(Debt Securities) 2 Presented below is an amortization schedule related to Spangler Company's 5-year, $100,000 bond with a 7% interest rate and a 5% yield, purchased on December 31, 2012, for $108,660. Date Cash Received Interest Revenue Bond Premium Amortization Carrying Amount of Bonds 12/31/12 $108,660 12/31/13 $7,000 $5,433 $1,567 107,093 12/31/14 7,000 5,354 1,646 105,447 12/31/15 7,000 5,272 1,728 103,719 12/31/16 7,000 5,186 1,814 101,905 12/31/17 7,000 5,095 1,905 100,000 The following schedule presents a comparison of the amortized cost and fair value of the bonds at year-end. 12/31/13 12/31/14 12/31/15 12/31/16 12/31/17 Amortized cost $107,093 $105,447 $103,719 $101,905 $100,000 Fair value $106,500 $107,500 $105,650 $103,000 $100,000 Instructions (a) Prepare the journal entry to record the purchase of these bonds on December 31, 2012, assuming the bonds are classified as held-to-maturity securities. (b) Prepare the journal entry(ies) related to the held-to-maturity bonds for 2013. (c) Prepare the journal entry(ies) related to the held-to-maturity bonds for 2015. (d) Prepare the journal entry(ies) to record the purchase of these bonds, assuming they are classified as available-for-sale. (e) Prepare the journal entry(ies) related to the available-for-sale bonds for 2013. (f) Prepare the journal entry(ies) related to the available-for-sale bonds for 2015.
Solved
Show answers
More tips
- C Computers and Internet Why is Yandex s robot Bless.yandex.ru Important?...
- S Science and Technology How to Restore the Diamond Shine to Your Tarnished Silverware...
- C Computers and Internet What Are Peers and Seeds in Torrenting?...
- L Leisure and Entertainment How to Find a Phone Number by Address: The Ultimate Guide...
- F Food and Cooking Pu-erh Tea: History, Varieties, Benefits, and Risks...
- S Style and Beauty Why is Sugaring Better than Waxing for Hair Removal?...
- C Computers and Internet How to Delete a Page on VKontakte: The Ultimate Guide from Experts...
- F Food and Cooking How to Make Delicious Plov: Secrets and Recipes...
- H Health and Medicine 10 Simple Techniques on How to Boost Your Mood...
- L Leisure and Entertainment Unlocking the Secrets of Winning the Lottery...
Answers on questions: Business
- B Business Which of the following best explains why companies like Amazon and Wal- Mart can sell things more cheaply than others who sell the same products?O A. They pay lower...
- B Business What kind of professional conduct is expected from financial professionals while dealing with clients or organizations? It is the ( ) of accounting professionals...
- B Business IFRS reporting requires all of the following items except...
- B Business ___ occurs when businesses offering competitive products attempt to satisfy the same customers wants and needs...
- B Business You are considering the purchase of a certain stock. you expect to own the stock for the next four years. the current market price of the stock is $24.50 and you...
- B Business Acompany s competitive strategy select one: a. specifies the portfolio of new products that it will try to develop. b. determines the nature of procurement and...
- M Mathematics Which inequality is graphed below?...
- M Mathematics Given the equation, y=3x – 7 what is the slope of the line?...
- M Mathematics What fraction is equivalent to the decimal 1.85?...
- C Chemistry What is the chemical name of the compound cu2co3? copper (i) carbonate copper (ii) carbonate copper (iii) carbonate (ii) copper (iii) carbonate copper carbonate...
Ответ:
Answer and Explanation:
The Journal entry is shown below:-
a. Investment in bonds Dr, $100,000
Premium on bonds Dr, $8,660
To Cash $108,660
(Being purchase of bonds above face value is recorded)
b. Cash Dr, $7,000
To interest revenue $5,433
To premium amortization $1,567
(Being interest revenue earned, received and premium on bonds amortization is recorded)
c. Cash Dr, $7,000
To interest revenue $5,354
To premium amortization $1,646
(Being interest revenue earned, received and premium on bonds amortization is recorded)
d. Cash Dr, $7,000
To interest revenue $5,272
To premium amortization $1,728
(Being interest revenue earned, received and premium on bonds amortization is recorded)
e. Investment in bonds Dr, $100,000
Premium on bonds Dr, $8,660
To Cash $108,660
(Being purchase of bonds above face value is recorded)
f. Investment in bonds Dr, $108,660
To Cash $108,660
(Being purchase of bonds above face value is recorded)
Ответ:
Nrnnfkkk
Explanation:
Ndkdkdmdmdmdldjdkssj