Week 3 Team Assignments

Week 3 Team Assignments - ACC 423: Learning Team C Week 3...

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Unformatted text preview: ACC 423: Learning Team C Week 3 Assignments Cory Jenkins, Dana Turkovich, Jessie Connell, & Daphane Morga P17-1 (Debt Securities) Presented below is an amortization schedule related to Kathy Baker Company's 5-yea $100,000 bond with a 7% interest rate and a 5% yield, purchased on December 31, 2004, for $108,660. 12/31/2004 $10 12/31/2005 $7,000 $5,433 $1,567 107,0 12/31/2006 7,000 5,354 1,646 105, 12/31/2007 7,000 5,272 1,728 103, 12/31/2008 7,000 5,186 1,814 101, 12/31/2009 7,000 5,095 1,905 100, The following schedule presents a comparision of the amortization cost and fair value of the bonds at year-end Amortization Cost $107,093 $105,447 $103,719 $101,905 100,000 Fair Value $106,500 $107,500 $105,650 $103,000 100,000 a) Prepare the journal entry to record the purchase of these bonds on December 31, 2004, assuming the bonds held-to-maturity securities. Dec. 31, 2004 Held-to-Maturity Securities 108,660 Cash 108,660 b) Prepare the journal entry(ies) related to held-to-maturity bonds for 2005. Dec. 31, 2005 Cash 7,000 Held-to-Maturity securities 1,567 Interest Revenue 5,433 c) Prepare the journal entry (ies) related to held-to-maturity bonds for 2007. Dec. 31, 2007 Cash 7,000 Held-to-Maturity securities 1,728 Interest Revenue 5,272 d) Prepare the journal entry(ies) to record the purchase of these bonds, assuming they are classified as availab Dec. 31, 2004Dec....
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Week 3 Team Assignments - ACC 423: Learning Team C Week 3...

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