ACCT 5010-INT II-HW-CH 17

ACCT 5010-INT II-HW-CH 17 - CHAPTER 17 EXERCISE 17-1(10-15...

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Unformatted text preview: CHAPTER 17 EXERCISE 17-1 (10-15 minutes) a. 1 b. 2 c. 1 d. 2 e. 2 f. 3 EXERCISE 17-2 (15-20 minutes) (a) January 1, 2003 Held-to-Maturity Securities................................................. 300,000 Cash............................................................................ 300,000 (b) December 31, 2003 Cash ................................................................ 36,000 Interest Revenue......................................................... 36,000 (c) December 31, 2004 Cash ................................................................ 36,000 Interest Revenue......................................................... 36,000 EXERCISE 17-3 (15-20 minutes) (a) January 1, 2003 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% Date Cash Received Interest Revenue Premium Amortized Carrying Amount of Bonds 1/1/03 — — — $322,744.44 12/31/03 $36,000 $32,274.44 $3,725.56 319,018.88 12/31/04 36,000 31,901.89 4,098.11 314,920.77 12/31/05 36,000 31,492.08 4,507.92 310,412.85 12/31/06 36,000 31,041.29 4,958.71 305,454.14 12/31/07 36,000 30,545.86 * 5,454.14* 300,000.00 *Rounded by 45¢. (c) December 31, 2003 17-1 Cash ................................................................ 36,000 Held-to-Maturity Securities....................................... 3,725.56 Interest Revenue......................................................... 32,274.44 (d) December 31, 2004 Cash ................................................................ 36,000 Held-to-Maturity Securities....................................... 4,098.11 Interest Revenue......................................................... 31,901.89 EXERCISE 17-4 (10-15 minutes) (a) January 1, 2003 Available-for-Sale Securities............................................... 322,744.44 Cash............................................................................ 322,744.44 (b) December 31, 2003 Cash .........................................................................36,000 Available-for-Sale Securities..................................... 3,725.56 Interest Revenue......................................................... 32,744.44 Securities Fair Value Adjustment— Available-for-Sale...................................................................... 1,481.12 Unrealized Holding Gain or Loss— Equity ($320,500.00 – $319,018.88)............................... 1,481.12 (c) December 31, 2004 Unrealized Holding Gain or Loss—Equity.............................................. 7,401.89 Securities Fair Value Adjustment— Available-for-Sale............................................................ 7,401.89 Cost Fair Value Unrealized Holding Gain (Loss) Available-for-sale bonds 314,920.77 309,000.00 $(5,920.77) Previous securities fair value adjustment— Dr. 1,481.12 Securities fair value adjustment—Cr....
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This note was uploaded on 06/17/2008 for the course ACCT 5101 taught by Professor Green during the Spring '07 term at University of West Georgia.

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ACCT 5010-INT II-HW-CH 17 - CHAPTER 17 EXERCISE 17-1(10-15...

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