Week 3 - Journal Entries 1 Journal Entries August 1, 2011...

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Journal Entries 1 Journal Entries August 1, 2011 Marla Sabater ACC/545 Karen L. DeMichelis, CMA
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Journal Entries 2 1. On January 1, 2006, Jamona Corp. purchased 12% bonds, having a maturity value of $300,000, for $322,744.44. The bonds provide the bondholders with a 10% yield. They are dated January 1, 2006, and mature January 1, 2011, with interest receivable December 31 of each year. The company uses the effective-interest method to allocate unamortized discount or premium. The bonds are classified as available-for-sale. The fair value of the bonds at December 31 of each year is as follows: (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 Securitie 3,725.56 Interest Revenue. ................................................................ 32,274.44 Securities Fair Value Adjustment Available for Sale 1,481.12 Unrealized Holding Gain or Loss Equity 1,481.12 (c) December 31, 2007 Unrealized Holding Gain or Loss—Equity 7,401.89 Securities Fair Value Adjustment Available for Sale 7,401.89
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Week 3 - Journal Entries 1 Journal Entries August 1, 2011...

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