Microsoft Word - ACC 302_502_HW_1_R_Online_NEW
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d.docs.live.net/03802287e923490c/Documents/Greg/Walsh/ACC 302_502_HW_1_R_Online_NEW.docx
7/14/2021
ACC 302 Name: ___________________________
Homework #1 Date: ____________________________
1. On January 1, 2020, Scottsdale Company issued its 6% bonds in the face amount of $3,000,000,
which mature on January 1, XXXXXXXXXXThe bonds were issued for $2,649,927 to yield 9%.
Scottsdale uses the effective-interest method of amortizing bond discount. Interest is payable
annually on December 31. The 12/31/22 Discount on Bond Payable balance is:
Answer
$_______________
2. On April 1, 2020, Sydney Company issued 300 $1,000 bonds at 98. Each bond was issued with
four detachable stock wa
ants. Shortly after issuance, the bonds were selling at 96, and the
wa
ants were selling for $40 each.
Instructions:
Prepare the entry to record the issuance of the bonds and wa
ants.
3. The Cinci Company issues $100,000, 10% bonds at 103 on October 1, XXXXXXXXXXThe bonds are
dated January 1, 2020 and mature eight years from that date. Straight-line amortization is used.
Interest is paid annually each December 31. Compute the bond ca
ying value as of December
31, 2024.
Answer
$_______________
4. At December 31, 2024, the following balances existed for MICPA Corporation:
Bonds Payable (6%) $600,000
Discount on Bonds Payable 50,000
The bonds mature on 12/31/28. Straight-line amortization is used.
If 60% of the bonds are retired at 102 on January 1, 2028, what is the gain or loss on early
extinguishment?
Answer
$_______________
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d.docs.live.net/03802287e923490c/Documents/Greg/Walsh/ACC 302_502_HW_1_R_Online_NEW.docx
7/14/2021
Required:
Compute the answer for each of the four problems. Show supporting computation. No need to show
questions.
Submission Information:
1. Submit the assignment in Excel using one page. Include your Name, Date, ACC Course, and
Homework #1 in the upper left corner.
2. Submit your assignment through the upload feature within Moodle. Assignments should not be
emailed to the instructor. PLEASE BE SURE YOUR ASSIGNMENT IS ACTUALLY SUBMITTED
AND NOT IN “DRAFT” STATUS. There is a requirement to click a box to acknowledge the
submission is your original work to complete the submission process.