On January 1, 2016, Rodgers Company purchased $200,000 face value, 10%, 3-year bonds for $190,165.35, a price that yields a 12% effective annual interest rate. The bonds pay interest semiannually on June 30 and December 31.

Required:

1.	Record the purchase of the bonds.
2.	Prepare an investment interest income and discount amortization schedule using the effective interest method.
3.	Record the receipts of interest on June 30, 2016, and June 30, 2018.

Record the purchase of the bonds on January 1, 2016. Additional Instructions

All transactions on this page must be entered (except for post ref(s)) before you will receive Check My Work feedback.

PAGE 2016

GENERAL JOURNAL

Score: 12/25

	DATE	ACCOUNT TITLE	POST. REF.	DEBIT	CREDIT
1
2

Points:

2.4 / 5

Record the receipts of interest on June 30, 2016, and June 30, 2018. Additional Instructions

All transactions on this page must be entered (except for post ref(s)) before you will receive Check My Work feedback.

PAGE 2016PAGE 2018

GENERAL JOURNAL

Score: 40/77

	DATE	ACCOUNT TITLE	POST. REF.	DEBIT	CREDIT
1
2
3

Prepare an investment interest income and discount amortization schedule using the effective interest method. Additional Instructions

Score: 0/100

RODGERS COMPANY

Bond Investment Interest Income and Discount Amortization Schedule

Effective Interest Method

1	Date	Cash Debit	Interest Income Credit	Investment in Debt Securities Debit	Carrying Value of Debt Securities
2	01/01/16
3	06/30/16
4	12/31/16
5	06/30/17
6	12/31/17
7	06/30/18
8	12/31/18