Ch17_HW_Solutions

Ch17_HW_Solutions - EXERCISE 17-1 (510 minutes) (a) 1 (b) 2...

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Unformatted text preview: EXERCISE 17-1 (510 minutes) (a) 1 (b) 2 (c) 1 (d) 2 (e) 2 (f) 3 EXERCISE 17-2 (1015 minutes) (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 EXERCISE 17-3 (1520 minutes) (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. 17-1 EXERCISE 17-3 (Continued) (c) December 31, 2006 Cash........................................................................ 36,000 Held-to-Maturity Securities.......................... 3,725.56 Interest Revenue........................................... 32,274.44 (d) December 31, 2007 Cash........................................................................ 36,000 Held-to-Maturity Securities.......................... 4,098.11 Interest Revenue........................................... 31,901.89 EXERCISE 17-4 (1015 minutes) (a) January 1, 2006 Available-for-Sale Securities............................... 322,744.44 Cash................................................................ 322,744.44 (b) December 31, 2006 Cash........................................................................ 36,000 Available-for-Sale Securities........................ 3,725.56 Interest Revenue ($322,744.44 X .10).......... 32,274.44 Securities Fair Value Adjustment (Available-for-Sale)........................................... 1,481.12 Unrealized Holding Gain or Loss Equity ($320,500.00 $319,018.88).......... 1,481.12 (c) December 31, 2007 Unrealized Holding Gain or LossEquity.......... 7,401.89 Securities Fair Value Adjustment (Available-for-Sale).................................... 7,401.89 17-2 EXERCISE 17-4 (Continued) Amortized Cost Fair Value Unrealized Holding Gain (Loss) Available-for-sale bonds $314,920.77 $309,000.00 $(5,920.77) Previous securities fair value adjustmentDr. 1,481.12 Securities fair value adjustmentCr. $(7,401.89 ) EXERCISE 17-6 (1015 minutes) (a) Securities Fair Value Adjustment (Trading)................................................................. 5,000...
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This note was uploaded on 02/25/2011 for the course ACCT 3021 taught by Professor Delaune during the Fall '06 term at LSU.

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Ch17_HW_Solutions - EXERCISE 17-1 (510 minutes) (a) 1 (b) 2...

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