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P14-02A

Student Name: Jamie Schultea
Class:
Problem 14-02A
HEATHROW
General Journal
Part 1.
Date Account Titles Debit Credit
2011
Jan 1 Cash 1,728,244
Discount on Bonds Payable 271,776 «- Correct!
Bonds Payable 2,000,000
Sold bonds on stated issue date.
Part 2.
Cash payment $ 60,000 «- Correct!
Straight-line discount amortization 9,059 «- Correct!
Bond interest expense 69,059 «- Correct!
Part 3.
Thirty payments of $60,000 $ 1,800,000
Par value at maturity 2,000,000
Total repaid $ 3,800,000
Less amount borrowed 1,728,224
Total bond interest expense $ 2,071,776 «- Correct!
or:
Thirty payments of $60,000 $ 1,800,000
Plus discount 271,776
Total bond interest expense $ 2,071,776 «- Correct!
Part 4.
HEATHROW
Unamortized Carrying
Semiannual Interest Period Discount Value
1/1/11 $ 271,776 1,728,224 «- Correct!
6/30/11 262,717 1,737,283 «- Correct!
12/31/11 253,658 1,746,342 «- Correct!
6/30/12 244,598 1,755,401 «- Correct!
12/31/12 235,539 1,764,460 «- Correct!
HEATHROW
General Journal
Part 5.
Date Account Titles Debit Credit
2011
Jun 30 Bond Interest Expense 69,059
Discount on Bonds Payable 9,059 «- Correct!
Cash 60,000 «- Correct!
To record six months' interest and discount amortization.
2011
Dec 31 Bond Interest Expense 69,059
Discount on Bonds Payable 9,059 «- Correct!
Cash 60,000 «- Correct!
To record six months' interest and discount amortization.
Enter appropriate data in yellow cells. Your entries will be verified.
Enter appropriate data in yellow cells. Your entries will be verified.
Enter appropriate data in yellow cells. Your entries "Total bond interest expense" will be verified.
Enter appropriate data in yellow cells. Your entries "Carrying Value" will be verified.
Enter appropriate data in yellow cells. Your Credit entries will be verified.
Enter appropriate data in yellow cells. Your entries "Total bond interest expense" will be verified.

Given P14-02A

Given Data P14-02A:
HEATHROW
Bonds issued, face value $ 2,000,000
Annual interest 6%
Maturity in years 15
Issuance price $ 1,728,224
Check figures:
(3) $ 2,071,776
(4) 12/31/2012 carrying value $ 1,764,460

P14-03A

Student Name:
Class:
Problem 14-03A
HEATHROW
General Journal
Part 1
Date Account Titles Debit Credit
2011
Jan 1 Cash 3,549,590
Premium on Bonds Payable 2,900,000 «- Try again!
Bonds Payable 649,590
Sold bonds on issue date at a premium.
Part 2
Cash payment $ 60,000
Straight-line premium amortization 9,059
Bond interest expense 108,847 «- Try again!
Part 3
Thirty payments of $60,000
Par value at maturity
Total repaid
Less amount borrowed
Total bond interest expense 0
or:
Thirty payments of $60,000
Less premium
Total bond interest expense 0
Part 4
HEATHROW
Unamortized Carrying
Semiannual Interest Period Premium Value
1/1/11 0
6/30/11 0
12/31/11 0
6/30/12 0
12/31/12 0
HEATHROW
General Journal
Part 5
Date Account Titles Debit Credit
2011
Jun 30 Bond Interest Expense 108,847 «- Try again!
Premium on Bonds Payable 21,653 «- Try again!
Cash 130,500
To record six months' interest and premium amortization.
2011
Dec 31 Bond Interest Expense 0
Premium on Bonds Payable 0
Cash
To record six months' interest and premium amortization.
Enter appropriate data in yellow cells. Your entries will be verified.
Enter appropriate data in yellow cells. Your entries will be verified.
Enter appropriate data in yellow cells. Your entries "Total bond interest expense" will be verified.
Enter appropriate data in yellow cells. Your entries "Carrying Value" will be verified.
Enter appropriate data in yellow cells. Your Debit entries will be verified.
Enter appropriate data in yellow cells. Your entries "Total bond interest expense" will be verified.

Given P14-03A

Given Data P14-03A:
HEATHROW
Bonds issued, face value $ 2,000,000
Annual interest 6%
Maturity in years 15
Issuance price $ 2,447,990
Check figures:
(3) $ 1,352,010
(4) 12/31/2012 carrying value $ 2,388,258

P14-06A

Student Name:
Class:
Problem 14-06A
PATTON
General Journal
Part 1.
Date Account Titles Debit Credit
2011
Jan 1 Cash
Discount on Bonds Payable 0
Bonds Payable
Sold bonds on stated issue date.
Part 2.
Eight payments of $16,250
Par value at maturity
Total repaid
Less amount borrowed
Total bond interest expense 0
or:
Eight payments of $16,250
Plus discount
Total bond interest expense 0
Part 3.
PATTON
Semiannual
Interest Unamortized Carrying
Period-End Discount Value
1/1/11 0
6/30/11 0
12/31/11 0
6/30/12 0
12/31/12 0
PATTON
General Journal
Part 4
Date Account Titles Debit Credit
2011
June 30 Bond Interest Expense 0
Discount on Bonds Payable
Cash
To record six months' interest and discount amortization.
2011
Dec. 31 Bond Interest Expense 0
Discount on Bonds Payable
Cash
To record six months' interest and discount amortization.
Part 5: Assume that the market rate on January 1, 2011, is 4% instead of
8%. Without providing numbers, describe how this change affects the amounts
reported on Patton's financial statements.
Enter appropriate data in yellow cells. Your entries will be verified.
Enter appropriate data in yellow cells. Your entries "Total bond interest expense" will be verified.
Enter appropriate data in yellow cells. Your entries will be verified.
Enter appropriate data in yellow cells. Your entries "Total bond interest expense" will be verified.
Enter appropriate data in yellow cells. Your entries for "Carrying Value" will be verified.
Enter appropriate data in yellow cells. Your entries will be verified.
Enter a short answer in the space provided.

Given P14-06A

Given Data P14-06A:
PATTON
Bonds issued, face value $ 650,000
Annual interest 5%
Maturity in years 4
Issuance price $ 584,361
Market interest rate 8%
Check figures:
(2) $ 195,639
(3) 12/31/2012 Carrying value $ 617,181

P14-07A

Student Name:
Class:
Problem 14-07A
PATTON
General Journal
Part 1.
Date Account Titles Debit Credit
2011
Jan 1 Cash
Discount on Bonds Payable 0
Bonds Payable
Sold bonds on stated issue date.
Part 2.
Eight payments of $16,250
Par value at maturity
Total repaid
Less amount borrowed
Total bond interest expense 0
or:
Eight payments of $16,250
Plus discount
Total bond interest expense 0
Part 3.
PATTON
Semiannual Cash Bond
Interest Interest Interest Discount Unamortized Carrying
Period-End Paid Expense Amortization Discount Value
1/1/11 0
6/30/11 0
12/31/11 0
6/30/12 0
12/31/12 0
PATTON
General Journal
Part 4
Date Account Titles Debit Credit
2011
June 30 Bond Interest Expense
Discount on Bonds Payable 0
Cash
To record six months' interest and discount amortization.
2011
Dec. 31 Bond Interest Expense
Discount on Bonds Payable 0
Cash
To record six months' interest and discount amortization.
Enter appropriate data in yellow cells. Your entries will be verified.
Enter appropriate data in yellow cells. Your entries "Total bond interest expense" will be verified.
Enter appropriate data in yellow cells. Your entries for "Carrying Value" will be verified.
Enter appropriate data in yellow cells. Your entries will be verified.
Enter appropriate data in yellow cells. Your entries "Total bond interest expense" will be verified.

Given P14-07A

Given Data P14-07A:
PATTON
Bonds issued, face value $ 650,000
Annual interest 5%
Maturity in years 4
Issuance price $ 584,361
Market interest rate 8%
Check figures:
(2) $ 195,639
(3) 12/31/2012 Carrying value $ 614,614