Cornerstones of Financial Accounting, 2nd edition

Rich/Jones/Mowen/Hansen
Check Figures
Check figures are given for selected exercises, problems, and cases

Chapter 9
9-26 (b) Credit to Premium on Bonds Payable = $12,000
(c) Debit to Cash = $552,000
9-27 (b) Credit to Premium on Bonds Payable = $202,500
(c) Debit to Cash = $4,455,000
9-29 Debit to Interest Expense = $28,000
9-30 Credit to Discount on Bonds Payable = $6,000
9-31 Carrying value at 12/31/14 = $338,000
9-32 Credit to Cash = $48,000
9-33 Carrying value at 12/31/17 = $820,000
9-34 Interest expense on 6/30/15 = $19,050
Carrying value at 12/31/19 = $473,095
9-35 2014 debit to Interest Expense = $18,875
9-36 Interest expense on 12/31/13 = $27,099
Carrying value at 12/31/16 = $466,291
9-37 2012 credit to Discount on Bonds Payable = $3,159
9-38 Interest expense on 12/31/14 = $35,890
Carrying value at 12/31/20 = $858,016
9-39 2013 debit to Premium on Bonds Payable = $2,182
9-40 Interest expense on 12/31/13 = $10,436
Carrying value at 12/31/16 = $101,736
9-41 2014 debit to Premium on Bonds Payable = $621
9-45 Present value of interest payments = $815,420
9-46 Present value of principal payments = $830,520
9-47 2. Credit to Premium on Bonds Payable = $34,000
3. Debit to Cash = $1,959,000
9-48 2. Proceeds from bonds = $742,500
4. Proceeds from bonds = $772,500
5. Debit to Discount on Bonds Payable = $18,750
9-50 Second year’s credit to Discount on Bonds Payable = $1,272
9-51 4. Total interest expense for 2012 = $71,000
9-52 4. Total interest expense for 2012 = $48,750
9-54 3. The liability balance on 6/30/2013 = $194,400
9-57 1. Carrying value on 12/31/2014 = $1,511,250
3. Premium on bonds payable appearing on balance sheet = $22,500
9-58 3. Credit to Cash = $102,400
9-59 2. Credit to Discount on Notes Payable (both years) = $6,960
9-60 3. Carrying value on 12/31/13 = $549,329
4. Debit to Interest Expense = $19,069
9-61 3. Carrying value on 12/31/12 = $153,865
9-62 2. Effective annual interest rate = 9.4%
3. Interest expense, 12/31/12 = $9,304
4. Liability balance, 12/31/12 = $198,254
9-63 2. Effective annual interest rate = 8.2%
3. Interest expense, 12/31/13 = $8,396
9-64 Sept. 30 note payable balance = $6,390.97
9-65 April 30 debit to Interest Expense = $94.45
9-66 Principal repayment = $71.53
9-67 Credit to Discount on Bonds Payable = $87,500
9-68 Cost of debt financing = 4.550%
9-69 Interest net of income taxes = $195,000
9-72 (a) PV of interest payments = $345,841
(b) PV of principal payments = $115,690
9-73A Current liabilities = $158,100
9-74A 2. Credit to Interest Payable = $5,850
3. Debit to Interest Expense = $1,950
9-75A Carrying value 12/31/13 = $101,800
9-76A 2. Credit to Discount on Notes Payable = $360
4. Carrying value = $796,400
9-77A 1. Carrying value 12/31/14 = $710,400
2. Debit to Interest Expense = $30,650
9-78A 1. Carrying value, 06/30/15 = $495,200
2. 06/30/12 credit to Discount on Bonds Payable = $1,600
9-79A 1. Carrying value, 12/31/13 = $5,100,000
9-80A 2. Debit to Interest Expense = $12,900
9-81A Carrying value, 12/31/14 = $2,590,000
9-82A 3. Debit to Capital Lease Liability = $30,322
9-73B Current liabilities = $144,500
9-74B 2. Credit to Interest Payable = $15,767
3. Debit to Interest Expense = $1,433
9-75B Carrying value 12/31/13 = $251,500
9-76B 2. Credit to Discount on Notes Payable = $725
4. Carrying value = $992,750
9-77B 1. Carrying value 12/31/14 = $920,000
2. Debit to Interest Expense = $28,750
9-78B 1. Carrying value, 06/30/16 = $694,000
2. 06/30/13 credit to Discount on Bonds Payable = $2,000
9-79B 1. Carrying value, 12/31/13 = $4,080,000
9-80B 2. Debit to Interest Expense = $10,150
9-81B Carrying value, 12/31/13 = $3,160,000
9-82B 3. Debit to Capital Lease Liability = $20,980
9-85 1. Financing with notes: EPS = $6.30
2. Financing with stock: EPS = $2.57
3. Financing with notes: EPS = $2.80
9-86 1. EPS = $2.57
2. Income before taxes with expansion = $1,297,000
3. Income before taxes with expansion = $1,097,000
4. EPS with equity financing = $2.28
 With debt financing, income before taxes with expansion = $1,147,000
9-87 4. Debt to equity = 5.95
9-88 2. A&F 2009 times interest earned = 17.87
Aeropostale 2009 times interest earned = infinite
4. A&F 2009 debt to equity = 0.54
Aeropostale 2009 debt to equity = 0.82
6. A&F 2009 debt to total assets = 0.35
Aeropostale 2009 debt to total assets = 0.45
9-89 2. (a) Carrying value, 12/31/13 = $1,414,810
(b) Credit to Discount on Bonds Payable = $12,170
3. (a) Carrying value, 12/31/13 = $1,409,928
(b) Credit to Discount on Bonds Payable = $10,132