Homework Answers
| Date | Accounts | Debit | Credit |
| 01.06.20X1 | Cash | $450,000 | |
| To Sale of Equipment | $428,000 | ||
| To Maintenance Contract ( 450000-428000) | $22,000 | ||
| ( Sale of equipment with 3 Year warranty) | |||
| 30-11-20X1 | sale of Equipment | $428,000 | |
| P&L | $428,000 | ||
| ( Revenue Booked) | |||
| 30-11-20X1 | Maintenance Contract Amount charge | $22,000 | |
| Discount on Maintenance Contract | $67,900 | ||
| Provision for Maintenance for 3 year | $89,900 | ||
| ( Provision for 3 Year Maintenance contract created and Discount booked according market rate) | |||
| P&L A/c Dr. | $67,900 | ||
| To Discount on Maintenance contract | $67,900 | ||
| ( Discount booked in PL A/c) |
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in 10 years, with interest payable semiannually on June 30 and
December 31 each year.
Assuming the market interest rate on the issue date is 8%, the
bonds will issue at $419,423.
Required: 1. Complete the first three rows of an amortization table. (Round your intermediate and final answers to the nearest whole dollar.) Date Cash Paid Interest Expense Change in Carrying Value Carrying Value 1/1/21 6/30/21 12/31/21...
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