ch17HW&OtherSolutions

ch17HW&OtherSolutions - CHAPTER 17 Investments EXERCISE...

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CHAPTER 17 Investments EXERCISE 17-1 (a) 1 (b) 2 (c) 1 (d) 2 (e) 3 (f) 2 EXERCISE 17-2 (a) January 1, 2010 Held-to-Maturity Securities. ............................... 300,000 Cash. ............................................................. 300,000 (b) December 31, 2010 Cash. .................................................................... 30,000 Interest Revenue. ........................................ 30,000 (c) December 31, 2011 Cash. .................................................................... 30,000 Interest Revenue. ........................................ 30,000 EXERCISE 17-3 (a) January 1, 2009 Held-to-Maturity Securities. ............................... 537,907.40 Cash. ............................................................. 537,907.40 (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 1/1/09 $537,907.40 12/31/09 $60,000 $53,790.74 $6,209.26 531,698.14 12/31/10 60,000 53,169.81 6,830.19 524,867.95 12/31/11 60,000 52,486.80 7,513.20 517,354.75 12/31/12 60,000 51,735.48 8,264.52 509,090.23 12/31/13 60,000 50,909.77* * 9,090.23 500,000.00
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*Rounded by 75¢.
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EXERCISE 17-3 (Continued) (c) December 31, 2009 Cash. ....................................................................... 60,000 Held-to-Maturity Securities. ......................... 6,209.26 Interest Revenue. .......................................... 53,790.74 (d) December 31, 2010 Cash. ....................................................................... 60,000 Held-to-Maturity Securities. ......................... 6,830.19 Interest Revenue. .......................................... 53,169.81 EXERCISE 17-4 (a) January 1, 2009 Available-for-Sale Securities. .............................. 537,907.40 Cash. ............................................................... 537,907.40 (b) December 31, 2009 Cash. ....................................................................... 60,000 Available-for-Sale Securities. ....................... 6,209.26 Interest Revenue ($537,907.40 X .10). ......... 53,790.74 Securities Fair Value Adjustment (Available-for-Sale). .......................................... 2,501.86 Unrealized Holding Gain or Loss— Equity ($534,200.00 – $531,698.14). ......... 2,501.86 (c) December 31, 2010 Unrealized Holding Gain or Loss—Equity. ......... 12,369.81 Securities Fair Value Adjustment (Available-for-Sale). ................................... 12,369.81
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EXERCISE 17-4 (Continued) Amortized Cost Fair Value Unrealized Holding Gain (Loss) Available-for-sale bonds $524,867.95 $515,000.00 $ (9,867.95) Previous securities fair value adjustment—Dr. 2,501.86 Securities fair value adjustment—Cr. $(12,369.81 ) EXERCISE 17-7 (a) December 31, 2010 Unrealized Holding Gain or Loss—Income. ............ 1,400 Securities Fair Value Adjustment (Trading). ... 1,400 (b) During 2011 Cash. ........................................................................... 9,500
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This note was uploaded on 04/14/2010 for the course TOBIN 630 taught by Professor Alan during the Fall '10 term at Adams State University.

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ch17HW&OtherSolutions - CHAPTER 17 Investments EXERCISE...

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