ACC Week 1 Chapter 17 - ACC 2403 Week 1 Assignment E17-1,...

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ACC 2403 Week 1 Assignment 1. Trading Securities 2. Available-for-Sale Securities 3. Held-to-Maturity Securities Each case is independent of the other. a 1. Trading Securities b 2. Available-for-Sale Securities c 1. Trading Securities d 2. Available-for-Sale Securities e 3. Held-to-Maturity Securities f 2. Available-for-Sale Securities 12% bonds, having a maturity value of $500,000, for $537,907.40. The bonds provide the bondholders with a 10% yield. They are dated January 1, 2009, and mature January 1, 2014, with interest receivable December 31 of each year. Roosevelt Company uses the effective-interest method to allocate unamortized discount or premium. The bonds are classified in the held-to-maturity category. Jan 1, 2009. 12% $500,000 for $537,907.40 10% yield Instructions (a) Prepare the journal entry at the date of the bond purchase. Held-to-Maturity Securities $537,907.40 Cash $537,907.40 $537,907.40 $537,907.40 (b) Prepare a bond amortization schedule. Schedule of Interest Revenue and Bond Amortization
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