1. Be prepared to explain how to prepare the journal entries for the following situations.
   1. XYZ, Inc. purchased the 100, $1,000 5-year bonds of ABC, Inc. with a stated interest rate of 6% for $104,376 on 1/1/17. The bonds pay interest semi-annually on June 30^th and December 31^st each year. The firm has designated them as held to maturity. How is the purchase recorded?
2. 2. Use Excel to prepare a complete amortization schedule for this bond and submit it to the Session 10 Discussion Excel File assignment in Bright space. Use the data youre your amortization schedule to fill in the interest expense and premium amortization amounts for this and the following questions. Record the receipt of the interest payment and interest income on 6/30/17. I have attached a short tutorial video to the module for this assignment to help you with your Excel file.
3. 3. Record the receipt of the interest payment and interest income on 12/31/17. What value would be shown for the bond on their 12/31/17 balance sheet?
4. 4. Record the sale of the bonds on 11/30/2021 for $101,000.
5. Given the same information( by the same information it is talking about the info listed on question 1) about the bonds in except that they were classified as available for sale, record the following events. The entry recording the initial bond purchase does not differ by classification of the bond (held to maturity, trading, or available for sale).
   1. Record the receipt of the interest payment and interest income on 6/30/17.
6. 2. Record the receipt of the interest payment and interest income on 12/31/17. What value would be shown for the bond on their 12/31/17 balance sheet?
7. 3. Record the adjustment of their fair for the balance sheet dated 12/31/2017 when the fair market value was $105,000.
8. 4. Record the sale of the bonds on 06/30/2018 for $105,000. The firm only produces balance sheets at year end.
9. How would accounting different from the available for sale example if the bonds were classified as trading?