ABC Co. acquired $250,000, 12%, bonds at on Jan 1, 2003. The bonds are matured at Jan 1, 2006. Bond intrests are payable on January 1 and July 1. Prepare the amortization schedule and related journal entries for the following cases: 1. If market interest rate is 16%. The acquisition cost is $226,886. 2. If market interest rate is 6%. The acquisition cost is $290,629.

HW1	ABC Co. acquired $250,000, 12%, bonds at on Jan 1, 2003. The bonds are matured at Jan 1, 2006. Bond intrests are payable on January 1 and July 1. Prepare the amortization schedule and related journal entries for the following cases: 1. If market interest rate is 16%. The acquisition cost is $226,886. 2. If market interest rate is 6%. The acquisition cost is $290,629.
1.	Periods	Cash	Interest Revenue	Discount Amortization	Carrying Value of Bond
	1/1/03				226,886
	7/1/03	15,000	18,151	3,151	230,037
	1/1/04	15,000	18,403	3,403	233,440
	7/1/04
	1/1/05
	7/1/05
	1/1/06
	Related Journal Entries:
	Please make related journal entries to record the transactions and the ajdusting entries in 2003 and 2004.

2.	Periods	Cash	Interest Revenue	Premium Amortization	Carrying Value of Bond
	1/1/03
	7/1/03
	1/1/04
	7/1/04
	1/1/05
	7/1/05
	1/1/06
	Related Journal Entries:
	Please make related journal entries to record the transactions and the ajdusting entries in 2003 and 2004.