ACT_3392_Chp_17_Homework_Solutions

ACT_3392_Chp_17_Homework_Solutions - Intermediate...

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Intermediate Accounting II Amanda N. Paul, CPA, MBA Troy University
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Chapter 17 EXERCISE 17-3 January 1, 2006 Held-to-Maturity Securities 322,744.44 Cash 322,744.44 (b) Schedule of Interest Revenue and Bond Premium Amortization Effective-Interest Method 12% Bonds Sold to Yield 10% Cash Interest Premium Carrying Amount Date Received Revenue Amortized of Bonds 1/1/06 $322,744.44 12/31/06 $36,000 $32,274.44 $3,725.56 319,018.88 12/31/07 36,000 31,901.89 4,098.11 314,920.77 12/31/08 36,000 31,492.08 4,507.92 310,412.85 12/31/09 36,000 31,041.29 4,958.71 305,454.14 12/31/10 36,000 30,545.86 **5,454.14 300,000.00 *Rounded by 45¢.
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EXERCISE 17-3 continued December 31, 2006 Cash 36,000 Held-to-Maturity Securities 3,725.56 Interest Revenue 32,274.44 (a) December 31, 2007 Cash 36,000 Held-to-Maturity Securities 4,098.11 Interest Revenue 31,901.89
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EXERCISE 17-7 (a) December 31, 2006 Unrealized Holding Gain or Loss—Income 1,400 Securities Fair Value Adjustment (Trading) 1,400 (b) During 2007 Cash 9,400 Loss on Sale of Securities 600 Trading Securities 10,000 (a) December 31, 2007 Unrealized Securities Cost Fair Value Gain (Loss) Clemson Corp. stock $20,000 $19,100 $ (900) Buffaloes Co. stock 20,000 20,500 500 Total of portfolio $40,000 $39,600 (400) Previous securities fair value adjustment balance—Cr. (1,400 ) Securities fair value adjustment—Dr. $ 1,000 Securities Fair Value Adjustment (Trading) 1,000 Unrealized Holding Gain or Loss— Income 1,000
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EXERCISE 17-11 (a) The total purchase price of these investments is:
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ACT_3392_Chp_17_Homework_Solutions - Intermediate...

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