cash flow group project 3 by b9Wd4w

VIEWS: 9 PAGES: 8

									ACG6115 - SUMMER10
CASH FLOW PROJECT - V1

INSTRUCTIONS:

Prepare a cash flow using the INDIRECT METHOD only

Deliverables:

1- Statement of Cash Flows using formal financial statement presentation

2- Journal entries for additional items 1 - 10 below

3- Support for calculations through (1) Excel Cash Flow Template AND

                                 (2) T-Accounts OR (3) Other Journal Entries

4 - Draft of footnote for any non-cash activities, if applicable

The balance sheet accounts at the beginning and end of the year for Steim Corporation are
shown below:



                                                                                      Steim Corporation
                                                                                   Comparative Balance Sheet


                                                                   Dec. 31, 2010                              Dec. 31, 2009                     Net Change            J/E Effect             Account               Diff.
Assets
Cash                                                   $                             277,900 $                                    298,000 $           (20,100.00) $      (1,600.00)                            $  (18,500.00)
Accounts receivable                                                                  469,424                                      353,000                116,424                -     Revenue                       116,424
Allowance for doubtful accounts                                                      (35,300)                                     (40,000)                 4,700                -     Bad Debt Recoveries              4,700
Inventory                                                                            741,700                                      610,000                131,700                -     Purchases                     131,700
Prepaid expenses                                                                      12,000                                        8,000                  4,000                -     Operating Expenses               4,000
Investment in subsidiary                                                             110,500                                           -                 110,500           110,500                                         -
Cash surrender value of life insurance                                                 2,304                                        1,800                    504                -     Insurance Expense                  504
Machinery                                                                            207,000                                      190,000                 17,000           (16,400)   Fixed Asset - Purchase          33,400
Accumulated depreciation-machinery                                                  (173,000)                                    (130,000)               (43,000)            5,200    Depreciation Expense           (48,200)
Buildings                                                                            535,200                                      407,900                127,300                      Fixed Asset - Purchase        127,300
Accumulated depreciation-buildings                                                  (424,000)                                    (400,000)               (24,000)            7,200    Depreciation Expense           (31,200)
Land                                                                                  52,500                                       52,500                    -                  -                                          -
Patents                                                                               69,000                                       64,000                  5,000            15,000    Amortization Expense           (10,000)
Copyright                                                                             40,000                                       50,000                (10,000)               -     Amortization Expense           (10,000)
Bond discount and issue cost                                                           4,502                                           -                   4,502             4,502                                         -
                                                       $                           1,889,730 $                                  1,465,200 $           424,530.00 $      124,402.00                             ###########
                                                                                                                                                             -                  -
Liabilities                                                                                                                                                  -                  -
Accounts payable                                       $                             299,280   $                                  280,000   $          19,280.00                -     Operating Expenses       $   19,280.00
Accrued taxes payable                                                                 90,250                                       79,600                 10,650                -     Tax Expense                     10,650
Dividends payable                                                                     70,000                                          -                   70,000           (70,000)                                        -
Bonds payable-8%                                                                     125,000                                          -                  125,000          (125,000)                                        -
Bonds payable-12%                                                                        -                                        100,000               (100,000)          100,000                                         -
Premium on bonds payable                                                                 -                                          2,400                 (2,400)            2,400                                         -

Stockholder's Equity
Capital stock-no par                                                               1,176,200                                    1,453,200               (277,000)          277,000                                        -
Additional paid-in capital                                                           109,000                                          -                  109,000          (109,000)                                       -
Additional paid-in capital - stock options                                             5,500                                          -                    5,500            (5,500)                                       -
Retained earnings-unappropriated                                                      14,500                                     (450,000)               464,500          (464,500)                                       -
                                                       $                           1,889,730   $                                1,465,200 $           424,530.00     #############                             $   29,930.00
                                                                                                                                                                          (270,198)                                  270,198


                                                                                                     STATEMENT OF RETAINED EARNINGS
                                                                                                   FOR THE YEAR ENDED DECEMBER 31, 2010

                                                                          January 1, 2010      Balance (deficit)                            $           (450,000)
                                                                          March 31, 2010       Net income for first quarter of 2010                       25,000
                                                                             April 1, 2010     Transfer from paid-in capital                             425,000
                                                                                               Balance                                                           -
                                                                      December 31, 2010        Net income for last three quarters of 2010                 84,500
                                                                      December 31, 2010        Dividend declared-payable January 21, 2011                (70,000)
                                                                                               Balance                                      $             14,500
                                    STEIM CORPORATION
                                 STATEMENT OF CASH FLOWS
                                     DECEMBER 31, 2010


CASH FLOWS FROM OPERATING ACTIVITIES:
 Net Loss                                                              $    99,000
 Adjustments to reconcile net income to net cash provided
 by operating activities:
        Recovery for bad debts                                              (4,700)
        Depreciation Expense                                                79,400
        Amortization Expense                                                20,000
        Amortization of Bond Discount                                          (75)
        Amortization of Bond Premium                                            87
        Gain on Retirement of Bonds                                         (1,425)
        Loss on disposition of property and equip.                           2,200
 Changes in operating assets and liabilities:
        Increase in Trade Accounts Receivables                             (116,424)
        Increase in Inventory                                              (131,700)
        Increase in Prepaid Expenses                                         (4,000)
        Decrease in Accounts Payable                                         19,280
        Decrease in Accrued Liabilities                                      10,650
        Equity income in Subsidiary                                         (10,500)
    Net Cash Provided by Operating Activities                               (38,207)

CASH FLOWS FROM INVESTING ACTIVITIES:
       Purchase of Equipment                                                (33,400)
       Loss from Sale of property and equipment                               9,000
       Purchase of Intangible                                               (15,000)
       Purchase of Investment in Sub                                       (100,000)
       Increase Life Insurance                                                 (504)
       Repairs to Building                                                   (7,200)
       Addiitions to Building                                              (127,300)
   Net Cash Used in Investing Activities                                   (274,404)

CASH FLOWS FROM FINANCING ACTIVITIES:
       Proceeds from Sale of Stock                                          257,000
       Issuance of Debt Bond                                                120,411
       Warrants Redeemed                                                      5,500
       Payments of Dividends                                                (70,000)
       Redemption of Bonds                                                 (100,900)
   Net Cash Provided by Financing Activities                                212,011

NET DECREASE IN CASH AND CASH EQUIVALENTS                                   20,100

CASH AND CASH EQUIVALENTS, beginning of year                               277,900

CASH AND CASH EQUIVALENTS, end of year                                     298,000

SUPPLEMENTAL DISCLOSURE:
 Cash paid for interest                                                     10,500
 Cash paid for income taxes                                                 34,000

Footnote Disclosure of Noncash Investing & Financing Activities:
  Note 1: Supplemental Statement of Cash Flow Information
    Significant noncash investing and financing transactions:

      Conversion of negative retained earnings to additional paid in
      capital due to quasi-reorganization                                  425,000
                                                                                 Bond                                                                              Accum.        Cash       Investment                           Allowance                            Accrued                 Premium on
STEIM CORPORATION                                                Cash        Discount and   Copyright    Patents     Land     Building
                                                                                                                                         Accum Dep.
                                                                                                                                                     Machinery     Depr -      Surrender        in
                                                                                                                                                                                                          Prepaid
                                                                                                                                                                                                                    Inventory   for Doubtful
                                                                                                                                                                                                                                              Accounts    Accounts
                                                                                                                                                                                                                                                                       Taxes
                                                                                                                                                                                                                                                                                   Bonds
                                                                                                                                                                                                                                                                                                 Bonds
                                                                                                                                                                                                                                                                                                         Capital Stock    Retained
                                                                                                                                                                                                                                                                                                                                        APIC
                                                                                                                                                                                                                                                                                                                                                   APIC - Stock
                                                                                                                                          - Building                           Value Life                Expenses                            Receivable    Payable                Payable                  - No par       Earnings                   Options
STATEMENT OF CASH FLOWS                                                       issue cost                                                                          Machinery                 Subsidiary                             Accts.                             Payable                   Payable                                                           Proof
                                                                                                                                                                                  Ins.
A: 12/31/10                                                       298,000              0       50,000      64,000    52,500    407,900     (400,000)   190,000     (130,000)       1,800            0       8,000     610,000      (40,000)    353,000    (280,000)    (79,600)   (100,000)       (2,400)   (1,453,200)     450,000            0             0        -




CASH FLOWS FROM OPERATING ACTIVITIES:
Excess of Revenue over Expenses                                    99,000                                                                                                                                                                                                                                                   (99,000)
Adjustments to reconcile excess of revenue over expenses
to net cash provided by (used in) operating activities-
         Provision (Recovery) for bad debts                        (4,700)                                                                                                                                                           4,700
         Depreciation                                              79,400                                                                   (31,200)    (5,200)     (43,000)
         Amortization of Intangilbles                              20,000                     (10,000)    (10,000)
         Amortization of Bond Discount                                (75)                                                                                                                                                                                                                            75
         Amortization of Bond Premium                                  87            (87)
         Gain on Retirement of Bonds                               (1,425)                                                                                                                                                                                                            (900)        2,325
         (Gain) Loss on disposition of property and equip.          2,200                                                                               (2,200)
                                                                  194,487

Changes in assets and liabilities--
       (Inc)Dec in Receivables                                   (116,424)                                                                                                                                                                     116,424
       (Inc)Dec in inventory                                     (131,700)                                                                                                                                            131,700
       (Inc)Dec in prepaid expenses                                (4,000)                                                                                                                                  4,000
       Inc (Dec) in A/P                                            19,280                                                                                                                                                                                  (19,280)
       Inc(Dec) in Accr. Liabilities                               10,650                                                                                                                                                                                              (10,650)
       Equity income in Subsidiary                                (10,500)                                                                                                                     10,500
                    Total Adjustments                            (232,694)
                    Operating activities                          (38,207)

CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of Equipment                                             (33,400)                                                                              33,400
Gain (Loss) from Sale of property and equipment                     9,000                                                                               (9,000)
Purchase of Intangible                                            (15,000)                                 15,000
Purchase of Investment in Sub                                    (100,000)                                                                                                                    100,000
Increase Life Insurance                                              (504)                                                                                                           504
Repairs to Building                                                (7,200)                                                                    7,200
Addiitions to Building                                           (127,300)                                                     127,300
                                                                 (274,404)


CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from Sale of Stock                                       257,000                                                                                                                                                                                                                                    (148,000)                 (109,000)
Issuance of Debt Bond                                             120,411          4,589                                                                                                                                                                                          (125,000)
Warrants Redeemed                                                   5,500                                                                                                                                                                                                                                                                               (5,500)
Interest Paid                                                                                                                                                                                                                                                                                                               (10,500)
Payments of Dividends                                             (70,000)                                                                                                                                                                                                                                                   70,000
Redemption of Bonds                                              (100,900)                                                                                                                                                                                                         100,900
                                                                  212,011


NONCASH ACTIVTY


        Write-Off of Deficit                                            0                                                                                                                                                                                                                                     425,000      (425,000)



        Ending Balance per Cash Flow                             197,400           4,502       40,000      69,000    52,500    535,200     (424,000)   207,000     (173,000)       2,304      110,500      12,000     741,700      (35,300)    469,424    (299,280)    (90,250)   (125,000)            0    (1,176,200)     (14,500)   (109,000)        (5,500)
                                                                  207,900          4,502       40,000      69,000    52,500    535,200     (424,000)   207,000     (173,000)       2,304      110,500      12,000     741,700      (35,300)    469,424    (299,280)    (90,250)   (125,000)            0    (1,176,200)     (14,500)   (109,000)        (5,500)
                                                                  (10,500)             0            0           0         0          0            0          0            0            0            0           0           0            0           0           0           0           0             0             0            0           0              0



CASH, beginning of period                                         277,900
CASH, end of period                                               298,000

                    DIFFERENCE                                    (20,100)


                    Cash paid during the year for:
                    Interest Expense                         $     10,500
                    Income Taxes Paid Expense                      34,000
                    Plus - Beg. Interest Accrual                      -
                    Less - Ending Interest Accrual                    -
                                                             $     44,500
STEIM CORPORATION
SUPPORTING AUDIT INFORMATION
12/31/2010




Your working papers from the audit contain the following additional information:                                          Calculation                                                Journal Entries                                                        P/L Effect

1.On April 1, 2010, the existing deficit was written off against paid-in capital created by reducing                                                                            1    Retained Earning                                  425000               Net Income                         425,000
                          the stated value of the no-par stock, pursuant to a quasi-reorganization. The ending balances   N/A                                                        Capital Stock - no par                                       425000
                          herein reflect all fair value adjustments.

2.On November 1, 2010, 29,600 shares of no-par stock were sold for $257,000. The board of directors                          29,600.00      Shares                              2    Cash                                             257,000
                       voted to regard $5 per share as stated capital.                                                     #### ######      Market Price                             Capital stock-no par                                        148,000    No P/L Effect
                                                                                                                                 (5.00)     Stated Capital                           APIC- in excess of par                                      109,000
                                                                                                                                  3.68      APIC per share


3.A patent was purchased for $15,000.                                                                                     N/A                                                   3    Intangible Asset - Patent                         15,000               No P/L Effect
                                                                                                                                                                                     Cash                                                         15,000


4.During the year, machinery that had a cost basis of $16,400 and on which there was accumulated                                  16,400    Cost                                4    Cash                                               9,000               Depreciation Expense                  5,300
                         depreciation of $5,200 was sold for $9,000. No other plant assets were sold during the year.             (5,200)   Depreciation                             Accumulated Depreciation-machinery                 5,200               Loss on Sale                         (2,200)
                                                                                                                                  11,200    Book Value                               Retained Earnings - Loss on Sale                   2,200
                                                                                                                                  (9,000)   Sale                                     Fixed Assets                                                 16,400
                                                                                                                                   2,200    Loss on Sale


5.The 12%, 20-year bonds were dated and issued on January 2, 1998. Interest was payable on June 30                                                                              5    Bonds Payable - 12%                              100,000               Interest Expense                      2,925
                       and December 31. They were sold originally at 106. These bonds were retired at 100.9 plus accrued                                                             Premium on Bonds Payable                           2,400               Premium on Bonds Payable              2,400
                       interest on March 31, 2010.                                                                   Refer to Tab "12% Bond Amortization"                            Retained Earnings                                  2,925               Bonds Payable                       100,000
                                                                                                                                                                                     Cash                                                        103,900    Cash                               (103,900)
                                                                                                                                                                                     Retained Earnings - Gain on Retirement                        1,425
                                                                                                                                                                                                                                                            Gain on Retirement                   (1,425)


6.The 8%, 40-year bonds were dated January 1, 2010, and were sold on March 31 at 97 plus accrued                                                                                     3/31/2010
                       interest. Interest is payable semiannually on June 30 and December 31. Expense of issuance         Refer to Tab "8% Bond Amortization"                   6    Cash                                             123,750               Bond Interest Expense                 2,500
                       was $839.                                                                                                                                                     Unamortized Issuance Cost                            839
                                                                                                                                                                                     Discount on Bonds Payable                          3,750
                                                                                                                                                                                     Bonds Payable - 8%                                          125,000
                                                                                                                                                                                     Retained Earnings - (Bond Int. Exp.)                          2,500
                                                                                                                                                                                     Cash (Issuance Cost)                                            839

                                                                                                                                                                                     6/30/2010
                                                                                                                                                                                     Retained Earnings (Bond Int. Exp.)                   5024              Bond Interest Expense                 5,024
                                                                                                                                                                                     Cash                                                          5,000
                                                                                                                                                                                     Discount on Bonds Payable                                      23.58

                                                                                                                                                                                     Retained Earnings - (Issuance Cost)                  5.28              Issuance Cost                          5.28
                                                                                                                                                                                     Unamortized Issuance Cost                                       5.28

                                                                                                                                                                                     12/31/2010
                                                                                                                                                                                     Retained Earnings - (Bond Int. Exp.)                47.17              Bond Interest Expense                 47.17
                                                                                                                                                                                     Retained Earnings - (Issuance Cost)                 10.55              Issuance Cost                         10.55
                                                                                                                                                                                     Discount on Bonds Payable                                     47.17
                                                                                                                                                                                     Unamortized Issuance Cost                                     10.55


7.Steim Corporation acquired 70% control in Crimson Company on January 2, 2010, for $100,000.                                   15,000.00 Net Income from Sub                   7    Investment in Sub                                100,000
                        The income statement of Crimson Company for 2010 shows a net income of $15,000.                              70% Controlling Interest                        Cash                                                        100,000
                                                                                                                                10,500.00 Total Equity in Sub                                                                                               No P/L Effect
                                                                                                                                                                                     Investment in Sub                                 10,500
                                                                                                                                                                                     Equity Income in Sub (RE)                                    10,500



8.Extraordinary repairs to buildings of $7,200 were charged to Accumulated Depreciation-Buildings.                                                                              8    Accumulated Depreciation                           7,200               Depreciation Expense                 (7,200)
                                                                                                                                                                                     Cash                                                          7,200


9.Interest paid in 2010 was $10,500 and income taxes paid were $34,000.                                                                                                         9    Retained Earnings                                 44,500               Tax Expense                         34,000
                                                                                                                                                                                     Cash                                                         44,500    Interest Expense                    10,500


10.On July 1, 2010, 5,000 stock option shares were issued at an exercise price of $5.00 per share.                               5,000.00
        The options were valued at $2.20 per share using the Black-Scholes Model. Options vest                                       2.20                                       10   Retained Earnings                                  5,500               Compensation Expense                  5,500
        pro-rata within one year.                                                                                               11,000.00   Stock Options Value                      Additional paid-in capital - stock options                    5,500
                                                                                                                                     2.00
                                                                                                                                 5,500.00   Stock Options Value at Issue Date

Note: The company uses straight-line amortization for bond interest.
                                                                                                                                                                                Journal Entries for Net Change in Balance Sheet after above entries made:



                                                                                                                                                                                     Retained Earnings                                 70,000               Dividends Expense                   70,000
                                                                                                                                                                                     Dividends Payable                                            70,000


                                                                                                                                                                                     Retained Earnings                                 10,650               Tax Expense                         10,650
                                                                                                                                                                                     Accrued Taxes Payable                                        10,650

                                                                                                                                                                                     Retained Earnings                                 10,000               Amortization Expense - Patent       10,000
                                                                                                                                                                                     Accumulated Amortization - Patents                           10,000

                                                                                                                                                                                     Retained Earnings                                 10,000               Amortization Expense - Copyright    10,000
                                                                                                                                                                                     Accum Amortization - Copyright                               10,000

                                                                                                                                                                                     Retained Earnings                                 31,200               Depreciation Expense - Building     31,200
                                                                                                                                                                                     Accum Depreciation - Building                                31,200

                                                                                                                                                                                     Fixed Asset - Building                           127,300               No P/L Effect
                                                                                                                                                                                     Cash                                                        127,300

                                                                                                                                                                                     Retained Earnings                                 48,200               Depreciation Expense - Machinery    48,200
                                                                                                                                                                                     Accum Depreciation - Machinery                               48,200

                                                                                                                                                                                     Fixed Asset - Machinery                           33,400               No P/L Effect
                                                                                                                                                                                     Cash                                                         33,400

                                                                                                                                                                                     Cash Surrender Value                                 504               Insurance Payments                     504
                                                                                                                                                                                     Retained Earnings                                              504

                                                                                                                                                                                     Prepaid Expenses                                   4,000               Operating Expense                     4,000
                                                                                                                                                                                     Retained Earnings                                             4,000

                                                                                                                                                                                     Inventory                                        131,700               Inventory Purchases                131,700
                                                                                                                                                                                     Retained Earnings                                           131,700

                                                                                                                                                                                     Allowance for Doubtful Accts                       4,700               Bad Debt Expense (Recoveries)        (4,700)
                                                                                                                                                                                     Retained Earnings                                             4,700

                                                                                                                                                                                     Accounts Receivable                              116,424               Sales                              (116,424)
                                                                                                                                                                                     Retained Earnings                                           116,424

                                                                                                                                                                                     Accounts Payable                                  19,280               Operating Expenses                  19,280
                                                                                                                                                                                     Retained Earnings                                            19,280
Amortization Table Problem #5


                                      Date   Cash Paid      Interest Expense     Premium Amortized           Carrying Amount of Bonds
                                  1/2/1998                                                                          106,000.0000
                  1              6/30/1998       6000            5850                        150                    105,850.0000
                  2             12/31/1998       6000            5850                        150                    105,700.0000
                  3              6/30/1999       6000            5850                        150                    105,550.0000
                  4             12/31/1999       6000            5850                        150                    105,400.0000
                  5              6/30/2000       6000            5850                        150                    105,250.0000
                  6             12/31/2000       6000            5850                        150                    105,100.0000
                  7              6/30/2001       6000            5850                        150                    104,950.0000
                  8             12/31/2001       6000            5850                        150                    104,800.0000
                  9              6/30/2002       6000            5850                        150                    104,650.0000
                 10             12/31/2002       6000            5850                        150                    104,500.0000
                 11              6/30/2003       6000            5850                        150                    104,350.0000
                 12             12/31/2003       6000            5850                        150                    104,200.0000
                 13              6/30/2004       6000            5850                        150                    104,050.0000
                 14             12/31/2004       6000            5850                        150                    103,900.0000
                 15              6/30/2005       6000            5850                        150                    103,750.0000
                 16             12/31/2005       6000            5850                        150                    103,600.0000
                 17              6/30/2006       6000            5850                        150                    103,450.0000
                 18             12/31/2006       6000            5850                        150                    103,300.0000
                 19              6/30/2007       6000            5850                        150                    103,150.0000
                 20             12/31/2007       6000            5850                        150                    103,000.0000
                 21              6/30/2008       6000            5850                        150                    102,850.0000
                 22             12/31/2008       6000            5850                        150                    102,700.0000
                 23              6/30/2009       6000            5850                        150                    102,550.0000
                 24             12/31/2009       6000            5850                        150                    102,400.0000
                 25              3/31/2010       3000            2925                         75                    102,325.0000
                 25              6/30/2010       3000            2925                         75                    102,250.0000
                 26             12/31/2010       6000            5850                        150                    102,100.0000
                 27              6/30/2011       6000            5850                        150                    101,950.0000
                 28             12/31/2011       6000            5850                        150                    101,800.0000
                 29              6/30/2012       6000            5850                        150                    101,650.0000
                 30             12/31/2012       6000            5850                        150                    101,500.0000
                 31              6/30/2013       6000            5850                        150                    101,350.0000
                 32             12/31/2013       6000            5850                        150                    101,200.0000
                 33              6/30/2014       6000            5850                        150                    101,050.0000
                 34             12/31/2014       6000            5850                        150                    100,900.0000
                 35              6/30/2015       6000            5850                        150                    100,750.0000
                 36             12/31/2015       6000            5850                        150                    100,600.0000
                 37              6/30/2016       6000            5850                        150                    100,450.0000
                 38             12/31/2016       6000            5850                        150                    100,300.0000
                 39              6/30/2017       6000            5850                        150                    100,150.0000
                 40             12/31/2017       6000            5850                        150                    100,000.0000




                                                                 Calculations

                                  100,000 Face Value                100,000     Face Value
                                    106%                                12%     Rate
                                  106,000 Cash                       12,000     Annual Coupon Payment
                                                                          2
                                                                      6,000     Semi-annual coupon payment




                       Amortization of:
            Premium on Bonds Payable $ 3,750.00                                                  Calculation of Gain:
            Term of Amortization (years)               20                       Reaquisition Price       $                 100,900.00
            Number of periods                         40                        Carrying Amount          $                 102,325.00
            Qtr - Premium Amortization     $       75.00                        Gain                     $                   1,425.00
            Semi Annual - Premium Amortization
                                           $      150.00
Amortization Table Problem #6



                               Date   Cash Paid    Interest Expense    Discount Amortized      Carrying Amount of Bonds
                           1/1/2010
                           4/1/2010                                                                             $121,250
              1           6/30/2010         5000             5023.58                   23.58                    $121,274
              2          12/31/2010         5000         5047.169811             47.16981132                    $121,321
              3           6/30/2011         5000         5047.169811             47.16981132                    $121,368
              4          12/31/2011         5000         5047.169811             47.16981132                    $121,415
              5           6/30/2012         5000         5047.169811             47.16981132                    $121,462
              6          12/31/2012         5000         5047.169811             47.16981132                    $121,509
              7           6/30/2013         5000         5047.169811             47.16981132                    $121,557
              8          12/31/2013         5000         5047.169811             47.16981132                    $121,604
              9           6/30/2014         5000         5047.169811             47.16981132                    $121,651
             10          12/31/2014         5000         5047.169811             47.16981132                    $121,698
             11           6/30/2015         5000         5047.169811             47.16981132                    $121,745
             12          12/31/2015         5000         5047.169811             47.16981132                    $121,792
             13           6/30/2016         5000         5047.169811             47.16981132                    $121,840
             14          12/31/2016         5000         5047.169811             47.16981132                    $121,887
             15           6/30/2017         5000         5047.169811             47.16981132                    $121,934
             16          12/31/2017         5000         5047.169811             47.16981132                    $121,981
             17           6/30/2018         5000         5047.169811             47.16981132                    $122,028
             18          12/31/2018         5000         5047.169811             47.16981132                    $122,075
             19           6/30/2019         5000         5047.169811             47.16981132                    $122,123
             20          12/31/2019         5000         5047.169811             47.16981132                    $122,170
             21           6/30/2020         5000         5047.169811             47.16981132                    $122,217
             22          12/31/2020         5000         5047.169811             47.16981132                    $122,264
             23           6/30/2021         5000         5047.169811             47.16981132                    $122,311
             24          12/31/2021         5000         5047.169811             47.16981132                    $122,358
             25           6/30/2022         5000         5047.169811             47.16981132                    $122,406
             26          12/31/2022         5000         5047.169811             47.16981132                    $122,453
             27           6/30/2023         5000         5047.169811             47.16981132                    $122,500
             28          12/31/2023         5000         5047.169811             47.16981132                    $122,547
             29           6/30/2024         5000         5047.169811             47.16981132                    $122,594
             30          12/31/2024         5000         5047.169811             47.16981132                    $122,642
             31           6/30/2025         5000         5047.169811             47.16981132                    $122,689
             32          12/31/2025         5000         5047.169811             47.16981132                    $122,736
             33           6/30/2026         5000         5047.169811             47.16981132                    $122,783
             34          12/31/2026         5000         5047.169811             47.16981132                    $122,830
             35           6/30/2027         5000         5047.169811             47.16981132                    $122,877
             36          12/31/2027         5000         5047.169811             47.16981132                    $122,925
             37           6/30/2028         5000         5047.169811             47.16981132                    $122,972
             38          12/31/2028         5000         5047.169811             47.16981132                    $123,019
             39           6/30/2029         5000         5047.169811             47.16981132                    $123,066
             40          12/31/2029         5000         5047.169811             47.16981132                    $123,113
             41           6/30/2030         5000         5047.169811             47.16981132                    $123,160
             42          12/31/2030         5000         5047.169811             47.16981132                    $123,208
             43           6/30/2031         5000         5047.169811             47.16981132                    $123,255
             44          12/31/2031         5000         5047.169811             47.16981132                    $123,302
             45           6/30/2032         5000         5047.169811             47.16981132                    $123,349
             46          12/31/2032         5000         5047.169811             47.16981132                    $123,396
             47           6/30/2033         5000         5047.169811             47.16981132                    $123,443
             48          12/31/2033         5000         5047.169811             47.16981132                    $123,491
             49           6/30/2034         5000         5047.169811             47.16981132                    $123,538
             50          12/31/2034         5000         5047.169811             47.16981132                    $123,585
             51           6/30/2035         5000         5047.169811             47.16981132                    $123,632
             52          12/31/2035         5000         5047.169811             47.16981132                    $123,679
             53           6/30/2036         5000         5047.169811             47.16981132                    $123,726
             54          12/31/2036         5000         5047.169811             47.16981132                    $123,774
             55           6/30/2037         5000         5047.169811             47.16981132                    $123,821
             56          12/31/2037         5000         5047.169811             47.16981132                    $123,868
             57           6/30/2038         5000         5047.169811             47.16981132                    $123,915
             58          12/31/2038         5000         5047.169811             47.16981132                    $123,962
             59           6/30/2039         5000         5047.169811             47.16981132                    $124,009
    60          12/31/2039                5000           5047.169811                       47.16981132                               $124,057
    61           6/30/2040                5000           5047.169811                       47.16981132                               $124,104
    62          12/31/2040                5000           5047.169811                       47.16981132                               $124,151
    63           6/30/2041                5000           5047.169811                       47.16981132                               $124,198
    64          12/31/2041                5000           5047.169811                       47.16981132                               $124,245
    65           6/30/2042                5000           5047.169811                       47.16981132                               $124,292
    66          12/31/2042                5000           5047.169811                       47.16981132                               $124,340
    67           6/30/2043                5000           5047.169811                       47.16981132                               $124,387
    68          12/31/2043                5000           5047.169811                       47.16981132                               $124,434
    69           6/30/2044                5000           5047.169811                       47.16981132                               $124,481
    70          12/31/2044                5000           5047.169811                       47.16981132                               $124,528
    71           6/30/2045                5000           5047.169811                       47.16981132                               $124,575
    72          12/31/2045                5000           5047.169811                       47.16981132                               $124,623
    73           6/30/2046                5000           5047.169811                       47.16981132                               $124,670
    74          12/31/2046                5000           5047.169811                       47.16981132                               $124,717
    75           6/30/2047                5000           5047.169811                       47.16981132                               $124,764
    76          12/31/2047                5000           5047.169811                       47.16981132                               $124,811
    77           6/30/2048                5000           5047.169811                       47.16981132                               $124,858
    78          12/31/2048                5000           5047.169811                       47.16981132                               $124,906
    79           6/30/2049                5000           5047.169811                       47.16981132                               $124,953
    80          12/31/2049                5000           5047.169811                       47.16981132                               $125,000
                                                                                           3749.995094      Total Discount Amortization


                                                                                Amortization Total
                                                                                  47.16981132               Premium amortization for 6 month period


                                                          Calculations

                                                                  40    Years
                                                                  12    Months per year
                                                                 480
                                                                  (3)   Sold 3 months after issuance date
                                                                 477    Base for amortization period (months)




           Amortization of:                                                        Amortization of:
Bond Issuance Cost       $           839.00 Discount on Bonds Payable                                           $                   3,750.00
Term of Amortization (months)              477 Term of Amortization (months)                                                                477
Monthly - Amortization Rate $             1.76 Monthly - Discount Rate                                          $                          7.86
Qtr - Bond Issuance Expense
                          $        5.28 Qtr - Discount Amortization                                             $                         23.58
Semi Annual - Bond Issuance Expense0.55 Semi Annual - Discount Amortization
                          $       1                                                                             $                         47.17




                  125,000    Face Value                      125,000    Face Value
                      97%                                         8%    Rate
                  121,250                                     10,000    Annual Coupon Payment
                    2,500                                          2
                  123,750    Cash                              5,000    Semi-annual coupon payment



                                                     Supplemental T-Accounts

               Unamortized Issuance Cost                                                    Discount on Bonds Payable
 3/31/2010             839                                 3/31/2010                               3750
 6/30/2010                            5.28                 6/30/2010                                                                      23.58
12/31/2010                           10.55                12/31/2010                                                                      47.17
   Balance $       823.17                                    Balance $                         3,679.25

                                Total Bond Discount and Issue Cost
                              Issue Cost:      $             823.17
                             Plus: Discount    $           3,679.25
                             Total:            $           4,502.42

								
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