On January 1, 2017, Nelson Company was started when its sole shareholder invested cash of $147,722 in exchange Nelson Company common stock. The company immediately used all of the cash and purchased two investments. (1) It paid $107,722 for $100,000 face value, 6%, 10 year Lewis Co. bonds dated January 1, 2017 that pay interest annually on December 31, of each year beginning on December 31, 2017. The annual yield rate of the bonds on January 1, 2017 was 5% and (2) it paid $40,000 for 1,000 shares ($40 per share) of Hilton Co. common stock. The bond investment is considered an available for sale security.

Nelsons balance sheet on January 1, 2017 immediately after the 2 purchases was:

Assets Equity

Investments $147,722 Common Stock $147,722

The following information applies to 2017

1. In December of 2017, Nelson received $1,000 cash after Hilton declared and paid a $1 per share cash dividend.

2. On December 31, 2017 Nelson received the annual coupon payment from Lewis Co.

3. Market values on 12/31/17 were:

Hilton Co. stock $48 per share

Lewis Co bonds $103,476

The following information applies to 2018

4. In December of 2018, Nelson received $1,000 cash after Hilton declared and paid a $1 per share cash dividend.

5. On December 31, 2018 Nelson received the annual coupon payment from Lewis Co.

6. Market values on 12/31/18 were:

Hilton Co. stock $55 per share

Lewis Co bonds $100,000

Directions: Complete an amortization schedule for the bond investment on the spreadsheet that was attached to the e-mail that I sent you. Also fill in the correct amounts in the light blue cells on the spreadsheet. These amounts are items appearing on the financial statements of Nelson Company based on the information given above.

1 Amortization Schedule Cash Payment Interest Date 1/1/2017 12/31/2017 12/31/2018 12/31/2019 12/31/2020 12/31/2021 12/31/2022 12/31/2023 12/31/2024 12/31/2025 12/31/2026 2 Income Statement Interest Revenue Dividend Revenue Other Gain or (Loss), if any Net Income 3 Statement of Comprehensive income Net Income Change in Carrying Value Value 2017 2017 2018 2018