3-22-11 Solutions

3-22-11 Solutions - EXERCISE 17-1 (a) 1 (b) 2 (c) 1 (d) 2...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
(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 *Rounded by 75¢. 1
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

Page1 / 5

3-22-11 Solutions - EXERCISE 17-1 (a) 1 (b) 2 (c) 1 (d) 2...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online