On January 1, 2020, the Widner Company acquired 12% bonds with a face value of $350,000 and classified them as held-to-maturity. The bonds pay interest on June 30 and December 31, and mature on December 31, 2029.

Required:

a. Assume the bonds were acquired for $312,921 to yield 14%. Prepare an investment discount amortization schedule for the first year of the investment, using the effective interest method. Assume a 360-day year. Round all calculations to the nearest dollar.

Date		Cash (Debit)		Interest Income (Credit)		Investment in Debt Securities (Debit)		Carrying Value of Investment in Debt Securities
01/01/20								$fill in the blank f73be7f89058076_1
06/30/20		$fill in the blank f73be7f89058076_2		$fill in the blank f73be7f89058076_3		$fill in the blank f73be7f89058076_4		fill in the blank f73be7f89058076_5
12/31/20		fill in the blank f73be7f89058076_6		fill in the blank f73be7f89058076_7		fill in the blank f73be7f89058076_8		fill in the blank f73be7f89058076_9

b. Assume the bonds were acquired for $393,618 to yield 10%. Prepare an investment premium amortization schedule for the first year of the investment using the effective interest method. Assume a 360-day year. Round all calculations to the nearest dollar.

Date		Cash (Debit)		Interest Income (Credit)		Investment in Debt Securities (Credit)		Carrying Value of Investment in Debt Securities
01/01/20								$fill in the blank 38326dfa9074f8f_1
06/30/20		$fill in the blank 38326dfa9074f8f_2		$fill in the blank 38326dfa9074f8f_3		$fill in the blank 38326dfa9074f8f_4		fill in the blank 38326dfa9074f8f_5
12/31/20		fill in the blank 38326dfa9074f8f_6		fill in the blank 38326dfa9074f8f_7		fill in the blank 38326dfa9074f8f_8		fill in the blank 38326dfa9074f8f_9