Course Project
Acct 550c Week6 Homework
E10-1
Item
Land
Land Improvements
Bldg
Other Accts
(a)
($275,000) Notes Payable
(b)
$275,000
(c)
$ 10,000
(d)
7,000
(e)
6,000
(f)
(1,000)
(g)
25,000
(h)
250,000
(i)
9,000
(j)
$ 4,000
(k)
11,000
(l)
(5,000)
(m)
13,000
(n)
19,000
(o)
14,000
(p)
3,000
E10-3
1.
Trucks
13,900
Cash
13,900
2.
Trucks
18,364*
Discount on Notes Payable
1,636
Cash
2,000
Notes Payable
18,000
*PV of $18,000 @ 10% for 1 year =
$18,000 X .90909 = $16,364
$16,364 + $2,000 = $18,364
3.
Trucks
15,200
Cost of Goods Sold
12,000
Inventory
12,000
Sales Revenue
15,200
4.
Trucks
13,000
Common Stock
10,000
Paid-in Capital in Excess of Par – Common Stock (1,000 shares X $13 = $13,000; $13,000 less $10,000 par value)
3,000
E10-7
(a)
Avoidable Interest
Weighted-Average
Accumulated Expenditures
X
Interest Rate
=
Avoidable Interest
$2,000,000
12%
$240,000
1,800,000
10.38%
186,840
$3,800,000
$426,840
Weighted-average interest rate computation
Principal
Interest
10% short-term loan
$1,600,000
$160,000
11% long-term loan 1,000,000
110,000
$2,600,000
$270,000
Total Interest
=
$270,000
= 10.38%
Total Principal
$2,600,000
(b)
Actual Interest
Construction loan
$2,000,000 X 12% =
$240,000
Short-term loan
$1,600,000 X 10% =
160,000
Long-term loan
$1,000,000 X 11% = 110,000
Total
$510,000
Because
E10-1
Item
Land
Land Improvements
Bldg
Other Accts
(a)
($275,000) Notes Payable
(b)
$275,000
(c)
$ 10,000
(d)
7,000
(e)
6,000
(f)
(1,000)
(g)
25,000
(h)
250,000
(i)
9,000
(j)
$ 4,000
(k)
11,000
(l)
(5,000)
(m)
13,000
(n)
19,000
(o)
14,000
(p)
3,000
E10-3
1.
Trucks
13,900
Cash
13,900
2.
Trucks
18,364*
Discount on Notes Payable
1,636
Cash
2,000
Notes Payable
18,000
*PV of $18,000 @ 10% for 1 year =
$18,000 X .90909 = $16,364
$16,364 + $2,000 = $18,364
3.
Trucks
15,200
Cost of Goods Sold
12,000
Inventory
12,000
Sales Revenue
15,200
4.
Trucks
13,000
Common Stock
10,000
Paid-in Capital in Excess of Par – Common Stock (1,000 shares X $13 = $13,000; $13,000 less $10,000 par value)
3,000
E10-7
(a)
Avoidable Interest
Weighted-Average
Accumulated Expenditures
X
Interest Rate
=
Avoidable Interest
$2,000,000
12%
$240,000
1,800,000
10.38%
186,840
$3,800,000
$426,840
Weighted-average interest rate computation
Principal
Interest
10% short-term loan
$1,600,000
$160,000
11% long-term loan 1,000,000
110,000
$2,600,000
$270,000
Total Interest
=
$270,000
= 10.38%
Total Principal
$2,600,000
(b)
Actual Interest
Construction loan
$2,000,000 X 12% =
$240,000
Short-term loan
$1,600,000 X 10% =
160,000
Long-term loan
$1,000,000 X 11% = 110,000
Total
$510,000
Because