Homework Answers
Part C and D
|
Part |
Account titles and explanation |
Debit |
Credit |
|
C |
Cash |
14000 |
|
|
Debt Investment (Held to Maturity) |
1140 |
||
|
Interest Revenue |
15140 |
||
|
D |
Cash |
14000 |
|
|
Debt Investment (Held to Maturity) |
1136 |
||
|
Interest Revenue |
15136 |
Schedule of Interest Revenue and Bond Discount Amortization
Straight-line Method
10% Bond Purchased to Yield 11%
|
Date |
Cash received |
Interest revenue |
Bond discount amortization |
Carrying amount of bonds |
|
Jan. 1, 2017 |
136579 |
|||
|
Dec. 31, 2017 |
14000 (140000*10%) |
15140 (14000+1140) |
1140(140000-136579)/3 |
137719 (136579+1140) |
|
Dec. 31, 2018 |
14000 |
15140 |
1140 |
138859 (137719+1140) |
|
Dec. 31, 2019 |
14000 |
15141 |
1141 |
140000 (138859+1141) |
Schedule of Interest Revenue and Bond Discount Amortization
Effective Interest Method
10% Bond Purchased to Yield 11%
|
Date |
Cash received |
Interest revenue |
Bond discount amortization |
Carrying amount of bonds |
|
Jan. 1, 2017 |
136579 |
|||
|
Dec. 31, 2017 |
14000 (140000*10%) |
15024 (136579*11%) |
1024 (15024-14000) |
137603 (136579+1024) |
|
Dec. 31, 2018 |
14000 |
15136 (137603*11%) |
1136 (15136.30 -14000) |
138739 (137603+1136) |
|
Dec. 31, 2019 |
14000 |
15261 (138739*11%) |
1261 (15261-14000) |
140000 (138739+1261) |
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Exercise 17-5 (Part Level Submission) On January 1, 2017, Metock Company acquires $140,000 of Spiderman Products,...
Exercise 17-5 (Part Level Submission) On January 1, 2017, Metock Company acquires $140,000 of Spiderman Products,...
Exercise 17-5 (Part Level Submission) On January 1, 2017, Metock Company acquires $140,000 of Spiderman Products, Inc., 10% bonds at a price of $136,579. Interest is received on January 1 of each year, and the bonds mature on January 1, 2020. The investment will provide Metlock Company a 11% yield. The bonds are classified as held to maturity ▼ (b) Prepare a 3-year schedule o interest revenue and bond discount amortization, app ying he e ective-interest me od Run ansı...
Exercise 17-5 (Part Level Submission) On January 1, 2017, Metlock Company acquires $140,000 of Spiderman Products,...
Exercise 17-5 (Part Level Submission) On January 1, 2017, Metlock Company acquires $140,000 of Spiderman Products, Inc., 10% bonds at a price of $136,579. Interest is received on January 1 of each year, and the bonds mature on January 1, 2020. The investment will provide Metlock Company a 11% yield. The bonds are classified as held-to-maturity. ▼ (a) Prepare a 3-year schedule of interest revenue and bond discount amortization, applying the straight-line method. (Round answers to 0 decimal places, e.g....
Exercise 17-5 On January 1, 2017, Crane Company acquires $160,000 of Spiderman Products, Inc, 10 % bonds at a pri...
Exercise 17-5 On January 1, 2017, Crane Company acquires $160,000 of Spiderman Products, Inc, 10 % bonds at a price of $152,314. Interest is received on January 1 of each year, and the bonds mature on January 1, 2020. The investment will provide Crane Company a 12 % yield . The bonds are dassified as held-to-maturity Prepare a 3-year schedule of interest revenue and bond discount amortization, applying the straight-line method. (Round answers to 0 decimal places, eg. 2,500.) Schedule...
On January 1, 2017, Marin Company acquires $140,000 of Spiderman Products, Inc., 10% bonds at a...
On January 1, 2017, Marin Company acquires $140,000 of
Spiderman Products, Inc., 10% bonds at a price of $136,579.
Interest is received on January 1 of each year, and the bonds
mature on January 1, 2020. The investment will provide Marin
Company a 11% yield. The bonds are classified as
held-to-maturity.
Z Your answer is partially correct. Try again. Prepare a 3-year schedule of interest revenue and bond discount amortization, applying the straight-lim Schedule of Interest Revenue and Bond Discount...
On January 1, 2020, Splish Company acquires $140,000 of Spiderman Products, Inc., 10% bonds at a...
On January 1, 2020, Splish Company acquires $140,000 of Spiderman Products, Inc., 10% bonds at a price of $136,579. Interest is received on January 1 of each year, and the bonds mature on January 1, 2023. The investment will provide Splish Company a 11% yield. The bonds are classified as held-to-maturity. Prepare a 3-year schedule of interest revenue and bond discount amortization, applying the straight-line method.
On January 1, 2020, Sweet Company acquires $130,000 of Spiderman Products, Inc., 9% bonds at a...
On January 1, 2020, Sweet Company acquires $130,000 of Spiderman Products, Inc., 9% bonds at a price of $120,632. Interest is received on January 1 of each year, and the bonds mature on January 1, 2023. The investment will provide Sweet Company a 12% yield. The bonds are dassified as held-to-maturity. Prepare a 3-year schedule of interest revenue and bond discount amortization, applying the straight-line method. (Round answers to 0 decimal places, e.g. 2,500.) Schedule of Interest Revenue and Bond...
On January 1, 2020, Sweet Company acquires $120,000 of Spiderman Products, Inc., 9% bonds at a...
On January 1, 2020, Sweet Company acquires $120,000 of Spiderman Products, Inc., 9% bonds at a price of $114,135. Interest is received on January 1 of each year, and the bonds mature on January 1, 2023. The investment will provide Sweet Company a 11% yield. The bonds are classified as held-to-maturity. Prepare a 3-year schedule of interest revenue and bond discount amortization, applying the straight-line method. (Round answers to o decimal places, e.g. 2,500.) Schedule of Interest Revenue and Bond...
Exercise 17-3 (Part Level Submission) On January 1, 2017, Marin Company purchased 10% bonds having a...
Exercise 17-3 (Part Level Submission) On January 1, 2017, Marin Company purchased 10% bonds having a maturity value of $220,000, for $237,567.22. The bonds provide the bondholders with a 8% yield. They are dated January 1, 2017, and mature January 1, 2022, with interest receivable January 1 of each year. Ma discount or premium. The bonds are classified in the held-to-maturity category. (a) Your answer is correct. Prepare the journal entry at the date of the bond purchase. (Enter answers...
On January 1, 2017, Metlock Company purchased 9% bonds having a maturity value of $210,000 for...
On January 1, 2017, Metlock Company purchased 9% bonds having a maturity value of $210,000 for $227,221 68. The bonds provide the bondholders th a 7% yield. They are dated January 1, 2017, and mature January 1, 2022, with interest receivable January 1 of each year. Metlock Company uses the effective-interest method to allocate unamortized discount or premium. The bonds are classified in the held-to-maturity category Prepare the journal entry at the date of the bond purchase. (Enter answers to...
Problem 17-2 On January 1, 2017, Crane Company purchased $310,000, 6% bonds of Aguirre Co. for...
Problem 17-2 On January 1, 2017, Crane Company purchased $310,000, 6% bonds of Aguirre Co. for $284,855. The bonds were purchased to yield 8% interest. Interest is payable semiannually on July 1 and January 1. The bonds mature on January 1, 2022. Crane Company uses the effective-interest method to amortize discount or premium. On January 1, 2019, Crane Company sold the bonds for $286,344 after receiving interest to meet its liquidity needs. Prepare the journal entry to record the purchase...
Exercise 17-5 (Part Level Submission) On January 1, 2017, Metock Company acquires $140,000 of Spiderman Products, Inc., 10% bonds at a price of $136,579. Interest is received on January 1 of each year, and the bonds mature on January 1, 2020. The investment will provide Metlock Company a 11% yield. The bonds are classified as held to maturity ▼ (b) Prepare a 3-year schedule o interest revenue and bond discount amortization, app ying he e ective-interest me od Run ansı...
Exercise 17-5 (Part Level Submission) On January 1, 2017, Metlock Company acquires $140,000 of Spiderman Products, Inc., 10% bonds at a price of $136,579. Interest is received on January 1 of each year, and the bonds mature on January 1, 2020. The investment will provide Metlock Company a 11% yield. The bonds are classified as held-to-maturity. ▼ (a) Prepare a 3-year schedule of interest revenue and bond discount amortization, applying the straight-line method. (Round answers to 0 decimal places, e.g....
Exercise 17-5 On January 1, 2017, Crane Company acquires $160,000 of Spiderman Products, Inc, 10 % bonds at a price of $152,314. Interest is received on January 1 of each year, and the bonds mature on January 1, 2020. The investment will provide Crane Company a 12 % yield . The bonds are dassified as held-to-maturity Prepare a 3-year schedule of interest revenue and bond discount amortization, applying the straight-line method. (Round answers to 0 decimal places, eg. 2,500.) Schedule...
On January 1, 2017, Marin Company acquires $140,000 of
Spiderman Products, Inc., 10% bonds at a price of $136,579.
Interest is received on January 1 of each year, and the bonds
mature on January 1, 2020. The investment will provide Marin
Company a 11% yield. The bonds are classified as
held-to-maturity.
Z Your answer is partially correct. Try again. Prepare a 3-year schedule of interest revenue and bond discount amortization, applying the straight-lim Schedule of Interest Revenue and Bond Discount...
On January 1, 2020, Sweet Company acquires $130,000 of Spiderman Products, Inc., 9% bonds at a price of $120,632. Interest is received on January 1 of each year, and the bonds mature on January 1, 2023. The investment will provide Sweet Company a 12% yield. The bonds are dassified as held-to-maturity. Prepare a 3-year schedule of interest revenue and bond discount amortization, applying the straight-line method. (Round answers to 0 decimal places, e.g. 2,500.) Schedule of Interest Revenue and Bond...
On January 1, 2020, Sweet Company acquires $120,000 of Spiderman Products, Inc., 9% bonds at a price of $114,135. Interest is received on January 1 of each year, and the bonds mature on January 1, 2023. The investment will provide Sweet Company a 11% yield. The bonds are classified as held-to-maturity. Prepare a 3-year schedule of interest revenue and bond discount amortization, applying the straight-line method. (Round answers to o decimal places, e.g. 2,500.) Schedule of Interest Revenue and Bond...
Exercise 17-3 (Part Level Submission) On January 1, 2017, Marin Company purchased 10% bonds having a maturity value of $220,000, for $237,567.22. The bonds provide the bondholders with a 8% yield. They are dated January 1, 2017, and mature January 1, 2022, with interest receivable January 1 of each year. Ma discount or premium. The bonds are classified in the held-to-maturity category. (a) Your answer is correct. Prepare the journal entry at the date of the bond purchase. (Enter answers...
On January 1, 2017, Metlock Company purchased 9% bonds having a maturity value of $210,000 for $227,221 68. The bonds provide the bondholders th a 7% yield. They are dated January 1, 2017, and mature January 1, 2022, with interest receivable January 1 of each year. Metlock Company uses the effective-interest method to allocate unamortized discount or premium. The bonds are classified in the held-to-maturity category Prepare the journal entry at the date of the bond purchase. (Enter answers to...
Problem 17-2 On January 1, 2017, Crane Company purchased $310,000, 6% bonds of Aguirre Co. for $284,855. The bonds were purchased to yield 8% interest. Interest is payable semiannually on July 1 and January 1. The bonds mature on January 1, 2022. Crane Company uses the effective-interest method to amortize discount or premium. On January 1, 2019, Crane Company sold the bonds for $286,344 after receiving interest to meet its liquidity needs. Prepare the journal entry to record the purchase...
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