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photo shows question and where i am stuck. Mercer Corporation acquired $400,000 of Park Company's bonds on June 30, 2018, for $409,991.12. The bonds carry
photo shows question and where i am stuck. Mercer Corporation acquired $400,000 of Park Company's bonds on June 30, 2018, for $409,991.12. The bonds carry a 12% stated interest rate and pay interest semiannually on June 30 and December 31. The appropriate market interest rate is 11%, and the bonds are due June 30, 2021. Required: 1. Prepare an investment interest income and premium amortization schedule, using the: a. straight-line method b. effective interest method 2. Prepare journal entries to record the December 31, 2018, and December 31, 2020, interest receipts using both methods. MERCER CORPORATION Score: 56/100 Bond Investment Interest Income and Premium Amortization Schedule Straight-Line Method Interest Income Date Cash Debit Investment in Debt Securities Credit Carrying Value of Debt Securities Credit 06/30/18 $409,991.12 12/31/18 $8,325.93 408,325.93 $1,665.19 1,665.19 06/30/19 406,660.75 1,665.19 404,995.56 12/31/19 06/30/20 12/31/20 $24,000.00 24,000.00 24,000.00 24,000.00 24,000.00 24,000.00 1,665.19 403,330.37 1.665.19 401,665.19 06/30/21 0.00 0.00 400,000.00 MERCER CORPORATION Score: 60/100 Bond Investment Interest Income and Premium Amortization Schedule Effective Interest Method Interest Income Date Cash Debit Investment in Debt Securities Credit Credit Carrying Value of Debt Securities $409,991.12 06/30/18 12/31/18 $22,549.51 408,540.63 06/30/19 407,010.37 405,395.94 $24,000.00 24,000.00 24,000.00 24,000.00 24,000.00 24,000.00 12/31/19 06/30/20 12/31/20 06/30/21 22.469.73 22.385.57 22,296.78 22.203.10 22.104.27 403.692.71 401,895.81 0.08 400,000.08
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