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LO14-1 Account for de securitime unds of North Corporation to yield 10 The bonds pay 9% interest, payable on a semiannual basis each July and
LO14-1 Account for de securitime unds of North Corporation to yield 10 The bonds pay 9% interest, payable on a semiannual basis each July and January 1, and mature in three years only. The bonds are classified as held-to-maturity securities. The annual reporting period ends December 31. Assume the straight line interest method of amortization of any discount or premium Amortization Schedule Journal Entries in Year 1 Financial Statement Presentation Journal Entries in Year 2 Demo 14-16 HTMinted b. Record the entry for the purchase of the bonds by West Company on July 1. Credit Date Account Name Jul 1. Yeart investment in HTM Securities Cash To record instant chase. Debit 72.920 0 v 77.970 c. Record the adjusting entry by West Company on December 31. The fair value of the bonds at December 31 was $81,000. Credit Date Account Name Dec 31, Year 1 Cash Investment in HTM Securities Interest Revenue To record year end adjusting entry Debit 3.600 0 0 2.030 x 81.000 Check LO14-1 Account for de securitime unds of North Corporation to yield 10 The bonds pay 9% interest, payable on a semiannual basis each July and January 1, and mature in three years only. The bonds are classified as held-to-maturity securities. The annual reporting period ends December 31. Assume the straight line interest method of amortization of any discount or premium Amortization Schedule Journal Entries in Year 1 Financial Statement Presentation Journal Entries in Year 2 Demo 14-16 HTMinted b. Record the entry for the purchase of the bonds by West Company on July 1. Credit Date Account Name Jul 1. Yeart investment in HTM Securities Cash To record instant chase. Debit 72.920 0 v 77.970 c. Record the adjusting entry by West Company on December 31. The fair value of the bonds at December 31 was $81,000. Credit Date Account Name Dec 31, Year 1 Cash Investment in HTM Securities Interest Revenue To record year end adjusting entry Debit 3.600 0 0 2.030 x 81.000 Check LO14-1 Ace On July 1 of the current year, West Company purchased for cash, 8, 510,000 bonds of North Corporation to yield 10m. The bonds pay 9% interest, payable on a semiannual basis each July 1 and January 1, and mature in three years on July 1. The bonds are classified as held-to-maturity securities. The annual reporting period ends December 31. Assume the straight- line interest method of amortization of any discount or premium. Amortization Schedule Journal Entries in Year 1 Financialstatement Presentation Journal Entries in Year 2 Demo 14.1 d. Indicate the effects of this investment on the current year's income statement and year-end balance sheet Income Statement Year 1 Balance Sheet Dec. 31, Year 1 Other Revenues and Gains Interest revenue 5 3.899 X Assets Interest receivable $ 78.268 X Investment in HTM Securities 5 3.600 X Check Question 1 Partially correct Mark 1.76 out of 4.00 Flag question Intermediate Accounting, 2 LO14-1 Account for debts On July 1 of the current year, West Company purchased for cash. 8. $10,000 bonds of North Corporation to yield 104. The bonds pay 9 interest, payable on a semiannual basis each July 1 and January 1, and mature in three years on July 1. The bonds are classified as held-to-maturity securities. The annual reporting period ends December 31. Assume the straight line interest method of amortization of any discount or premium. Amortization Schedule Journal Entries in Year Financial Statement Presentation Journal Entries in Year 2 Demo 14-1D HIM Investme a. Prepare a bond amortization schedule for the current year and the following year using the straight line interest method. Note: Round each amount entered into the schedule below to the nearest whole dollar. Date stated Interest Jul. 1. Year 1 Jan 1. Year 25 Jul. 1. Year 2 Market Discount Bond Interest Amortization Amortized Cost 5 77.970 39383 338 78.308 3.938 338 78.646 2.600S 31600 Check LO14-1 Account for de securitime unds of North Corporation to yield 10 The bonds pay 9% interest, payable on a semiannual basis each July and January 1, and mature in three years only. The bonds are classified as held-to-maturity securities. The annual reporting period ends December 31. Assume the straight line interest method of amortization of any discount or premium Amortization Schedule Journal Entries in Year 1 Financial Statement Presentation Journal Entries in Year 2 Demo 14-16 HTMinted b. Record the entry for the purchase of the bonds by West Company on July 1. Credit Date Account Name Jul 1. Yeart investment in HTM Securities Cash To record instant chase. Debit 72.920 0 v 77.970 c. Record the adjusting entry by West Company on December 31. The fair value of the bonds at December 31 was $81,000. Credit Date Account Name Dec 31, Year 1 Cash Investment in HTM Securities Interest Revenue To record year end adjusting entry Debit 3.600 0 0 2.030 x 81.000 Check LO14-1 Account for de securitime unds of North Corporation to yield 10 The bonds pay 9% interest, payable on a semiannual basis each July and January 1, and mature in three years only. The bonds are classified as held-to-maturity securities. The annual reporting period ends December 31. Assume the straight line interest method of amortization of any discount or premium Amortization Schedule Journal Entries in Year 1 Financial Statement Presentation Journal Entries in Year 2 Demo 14-16 HTMinted b. Record the entry for the purchase of the bonds by West Company on July 1. Credit Date Account Name Jul 1. Yeart investment in HTM Securities Cash To record instant chase. Debit 72.920 0 v 77.970 c. Record the adjusting entry by West Company on December 31. The fair value of the bonds at December 31 was $81,000. Credit Date Account Name Dec 31, Year 1 Cash Investment in HTM Securities Interest Revenue To record year end adjusting entry Debit 3.600 0 0 2.030 x 81.000 Check LO14-1 Ace On July 1 of the current year, West Company purchased for cash, 8, 510,000 bonds of North Corporation to yield 10m. The bonds pay 9% interest, payable on a semiannual basis each July 1 and January 1, and mature in three years on July 1. The bonds are classified as held-to-maturity securities. The annual reporting period ends December 31. Assume the straight- line interest method of amortization of any discount or premium. Amortization Schedule Journal Entries in Year 1 Financialstatement Presentation Journal Entries in Year 2 Demo 14.1 d. Indicate the effects of this investment on the current year's income statement and year-end balance sheet Income Statement Year 1 Balance Sheet Dec. 31, Year 1 Other Revenues and Gains Interest revenue 5 3.899 X Assets Interest receivable $ 78.268 X Investment in HTM Securities 5 3.600 X Check Question 1 Partially correct Mark 1.76 out of 4.00 Flag question Intermediate Accounting, 2 LO14-1 Account for debts On July 1 of the current year, West Company purchased for cash. 8. $10,000 bonds of North Corporation to yield 104. The bonds pay 9 interest, payable on a semiannual basis each July 1 and January 1, and mature in three years on July 1. The bonds are classified as held-to-maturity securities. The annual reporting period ends December 31. Assume the straight line interest method of amortization of any discount or premium. Amortization Schedule Journal Entries in Year Financial Statement Presentation Journal Entries in Year 2 Demo 14-1D HIM Investme a. Prepare a bond amortization schedule for the current year and the following year using the straight line interest method. Note: Round each amount entered into the schedule below to the nearest whole dollar. Date stated Interest Jul. 1. Year 1 Jan 1. Year 25 Jul. 1. Year 2 Market Discount Bond Interest Amortization Amortized Cost 5 77.970 39383 338 78.308 3.938 338 78.646 2.600S 31600 Check
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