With the following information for Jamona Corp. please complete the following sections: 1. Investments 2. Inventory 3. Property, Plant & Equipment 4. Equipment Leases All the information you need to compete this assignment is included. YOU MUST COMPLETE AND SUBMIT THE ATTACHED EXCEL WORKSHEET AS YOUR ASSIGNMENT! ** Anything else will not be accepted for this assignment ** Do not significantly alter the formatting of the spreadsheet Do not delete tabs or columns Do not change column headers or descriptions Do not alter column width, formatting, shading or colors I have provided enough lines for entries (If you need to add rows then something is incorrect) Use the tab called "Work" for calculations (optional - not graded) Submit the worksheet as your completed assignment. SECTION 1 - INVESTMENTS On January 1, 2006, Jamona Corp. purchased 12% bonds, having a maturity value of $300,000, for $322,744.44. The bonds provide the bondholders with a 10% yield. They are dated January 1, 2006, and mature January 1, 2011, with interest receivable December 31 of each year. The company uses the effective-interest method to allocate unamortized discount or premium. The bonds are classified as available-for-sale. The fair value of the bonds at December 31 of each year is as follows: Year FMV 2006 $320,500 2007 309,000 2008 308,000 2009 310,000 2010 300,000 Deliverables: 1(a) Complete the Bond Amortization and Unrealized Gain (Loss) Schedules. Beginning balance of amortization schedule is purchase price of bond. 1(b) Prepare the Bond Investment entries for 2006. SECTION 2 - INVENTORY Jamona Corp utilizes a Periodic Inventory System. and the following information is available from Jamona's inventory records: Date Description Units Unit Cost 01/01/07 Beginning Inventory 600 $8.00 01/05/07 Purchased 1,200 9.00 01/25/07 Purchased 1,300 10.00 02/16/07 Purchased 800 11.00 03/26/07 Purchased 600 12.00 A physical inventory on March 31, 2007, shows 1,600 units on hand. Deliverables: 2(a) Complete the LIFO inventory schedule. 2(b) Complete the entries to close out beginning inventory and purchases, record ending inventory and cost of goods sold for the end of the period; using the LIFO cost method. I do not need to see the purchase entries. SECTION 3 - PROPERTY, PLANT & EQUIPMENT On July 6, Jamona Corp. acquired the plant assets of Berry Company, which had discontinued operations. The appraised value of the property is: Asset Value Land $400,000 Building 1,200,000 Machinery 800,000 Total 2,400,000 Jamona Corp. gave 12,500 shares of its $100 per value common stock in exchange. The stock had a market value of $168 per share on the date of the purchase of the property. On December 20, the company paid cash for machinery, $260,000, subject to a 2% cash discount, and freight on machinery of $10,500. Deliverables: 3(a) Calculate the amount of the assets recorded for the initial purchase of the plant assets from Berry Company. 3(b) Prepare the fixed asset entries for 2007. SECTION 4 - EQUIPMENT LEASES On January 1, 2007, Jamona Corp. signed a 5-year, noncancelable lease for a machine. The terms of the lease called for Jamona to make annual payments of $8,668 at the beginning of each year, starting January 1, 2007. The machine has an estimated useful life of 6 years and a $5,000 unguaranteed residual value. The machine reverts to the lessor at the end of the lease term. Jamona uses the straight-line method of depreciation for all of its plant assets. Jamona's incremental borrowing rate is 10%, and the lessor's implicit rate is unknown. Deliverables: 4(a) Complete the schedules for Lease Amortization and Depreciation of equipment asset. 4(b) Prepare the 2007 entries related to the lease