1_17_Template_NEW_for_Homework_Assignments_Chapter_17_X120C_Interm_Actg_13th_edition (1)

Intermediate Accounting

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Unformatted text preview: Week 1 17_Answers_to_Homework_Assignments_NEW_Chapter_17_X120C_Interm_Act g_13 th _edition EXERCISE 17-2 (1015 minutes) (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 17-5 (2030 minutes) (a) Schedule of Interest Revenue and Bond Discount Amortization Straight-line Method 9% Bond Purchased to Yield 12% Date Cash Received Interest Revenue Bond Discount Amortization Carrying Amount of Bonds 1/1/10 $278,384 12/31/10 $27,000 34,205 7205* 285,589 12/31/11 27,000 34,205 7205 292,794 12/31/12 27,000 34,206 7205 300,000 * *($300,000 $278,384) 3 = $7,205 **Rounded by $1. (b) Schedule of Interest Revenue and Bond Discount Amortization Effective-Interest Method 9% Bond Purchased to Yield 12% Date Cash Received Interest Revenue Bond Discount Amortization Carrying Amount of Bonds 1/1/10 $278,384.00 12/31/10 $27,000 33,406.08* 6406.08 284,790.08 12/31/11 27,000...
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1_17_Template_NEW_for_Homework_Assignments_Chapter_17_X120C_Interm_Actg_13th_edition (1)

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