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Please answer 1, 2, 3 You have obtained the following schedule of long-term debt from McNeil Company for the audit of financial statements for the
Please answer 1, 2, 3
You have obtained the following schedule of long-term debt from McNeil Company for the audit of financial statements for the year ended December 31. year 3. Notes payable Interest Due Date 1/1/year 3 Additions Payments 12/31/year 3 Description Rate Beginning Ending Balance Balance Mortgage 6.25% 6/30/year 12 $1,104,000 $96,000 $1,008,000 Payable Unsecured 6.00% 12/31/year 14 7.500.000 0 625.000 6.875.000 Notes Payable Secured Bonds 5.75% 4/30/year 3 3.000.000 0 3,000,000 0 4.00% |4/30/year 13 0 Convertible Debentures $6,000,000 6,000,000 Total 5.50% $11,604,000 $6,000,000 $3.721.000 $13.883,000 Additional information: Mortgage payable and unsecured notes payable are paid with related interest at the end of each month. Secured bond was paid on the due date. The interest on this bond was payable yearly and it was paid on April 30. year 3. Convertible debentures were issued on May 1, year 3. The interest on this debt is payable yearly-- on the anniversary day of the debt issuance. 1. The auditor's expectation with regard to interest expense is: 2. The interest expense recorded on the company's books for year 3 is $782,500. The auditor most likely will conclude that: 3. The auditor's expectation for interest payable as of December 31, year 3 is: You have obtained the following schedule of long-term debt from McNeil Company for the audit of financial statements for the year ended December 31. year 3. Notes payable Interest Due Date 1/1/year 3 Additions Payments 12/31/year 3 Description Rate Beginning Ending Balance Balance Mortgage 6.25% 6/30/year 12 $1,104,000 $96,000 $1,008,000 Payable Unsecured 6.00% 12/31/year 14 7.500.000 0 625.000 6.875.000 Notes Payable Secured Bonds 5.75% 4/30/year 3 3.000.000 0 3,000,000 0 4.00% |4/30/year 13 0 Convertible Debentures $6,000,000 6,000,000 Total 5.50% $11,604,000 $6,000,000 $3.721.000 $13.883,000 Additional information: Mortgage payable and unsecured notes payable are paid with related interest at the end of each month. Secured bond was paid on the due date. The interest on this bond was payable yearly and it was paid on April 30. year 3. Convertible debentures were issued on May 1, year 3. The interest on this debt is payable yearly-- on the anniversary day of the debt issuance. 1. The auditor's expectation with regard to interest expense is: 2. The interest expense recorded on the company's books for year 3 is $782,500. The auditor most likely will conclude that: 3. The auditor's expectation for interest payable as of December 31, year 3 isStep by Step Solution
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