13-2

A. 1 September Purchases 50.000

A/P 50.000

1 Oktober A/P 50.000

Note payable 50.000

1 Oktober Cash 50.000

Discon notes payable 4.000

Notes payable 54.000

B. 31 Desember Interest exp 1.000

Interest payable 1.000

(50.000x8%x3/12)

31 Desember Interest exp 1.000

Discon notes payable 1.000

C. 1. Notes payable 50.000

Interest payable 1.000

51.000

2. Note payable 54.000

Less discon (4.000 - 1.000) 3.000

51.000
13-13

A. A/R 300.000

Sales rev 300.000

Warranty exp 30.000

Cash,inventory,etc 30.000

Warranty exp 90.000

Warranty liability 90.000

(120.000 - 30.000)

B. A/R 3.000.000

Sales rev 2.840.000

Unearned warranty 60.000

Warranty exp 30.000

Cash,inventory,etc 30.000

Unearned warranty rev 40.000

Warrty rev 40.000

(160.000 x (30.000 : 120.000))

14-14

A. Present value of the principal

(1.500.000 x 3.5218) 528.270

Present value of the interest payments

(1.500.000 x 10%) x 5.88923 883.385

 Present value (selling price) of the bonds 1.411.655

B. AMORTIZATION SCHEDULE 10 YEAR, 10% Bonds Sold to Yield 11%

Date Cash Paild Interest Discount Carrying

Amount of
Expenses Amortized

1/2/07 - - - 1.411.655

12/31/07 150.000 155.282 5.282 1.416.937

12/31/08 150.000 155.863 5.863 1.422.800

12/31/09 150.000 156.508 6.508 1.428.308

12/31/10 150.000 157.224 7.224 1.436.532

12/31/11 150.000 158.019 8.019 1.444.551

C. Bonds payable 952.872

(1.429.308 x 1.000/ 1.500.000)

Cash (1.000.000 x 101%) 952.872