
Interest Expense
Premium on Bonds Payable
Cash
To record second interest payment
6/30/2020
Bonds Payable
Cash
To record bond paid off at maturity
$2,325,058.04
$2,311,222.43
$2,296,937.15
$2,282,187.61
$2,266,958.71
$2,251,234.87
$2,235,000.00
$2,235,000.00
$372,268.86
$84,584.67
$4,815.33
$89,400.00
$2,235,000.00
$2,235,000.00
ISSUE #2:
Maturity Value
Face Interest
Market Rate
Life
Bonds Pay
$1,785,000
3.50%
9.50%
20 Year
Semi-Annually
CV
$833,790.48
$842,158.03
$850,923.04
$860,104.38
$869,721.84
$879,796.13
$890,348.94
$901,403.02
$912,982.16
$925,111.31
$937,816.60
$951,125.39
$965,066.35
$979,669.50
$994,966.30
$1,010,989.70
$1,027,774.21
$1,045,355.98
$1,063,772.89
$1,083,064.61
$1,103,272.67
$1,124,440.63
$1,146,614.06
$1,169,840.72
$1,194,170.66
$1,219,656.26
$1,246,352.44
$1,274,316.68
$1,303,609.22
$1,334,293.16
$1,366,434.58
$1,400,102.73
$1,435,370.10
$1,472,312.68
6/30/2017
12/31/2017
6/30/2018
12/31/2018
6/30/2019
12/31/2019
6/30/2020
$31,237.50
$31,237.50
$31,237.50
$31,237.50
$31,237.50
$31,237.50
$31,237.50
6/30/2000
Cash
Discount on Bonds Payable
Bonds Payable
To record issuance of bond
6/30/2001
Interest Expense
Cash
Discount on Bonds Payable
To record second interest payment
6/30/2020
Bonds Payable
$1,785,000.00
Cash
To record bond paid off at maturity
$69,934.85
$71,772.98
$73,698.41
$75,715.31
$77,828.00
$80,041.05
$82,359.22
$1,511,010.04
$1,551,545.51
$1,594,006.43
$1,638,484.23
$1,685,074.73
$1,733,878.28
$1,785,000.00
$833,790.48
$951,209.52
$1,785,000.00
$40,002.51
$31,237.50
$8,765.01
$1,785,000.00
ISSUE #1:
Issued on
Mature on
Maturity Value
Face interest Rate
Life
Bond Pay
Issue Price
7/1/2008
6/30/2018
$1,200,000
8%
10 year
Semi-Annually
87.5378
Cash
Interest
$48,000.00
$48,000.00
$48,000.00
$48,000.00
$48,000.00
$48,000.00
$48,000.00
$48,000.00
$48,000.00
$48,000.00
$48,000.00
$48,000.00
$48,000.00
$48,000.00
$48,000.00
$48,000.00
$48,000.00
$48,000.00
$48,000.00
$48,000.00
$52,522.67
$52,748.80
$52,986.24
$53,235.56
$53,497.33
$53,772.20
$54,060.81
$54,363.85
$54,682.04
$55,016.15
$55,366.95
$55,735.30
$56,122.07
$56,528.17
$56,954.58
$57,402.31
$57,872.42
$58,366.04
$58,884.34
$59,428.56
7/1/2008
Cash
Discount on Bonds Payable
$1,050,453.60
$149,546.40
CV
$1,050,453.60
$1,054,976.27
$1,059,725.07
$1,064,711.32
$1,069,946.87
$1,075,444.21
$1,081,216.41
$1,087,277.22
$1,093,641.07
$1,100,323.12
$1,107,339.26
$1,114,706.21
$1,122,441.51
$1,130,563.58
$1,139,091.75
$1,148,046.33
$1,157,448.63
$1,167,321.05
$1,177,687.09
$1,188,571.44
$1,200,000.00
Bonds Payable
To record issuance of bond
7/1/2009
Interest Expense
Cash
Discount on Bonds Payable
To record second interest payment
7/1/2018
Bonds Payable
$1,200,000.00
Cash
To record bond paid off at maturity
$1,200,000.00
$52,748.80
$48,000.00
$4,748.80
$1,200,000.00
ISSUE #2
Issued on
Mature on
Maturity Value
Face interest Rate
Life
Bond Pay
Issue Price
Yield Rate Calculation
N
PMT
PV
FV
I
1/1/2008
12/31/1012
$2,000,000
12%
5-Year
Semi-Annually
105.35
10
$120,000.0
$2,107,000.00
2,000,000
5%
Cash
Interest
$120,000.00
$120,000.00
$120,000.00
$120,000.00
$120,000.00
$120,000.00
$120,000.00
$120,000.00
$120,000.00
$120,000.00
$111,610.28
$111,165.87
$110,697.91
$110,205.17
$109,686.33
$109,140.00
$108,564.73
$107,958.99
$107,321.17
$106,649.55
1/1/2008
Cash
$2,107,000.00
Bonds Payable
Premium on Bonds Payable
To record issuance of bond
1/1/2009
Interest Expense
Premium on Bonds Payable
Cash
To record second interest payment
1/1/2014
CV
$2,107,000.00
$2,098,610.28
$2,089,776.15
$2,080,474.06
$2,070,679.23
$2,060,365.56
$2,049,505.56
$2,038,070.29
$2,026,029.28
$2,013,350.45
$2,000,000.00
$2,000,000.00
$107,000.00
$111,165.87
$8,834.13
$120,000.00
Bonds Payable
$2,000,000.00
Cash
To record bond paid off at maturity
$2,000,000.00