Chapter_17_Investment-new

Chapter_17_Investment-new - Chapter 17: Investment EXERCISE...

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Unformatted text preview: Chapter 17: Investment EXERCISE 17-1 (510 minutes) (a) 1 (b) 2 (c) 1 (d) 2 (e) 3 (f) 2 EXERCISE 17-3 (1520 minutes) (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. (c) December 31, 2009 Cash ..................................................................... 60,000 Held-to-Maturity Securities ......................... 6,209.26 Interest Revenue .......................................... 53,790.74 (d) December 31, 2010 Cash ..................................................................... 60,000 Held-to-Maturity Securities ......................... 6,830.19 Interest Revenue .......................................... 53,169.81 EXERCISE 17-4 (1015 minutes) (a) January 1, 2009 Available-for-Sale Securities .............................. 537,907.40 Cash .............................................................. 537,907.40 (b) December 31, 2009 Cash ..................................................................... 60,000 Available-for-Sale Securities....................... 6,209.26 Interest Revenue ($537,907.40 X .10).......... 53,790.74 Securities Fair Value Adjustment (Available-for-Sale) .......................................... 2,501.86 Unrealized Holding Gain or Loss Equity ($534,200.00 $531,698.14) ......... 2,501.86 (c) December 31, 2010 Unrealized Holding Gain or LossEquity ......... 12,369.81 Securities Fair Value Adjustment (Available-for-Sale) .................................. 12,369.81 Amortized Cost Fair Value Unrealized Holding Gain (Loss) Available-for-sale bonds $524,867.95 $515,000.00 $ (9,867.95) Previous securities fair value adjustmentDr. Securities fair value adjustmentCr. 2,501.86 $(12,369.81 ) EXERCISE 17-10 (2025 minutes) (a) WENGER, INC. Statement of Comprehensive Income For the Year Ended December 31, 2010 ____________________________________________________________ Net income .......................................................................... $120,000 Other comprehensive income Unrealized holding gain arising during year ............. Comprehensive income ..................................................... $121,300 1,300 (b) WENGER, INC....
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This note was uploaded on 09/29/2011 for the course ACCT 302 taught by Professor Staff during the Spring '11 term at S.F. State.

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Chapter_17_Investment-new - Chapter 17: Investment EXERCISE...

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