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Ch 14

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EXERCISE 14-6 (15–20 minutes)

|Schedule of Discount Amortization |
|Straight-Line Method |
| | | | | | | | |Carrying Amount of Bonds |
| | |Cash Paid | |Interest Expense | |Discount Amortized | | |
|Year | | | | | | | | |
|Jan. 1, 2010 | | | | | | | |$2,783,724.00 |
|Dec. 31, 2010 | |$300,000 | |$343,255.20 | | $43,255.20* | | 2,826,979.20 |
|Dec. 31, 2011 | |300,000 | |343,255.20 | |43,255.20 | | 2,870,234.40 |
|Dec. 31, 2012 | |300,000 | |343,255.20 | |43,255.20 | | 2,913,489.60 |
|Dec. 31, 2013 | |300,000 | |343,255.20 | |43,255.20 | | 2,956,744.80 |
|Dec. 31, 2014 | |300,000 | |343,255.20 | |43,255.20 | | 3,000,000.00 |

*$43,255.20 = ($3,000,000 – $2,783,724) ÷ 5.

EXERCISE 14-7 (15–20 minutes)

The effective-interest or yield rate is 12%. It is determined through trial and error using Table

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Mgmt 280

...MGMT  280 Business  Communica3ons Class  3 Tuesday, January 15, 13 1 But  first.... A  story  about   Love Communica3ons And Rela3onships Tuesday, January 15, 13 2 Tuesday, January 15, 13 3 A  Review  of  the  Basics 1/3  of  the  class  did  not  follow  direc7ons Tuesday, January 15, 13 4 (I  am  trying  to  help  you  get  prepared  for  the  real  world) 1.  All  email  goes  to  this  email  address  only:   barnesjw@seaEleu.edu 2.  Meet  the  deadlines.  One  email  message  said,  “Hey   professor,  sorry  I  was  traveling.”   3.  Save  papers  with  your  name,  class  name,  and  assignment   name  in  the  file  name.  Example:  John  Doe,  MGMT  280,   Nonverbal  Assessment. Do  not  save  your  papers  with  file  names  such  as: “paper”                                                    “first  paper”                          “MGMT  280”                             “nonverbal  paper”            “280  paper” 4.  All  email  messages  must  have  an  email  signature. Tuesday, January...

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