英财 2013第十章答案.docVIP

Ex. 10.10 a. 2007 　 　 　 　 　 July 1 Cash …………………………………………………………… 4,900,000 　 　 　 　 Discount on Bonds Payable …………………………………. 100,000 　 　 　 　 　 Bonds Payable ……………………………………….. 　 5,000,000 b. 2007 　 　 　 　 　 Dec. 31 Bond Interest Expense ………………………………………. 240,000 　 　 　 　 　 Discount on Bonds Payable ……………………………. 　 2,500 　 　 　 　 Cash …………………………………………………. 　 237,500 　 　 　 Semiannual interest payment: 　 　 　 　 　 　 $5,000,000 x 9 1/2% x 1/2 …….. $237,500 　 　 　 　 　 Add discount amortized: 　 　 　 　 　 　 [$100,000 ? 20 yrs.] x 1/2 …… 2,500 　 　 　 　 　 Interest expense $240,000 　 　 　 　 　 　 　 　 　 　 c. 2027 　 　 　 　 　 　 June 30 Bond Interest Expense …………………………………………. 240,000 　 　 　 　 　 Discount on Bonds Payable …………………………… 　 2,500 　 　 　 　 Cash ……………………………………………………… 　 237,500 　 　 　 　 　 　 　 　 　 June 30 Bond Payable ……………………………………………….. 5,000,000 　 　 　 　 　 Cash ………………………………………………… 　 5,000,000 　 　 　 　 　 　 　 　 d. (1) Amortization of bond discount increases annual interest expense and, consequently, reduces annual net income. 　 　 　 　 　 　 　 　 　 　 (2) Amortization of bond discount is a noncash component of annual interest expense and has no effect upon annual net cash flow from operating activities. (Receipt of cash upon issuance of bonds and payment of cash to retire bonds at maturity are both classified as financing activities.) 25 Minutes, Medium 　 PROBLEM 10.3A SWANSON CORPORATION 　 　 　 　 　 　 a. 20__ 　 　 Aug 6 Cash 　 　 12,000 　 Notes Payable 　 12,000 　 　 　 Sept 16 Office Equipment 18,000 　 　 　 Notes Payable 　 　 18,000 　 　 　 　 　 　 　 Sept 20 Notes Payable 12,000 　 　 　 Interest Expense 180 　 　 　 　 Cash 　 　 12,180 　 　 　 　 　 　 　 Nov 1 Cash 　 　 250,000 　 　 　 　 Notes Payable 　 　 250,000 Dec 1 Inventory 5,000