BUSI 1004 Lecture Notes - Lecture 14: Interest Expense, Accounting Equation, Retained Earnings

• School: Carleton University
• Department: Business
• Course: BUSI 1004
• Professor: Not Applicable

Document Summary

Interest expense accrued on dec 31, 2011= (,000-80,000) x 4% x 1/12 = ,067. No impact on assets, increase in liabilities ,067; decrease in shareholders" equity ,067. The journal entry on june 30, 2011 is: Decrease in assets ,000; decrease in liabilities ; decrease in shareholders" equity ,256. Average book value of retired shares: 40,000,000/1,000,000 = /share. Loss on retirement of shares: 40,000 x (46 40) = ,000. Decrease in assets ,840,000; no impact on liabilities; decrease in shareholders" equity. End inventory = beg inventory + net purchases cogs. End inventory = 80,000 + (305,000 + 18,000 22,000) 290,000. Book value of bonds (carrying value, bond price) as of jan 1, 2023is: N ( number of periods left until maturity) =12. I/y = (ytm or market interest rate divided by two for a half year) = 4. 4% Pmt (the semi annual interest payment) = ,000,000 x 4%= ,000. Q8: acquisition cost = ,000 + 5,000 = ,000.