Homework

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BRIEF Exercises

Brief Exercise 13–1

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Cash 60,000,000

Notes payable 60,000,000

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Interest expense ($60,000,000 x 12% x 3/12) 1,800,000

Interest payable 1,800,000

Brief Exercise 13–2

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Cash (difference) 54,600,000

Discount on notes payable ($60,000,000 x 12% x 9/12) 5,400,000

Notes payable (face amount) 60,000,000

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Interest expense ($60,000,000 x 12% x 3/12) 1,800,000

Discount on notes payable 1,800,000

Brief Exercise 13–3

a.

December 31

$100,000 x 12% x 6/12 = $6,000

b.

September 30

$100,000 x 12% x 3/12 = $3,000

Brief Exercise 13–4

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Cash (difference) 11,190,000

Discount on notes payable ($12,000,000 x 9% x 9/12) 810,000

Notes payable (face amount) 12,000,000

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Interest expense 810,000

Discount on notes payable 810,000

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Notes payable (face amount) 12,000,000

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Cash 12,000,000

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Brief Exercise 13-6

December 12

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Cash 24,000

Liability—customer advance 24,000

January 16

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Cash 216,000

Liability—customer advance 24,000

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Sales revenue 240,000

Brief...