Homework 22

Homework 22 - Homework 22 M12-1, AP12-1, AP12-2, P12-4...

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Homework 22 M12-1, AP12-1, AP12-2, P12-4 M12-1 1. C 2. D 3. A 4. B 5. B 6. D 7. B AP12-1 Sonic 1. What accounts were affected when bonds were purchased on jan 1, 2011 Jan 1, 2011 Investment in Bond held to maturity 10,000,000 Premium on bond 300,000 Cash 10,300,000 300,000/8 = 37,500 straight line amortization 2. What accounts were affected when interest was received on June 30, 2011 6/30/11 Cash 400,000 Bond premium 37,500 Interest revenue 362,400 3. Should sonic prepare a journal entry if the market value of the bonds decreased to 9,700,000 on December 31, 2011? No they should not prepare a journal entry if the bonds decreased because the bonds are being held to maturity and therefore there is no effect on cash flows until they are matured.
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AP12-2 On sept 15, 2010 James Media Corp purchased 5,000 shares of community broadcasting co for $32 per share. The following info applies to the stock price of Community Broadcasting: 12/31/2010: $34 12/31/2011 $25 12/31/2012 $21 1. Prepare journal entries to record the facts in the case, assuming that James Media purchasd the
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This note was uploaded on 12/01/2009 for the course H ADM 121 at Cornell.

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Homework 22 - Homework 22 M12-1, AP12-1, AP12-2, P12-4...

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