Exercises and Problems

Teresa Watkins
ACC 291
January 9, 2014
Michael Bluvas


















E 10-6
Payroll Tax 352.16
FICA Tax 198.40
Federal Government Unemployment Tax 19.84
State Government Unemployment Tax 133.92
E 10-8
1. True
2. True
3. False
4. True
5. False
6. False
7. True
8. True
9. True
10. True
E 10-18
A. Jan. 1 Cash 562,613
Discount on Bonds 37,387
Bonds 600,000



B. Jul. 1 Bond Interest Expenditure
28,131
Discount on Bonds 1,131
Cash 27,000
C. Dec. 31 Bond Interest Expenditure
28,187
Discount on Bonds 1,187
Bond Interest 27,000
10-3A
A. 2011
May 1 Cash 600,000
Bonds Due 600,000
B. Dec. 31 Bond Interest Expenditure 9,000
Bond Interest Due 9,000
C. Present Debts
Bond Interest Due 9,000
Long term Debts
Bonds Due 600,000
D. 2012
May 1 Bond Interest Due 9,000
Bond Interest Expenditure 18,000
Cash 27,000

E. Nov. 1 Bond Interest Expenditure 27,000
Cash 27,000
F. Nov. 1 Bonds Due 600,000
Loss on Bond Redemption 12,000
Cash 612,000
10-6A
A. 2011
Jul. 1 Cash 2,271,813
Bonds Due 2,000,000
Premium on Bonds 271,813
B. Atwater Corp.
A. B. C. D. E.
Semi- Premium Unamor Bond
Annual Interest Amor tized Carrrying
Interest to be Interest tization Premium Value
Durations Paid Expenditure

Issue Date 271,813 2,271,813
1 100,000 90,873 9,217 262,686 2,262,686
2 100,000 90,507 9,493 253,193 2,253,193
3 100,000 90,128 9,872 243,321 2,243,321


C. Dec. 31 Bond Interest Expenditure 90,873
Premium on Bonds Due 9,127
Bond Interest
100,000
D. Jul. 1 Bond Interest Expenditure
90,507
Premium on Bonds Due 9,493
E. Dec. 31 Bond Interest Expenditure
90,128
Premium on Bonds Due 9,872
Bond Interest Due 100,000