Question

Question 5 (6 points) On January 1, 2016, Alpha Company secured a $100,000, 6% annual rate mortgage note. Monthly payments are $1,500, with the first payment being due on January 31 2016, what is the unpaid balance of the note on March 1, 2016? (Round your answer to the nearest whole dollar.) Question 6 (8 points) On August 1, 2017, Alpha Company retired a $10,000 bond at 102. On July 31, 2017 Alpha had accrued the interest payment for $250. At the date of retirement, the unamortized discount on the bonds was $400. Use this information to determine the dollar value of Alpha Company's: (Round all dollar values to the nearest whole dollar.) 1. Gain or Loss on Retirement of Bond: enter any loss dollar & amount inside of brackets () 2. Cash paid to retire the bond issue 3. Amount of Interest Payable liquidated at retirement 4. Amount of Premium or Discount on Bond Payable liquidated at retirement

Answer 1

Question 5
Annual interest=	100000*6% =	6000
Monthly interest = 6000/ 12 =500
Installments for 2 months = 1500* 2 = 3000
Interest for 2 months = 500*2 = 1000
Priniciapl paid in 2 months = 3000- 1000 = 2000
therefore unpaid balance on the note = 100000 - 2000 = 98000
Question 6
1.Loss on retirement = 10200 - 9600-250 =			350
2 .Cash paid = 10000 x 1.02 = 10200
3. Amount of interest payable liquidated = 250
4. Amount of discount liquidated = 400