Class19 - Solutions

Class19 - Solutions - EXERCISE 17-1 (a) 1 (b) 2 (c) 1 (d) 2...

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EXERCISE 17-1 (a) 1 (b) 2 (c) 1 (d) 2 (e) 2 (f) 3 EXERCISE 17-2 (a) January 1, 2006 Held-to-Maturity Securities. ..................... 300,000 Cash. .................................................... 300,000 (b) December 31, 2006 Cash. .......................................................... 36,000 Interest Revenue. ............................... 36,000 (c) December 31, 2007 Cash. .......................................................... 36,000 Interest Revenue. ............................... 36,000 1
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EXERCISE 17-3 (a) 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% Date Cash Received Interest Revenue Premium Amortized Carrying Amount 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¢. (c) December 31, 2006 Cash. ............................................................. 36,000 Held-to-Maturity Securities. ................ 3,725.56 Interest Revenue. ................................. 32,274.44
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Class19 - Solutions - EXERCISE 17-1 (a) 1 (b) 2 (c) 1 (d) 2...

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