Journal entry for Jamona Corp

Journal entry for Jamona Corp - 1) Journal entry for Jamona...

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1) Journal entry for Jamona Corp. investments in bonds using effective interest method: January 1, 2006 Available-for-sale Securities $322,744.44 Cash $322,744.44 12% Bonds purchased to yield 10% Date Cash received Interest revenue Bond premium Amortization Carrying amount of bonds Jan. 1, 2006 322,744.44 Dec. 31, 2006 18000 15,755.56 2,244.44 320,500 Dec. 31, 2007 18000 6,500 11,500 309,000 Dec. 31, 2008 18000 17,000 1,000 308,000 Dec. 31, 2009 18000 20,000 -2,000 310,000 Dec. 31, 2010 18000 8,000 10,000 300,000 Total 90,000 51,955.56 22,744.44 Cash $18,000 (300,000 x .12 x .5) Interest revenue $16,137.22 (322,744.44 x .10 x .5) Available for sale securities $1,862.78 (18,000 – 16,137.22) $320,881.66 (322,744.44 – 1,862.78) On January 1, 2011 when the bonds matue, the total cash received will be $90,000, the interest revenue will be $51,955.56, and the bond premium amortization will be $22,744.44 ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ 2) Journal entry for Inventory, using Average cost Method – Periodic inventory
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Journal entry for Jamona Corp - 1) Journal entry for Jamona...

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