Practice6 Essay

585 words - 2 pages

Problem 10.4A
a. The amount of the monthly payments exceeds the amount of the monthly interest expense.
Therefore, a portion of each payment reduces the unpaid balance of the loan. The
continuous reduction in the unpaid balance, in turn, causes the monthly interest expense to
be less in each successive month, and the amount applied to the unpaid balance to increase.
Thus, the loan principal is repaid at an ever-increasing rate.
General Journal
Oct 1 Interest Expense 10,800
Mortgage Note Payable 310
Cash 11,110
To record monthly payment on mortgage.
Nov 1 Interest Expense 10,797
Mortgage Note Payable 313
Cash 11,110
To record monthly mortgage payment.
Amortization Table
(12%, 30-Year Mortgage Note Payable for $1,080,000;
Payable in 360 Monthly Installments of $11,110)
Reduction in
date Sept. 1, 2011
$ 1,080,000
1 Oct. 1 $ 11,110 $ 10,800 $ 310 1,079,690
2 Nov. 1 11,110 10,797 313 1,079,377
3 Dec. 1 11,110 10,794 316 1,079,061
4 Jan. 1, 2012 11,110 10,791 319 1,078,742
d. At December 31, 2011, two amounts relating to this mortgage loan will appear as current
liabilities in the borrower's balance sheet. First, as payments are due on the first day of
each month, one month's interest has accrued since the December 1 payment. This accrued
interest will be paid on January 1, 2012, and therefore, is a current liability.
Next, the portion of the unpaid principal that will be repaid during 2012 represents a
current liability.
Problem 10.6A

General Journal
(1) Bonds issued at 98:
Dec 31 Bond Interest Expense 2,693,334
Discount on Bonds Payable 26,667
Bond Interest payable 2,666,667
To record accrual of bond interest expense for
four months in 2011:
Contract interest ($80,000,000 x 10% x 4/12) $ 2,666,667
Discount amortization ($1,600,000 ÷ 20 years) x 4/12 26,667
Bond interest expense for four months $ 2,693,334
Mar 1 Bond Interest Payable 2,666,667
Bond Interest Expense 1,346,667
Discount on Bonds Payable 13,334
Cash 4,000,000
To record semiannual bond interest payment and
interest expense for two months (1/2 of interest for
four months, as computed in preceding entry). *
(2) Bonds issued at 101:
Dec 31 Bonds Interest Expense 2,653,334
Premium on Bonds Payable 13,333
Bond Interest payable 2,666,667
Accrual of interest on bonds for four months:
Contract interest ($80,000,000 x 10% x 4/12) $ 2,666,667
Less: Premium amortization ($800,000 ÷ 20 yrs) x
Bond interest expense for four months $ 2,653,334
Mar 1 Bond Interest Payable 2,666,667
Bond Interest Expense 1,326,667
Premium on Bonds Payable 6,666
Cash 4,000,000
Semiannual bond interest payment and interest
expense for two months (1/2 of interest for four
months, as computed in preceding entry).*
* Actual amount differs slightly due to rounding

Net bond liability at Dec. 31, 2012: Bonds
at 98

Find Another Essay On practice6

Essay on Light and Dark in Antigone

1188 words - 5 pages Use of Light and Dark in Antigone   The "Golden Age" of Greece is noted for its many contributions to the creative world, especially in its development of the play. These performances strived to emphasize Greek morals, and were produced principally for this purpose. Antigone, by Sophocles, is typical. The moral focused on in Antigone is the conflict between physis (nature) and nomos (law), with physis ultimately presiding over nomos

charant Creon as the Main Character of Antigone

1231 words - 5 pages Creon as the Main Character of Antigone   Throughout the Greek play Antigone by Sophocles, there exists a dispute as to who should receive the designation of main character. Antigone, the daughter of the cursed King Oedipus, as well as Creon, stately king of Thebes, both appear as the key figures in this historic play. I believe that Creon, king of Thebes, should be considered the main character in this work of Greek theater. Three

Free Macbeth Essays: Sleep and Sleeplessness

525 words - 2 pages The Sleep and Sleeplessness Motif in Macbeth We have consciences that function to tell us the difference between right and wrong. If we have clear consciences, we usually possess the ability to sleep. But when our consciences are full of guilt, we experience a state of sleeplessness. In Macbeth, Shakespeare uses the sleep and sleeplessness motif to represent Macbeth's and Lady Macbeth's consciences and the effect Macbeth's conscience has on

Life Outside of Life in Hawthorne’s Wakefield

898 words - 4 pages Life Outside of Life in Hawthorne’s Wakefield   Efficacy lies at the heart of human desires for immortality. Characters throughout literature and art are depicted as wanting to step aside and see what their world would be like without their individual contributions. The literary classic A Christmas Carol and the more recent, but ageless, film It’s Wonderful Life both use outside influences (three ghosts and Clarence the Angel

Essay on Identity in Song of Solomon

2172 words - 9 pages Searching for Identity in Song of Solomon         Abstract: Whether Africans really fly or just escape a monumental burden, perhaps only through death, is a decision Toni Morrison has apparently left to her readers. Never the less, no matter what you believe, within Song of Solomon, the suggestion is, that in order to "fly" you must go back to the beginning, back to your roots. You must learn the "art" from the old messages.   O

The Character of Oedipus in Oedipus and The Infernal Machine

904 words - 4 pages The Character of Oedipus in Oedipus and The Infernal Machine    The stories of Oedipus, as told through Seneca's Oedipus and Cocteau's The Infernal Machine, contain both similarites and differences. Both authors portray the character of Oedipus as being obstinate, ignorant, and inquisitive. Yet Seneca and Cocteau differ on their interpretation of the motives that propelled these characteristics of Oedipus. Seneca portrays Oedipus as a

Okonkwo's Tragic Flaws in Chinua Achebe's Things Fall Apart

3121 words - 12 pages        An increasing amount of contemporary literature traces its origins back to the early works of Greece. For ages, humans have fascinated themselves with the impossible notion of perfection. Unrealistic expectations placed on those who were thought to be the noblest or most honorable individuals have repeatedly led to disappointment and frustration, either on the part of those particular individuals or those they influence. Classic

Sophocles' Antigone - Antigone Must Challenge Creon

889 words - 4 pages Antigone Must Challenge Creon in Antigone   In his "Funeral Oration" Pericles, Athens's leader in their war with other city-states, rallies the patriotism of his people by reminding them of the things they value. He encourages a sense of duty to Athens even to the point of self-sacrifice. He glorifies the free and democratic Athenian way of life and extravagantly praises those willing to die for it. In Antigone, Creon, Thebes's leader in

The Role of Women in Homer’s Iliad

796 words - 3 pages The Role of Women in Homer’s Iliad Homer’s Iliad is undoubtedly focused on its male characters: Achilles, primarily, but also Hector and Agamemnon. Nevertheless, it seems that the most crucial characters in the epic are female. Homer uses the characters of Thetis, Andromache, and Helen as a basis for comparison to the male characters. Homer wants his audience to see and understand the folly of his male characters in choosing war over peace

A Comparison of Butler's Life and Kindred

1915 words - 8 pages A Comparison of Butler's Life and Kindred   What lies in the mind of an author as he or she begins the long task of writing a fiction novel? This question can be answered if the author's life is studied and then compared to the work itself. Octavia E. Butler's life and her novel Kindred have remarkable comparisons. This essay will point out important events of Butler's life and how they link to the mentioned novel. Octavia Estelle

Pillars of Metaphorical Ambiguity in The Scarlet Letter

1439 words - 6 pages Pillars of Metaphorical Ambiguity in The Scarlet Letter Among the multiplicity of arcane elements hidden beneath the words in Hawthorne's "The Scarlet Letter", none is so apparent, yet strikingly subtle to the reader's perception and consumption of characterization than the allegorical play on words within the names of the characters.  Both the protagonist and her rival within the plot are blessed with conveniently appropriate, fitting

Similar Essays

Rural Tourism In Cyprus Essay

3061 words - 12 pages . Introduction2. Rural tourism: a development panacea?3. Tourism in Cyprus4. The development of agrotourism in Cyprus5. Agrotourism in Cyprus: from policy to practice6. Agrotourism: a success story?7. Methodology8. The perceived benefits of agrotourism9. Agrotourism: the challenges9.1. Lack of support9.2. Lack of training9.3. Lack of local facilities/amenities9.4. Low occupancy levels9.5. Ineffective marketing10. Summary and

Reality And Illusion In Shakespeare's Hamlet Reality, Appearance And Deception

896 words - 4 pages Reality and Illusion in Hamlet   Shakespeare’s play, Hamlet, begins with the appearance of a ghost, an apparition, possibly a hallucination. Thus, from the beginning, Shakespeare presents the air of uncertainty, of the unnatural, which drives the action of the play and develops in the protagonist as a struggle to clarify what only seems to be absolute and what is actually reality. Hamlet's mind, therefore, becomes the central force of the

Sub Plots In Hamlet Essay

1118 words - 4 pages Sub-plots in Hamlet   There are many things that critics say make Hamlet a "Great Work," one of which is the way that Shakespeare masterfully incorporates so many sub-plots into the story, and ties them all into the main plot of Hamlet’s revenge of his father’s murder. By the end of Act I, not only is the main plot identified, but many other sub-plots are introduced. Among the sub-plots are trust in the Ghost of King Hamlet, Fortinbras, and

Hamlet As Victim And Hero Essay

1301 words - 5 pages Hamlet as Victim and Hero      Hamlet, Prince of Denmark, a Shakespearean tragedy, tells the story of Prince Hamlet, who gained the knowledge of a terrible incident that his kingdom had suffered. Claudius, the king of Denmark and Hamlet's uncle, had killed his own brother, the king, who was also the father of Hamlet, and married his brother's widow. Hamlet suffered these traumas to a severe degree, and his only relief was to defeat his