Question

Denver Mountain Company Trial Balance 11/30/17 Dr 272,000 114,500 TH9 1,000 50,000 55,000 62,000 75,000 32,000 100,000 12,000 18,000 26,250 Cash Accounts Receivable Allowance for Doubtful Accounts Short Term Note Receivable Supplies Inventory Equipment Building Accumulated Depreciation Copyright Accounts Payable Dividends Payable Interest Payable Unearned Revenue ST Note Payable LT Mortgage Payable Bonds Payable Premium on Bonds Payable Common Stock - $1.50 par Paid In Capital In Excess of Par-CS Preferred Stock - $5 par | Paid In Capital In Excess of Par-PS Treasury Stock Retained Earnings Dividends Sales Revenue Sales Returns & Allowances Sales Discounts Cost of Goods Sold Bad Debts Expense Depreciation Expense Wages Expense Rent Expense Insurance Expense Supplies Expense Interest Revenue Interest Expense Gain on Sale of Equipment Income Tax Expense Total 350,000 26,840 90,000 86,000 1,000 50,000 0 3,500 2,000 443,910 7,000 3,000 46.000 1 5,000 16,000 157,500 98,000 25,000 16,000 1,000 6,500 - L 46,000 1,156,500 15,000 1,156,500

JUST NEED 1 &2 OF LAST PAGE!!! Thank youuuu

Answer 1

Answer-1:

Year Opg Bal. (1) (2) Dec.31, 2017 $ 300,000 Jan. 31, 2018 $ 298,200 LT MORTGAGE PAYABLE Instalment Interest Exp Reduction in O/s Liab Closing Bal. (3) (4) = (2) x 8% / 12 (5) = (3) - (4) (6) = (2) - (5) $ 3,800 $ 2,000 $ 1,800 $ 298,200 $ 3,800 $ 1,988 $ 1,812 $ 296,388

The balance at mortgage payable account as at January 31, 2018 is $296,388

Answer-2:

Market interest rate = 10%
   Market interest rate for a semiannual period = 10% / 2 = 5%
   r = 0.05 (per semiannual period),  
   n = 10 (semiannual periods)

Present value of principal
   = $2,000,000 x Present value factor for a single payment (5%, 10 periods)
   = $2,000,000 x 0.6139
   = $1,227,800

Interest payment each semiannual period
   = $2,000,000 x 6%
   = $120,000  
   (Coupon rate for a semiannual period = 12% / 2 = 6%.)

Present value of interest payments
   = Interest payment each semiannual period
          x Present value factor for an ordinary annuity (5%, 10 periods)
   = ($2,000,000 x 6%) x 7.7217
   = $926,604

Price of bonds
   = Present value of principal + Present value of interest payments
   = $1,227,800 + $926,604
   = $2,154,404

The bonds will be sold at a $154,404 premium from the face amount.
($2,154,404 - $2,000,000 = $154,404)