ACC 304 All Assignments ACC 304 All Assignments | Page 28

Issue price of bond
4) Without prejudice to your solution in part (a), assume that the
issue price was $2,652,000. Prepare the amortization table for 2015,
assuming that amortization is recorded on interest payment dates using
the effective-interest method.
5) Sisco Co. purchased a patent from Thornton Co. for $620,000 on
July 1, 2012. Expenditures of $119,000 for successful litigation in
defense of the patent were paid on July 1, 2015. Sisco estimates that
the useful life of the patent will be 20 years from the date of
acquisition.
Prepare a computation of the carrying value of the patent at December
31, 2015.
6) On August 31, Latty Co. partially refunded $443,000 of its
outstanding 10% note payable made one year ago to Dugan State Bank
by paying $443,000 plus $44,300 interest, having obtained the
$487,300 by using $134,220 cash and signing a new one-year $388,000
note discounted at 9% by the bank.
7) Make the entry to record the partial refunding. Assume Latty Co.
makes reversing entries when appropriate. (Credit account titles are