Business, 05.05.2020 22:32 katiebotts18

Presented below is an amortization schedule related to Spangler Company’s 5-year, $135,300 bond with a 7% interest rate and a 5% yield, purchased on December 31, 2012, for $147,017.
Date Cash Received Interest Revenue Bond Premium Amortization Carrying Amount of Bonds
12/31/12 $147,017
12/31/13 $9,471 $7,351 $2,120 144,897
12/31/14 9,471 7,245 2,226 142,671
12/31/15 9,471 7,134 2,337 140,334
12/31/16 9,471 7,017 2,454 137,880
12/31/17 9,471 6,894 2,580 135,300
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 $144,897 $142,671 $140,334 $137,880 $135,300
Fair value $144,373 $144,753 $142,204 $138,973 $135,300
Required:
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 related to the held-to-maturity bonds for 2013.
(c) Prepare the journal entry related to the held-to-maturity bonds for 2015.
(d) Prepare the journal entry to record the purchase of these bonds, assuming they are classified as available-for-sale.
(e) Prepare the journal entries related to the available-for-sale bonds for 2013.
(f) Prepare the journal entries related to the available-for-sale bonds for 2015.

Answers: 2

Show answers

Another question on Business

Business, 21.06.2019 17:10

Acompany manufactures hair dryers. it buys some of the components, but it makes the heating element, which it can produce at the rate of 920 per day. hair dryers are assembled daily, 250 days a year, at a rate of 360 per day. because of the disparity between the production and usage rates, the heating elements are periodically produced in batches of 2,300 units. a. approximately how many batches of heating elements are produced annually? b. if production on a batch begins when there is no inventory of heating elements on hand, how much inventory will be on hand 4 days later? c. what is the average inventory of elements, assuming each production cycle begins when there are none on hand?

Answers: 1

Answer

Business, 22.06.2019 05:10

1. descriptive statistics quickly describe large amounts of data can predict future stock returns with surprising accuracy statisticians understand non-numeric information, like colors refer mainly to patterns that can be found in data 2. a 15% return on a stock means that 15% of the original purchase price of the stock returns to the seller at the end of the year 15% of the people who purchased the stock will see a return the stock is worth 15% more at the end of the year than at the beginning the stock has lost 15% of its value since it was originally sold 3. a stock purchased on january 1 cost $4.35 per share. the same stock, sold on december 31 of the same year, brought in $4.75 per share. what was the approximate return on this stock? 0.09% 109% 1.09% 9% 4. a stock sells for $6.99 on december 31, providing the seller with a 6% annual return. what was the price of the stock at the beginning of the year? $6.59 $1.16 $7.42 $5.84

Answers: 3

Answer

Business, 22.06.2019 22:00

What legislation increased the ability for federal authorities to tap telephones and wireless devices, tightened the enforcement of money laundering activities, as well as broadened powers toward acts of terrorism and acts such as drug trafficking?

Answers: 2

Answer

Business, 22.06.2019 23:00

The five steps to financial success a. five money myths b. five foundations

Answers: 1

Answer

You know the right answer?

Presented below is an amortization schedule related to Spangler Company’s 5-year, $135,300 bond with...

Questions