#1.

on Jan. 1, 20x1, ABC Co. acquired 1,000, 12%, $1,000 bonds from XYZ, Inc. for $941,726. The bonds are classified at amortized cost. The principle matures on Jan. 1, 20x5; however, interest is due to annually every Jan 1. The effective interest rate is 14%.

Requirement:

a. Prepare the amortization table.

b. How much is the unamortized discount or premium on Dec. 31, 20x2?

C. Prepare Journal entries in 20x1 and 20x2.

#2

on Jan. 1, 20x1, ABC Co. acquired 1,000, 12%, $1,000 bonds from XYZ, Inc. for $1,075,939. The bonds are classified at amortized cost. The principle matures on Jan. 1, 20x4; however, interest is due to annually every Jan 1. The effective interest rate is 9%.

Requirement:

a. Prepare the amortization table.

#3

On jan. 1, 2x1, ABC co. acquires 100, 10%, 3-year, $5,000 bonds.

Requirement:

A. The bond are acquired for $428,567. Transaction cost equal to 5% of the face amount are incurred. The effective interest rate adjusted for the transaction cost is 9%.

B. The bonds are acquired for $487,656. Transaction cost equal to 5% of the face amount are incurred. The effective interest rate adjusted for the transaction cost is 9%.

#4

on Jan. 1, 20x1, ABC Co. acquired 14%, $2,000,000 bonds for $1,996,073. The bonds mature on Dec. 31. ABC Co. incurred transaction cost of $100,000 on the acquisition. The bonds are measured at amortized cost. The effective interest rate adjusted for the effect of the transaction cost is 12%

Requirement:

a. Prepare the amortization table

b. Prepare all of the Journal entries.

#5

Use the facts in Number 4. Assume that on September 30, 20x2, the bonds were sold for $2,400,000.

Requirement:

A. provide the entries on the date of sale.