On January 1, 2018, Nelson Company was started when its sole shareholder invested cash of $134,640 in exchange Nelson Company common stock. The company immediately used all of the cash and purchased two investments. (1) It paid $92,640 for $100,000 face value, 5%, 10 year Lewis Co. bonds dated January 1, 2018 that pay interest annually on December 31 of each year beginning on December 31, 2018. The annual yield rate on January 1, 2018 was 6%. (2) It also paid $42,000 for 1,000 shares ($42 per share) of Hilton Co. common stock, a publicly traded stock. The bond investment is considered an available for sale investment.

Nelsons balance sheet on January 1, 2018 immediately after the 2 purchases was:

Assets Equity

Investments $134,640 Common Stock $134,640

The following information applies to 2018

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

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

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

Hilton Co. stock $50 per share

Lewis Co bonds $96,524

The following information applies to 2019

4. In December of 2019, Hilton declared and paid a $1 per share cash dividend. As a result, Nelson received $1,000 cash.

5. On December 31, 2019 Nelson received the annual coupon payment from Lewis Co.

6. Market values on 12/31/19 were:

Hilton Co. stock $55 per share

Lewis Co bonds $100,000

Directions: Complete an amortization schedule for the bond investment on the spreadsheet. 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.

Cash Payment Interest Value Carrying Carrying Date Value 1/1/2018 12/31/2018 12/31/2019 12/31/2020 12/31/2021 12/31/2022 1231/2023 12/31/2024 1231/2025 12/31/2026 1231/2027 2 Income Statement Interest Revenue Dividend Revenue Other Gain or (Loss), if any Net Income 2018 2019 3 Statement of Comprehensive Income Net Income Other Comprehensive Income, if any Comprehensive Income 2018 2019 S0 Statement of Financial Position Cash Investments-Stock & Bonds 12/31/2018 12/31/2019 Common Stock Retained Earnings Accumulated Other Comprehensiven