Following are the non-strategic investment transactions of Corona Inc.: 2020 Jan. 1 Purchased for $79,112 an...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Following are the non-strategic investment transactions of Corona Inc.: 2020 Jan. 1 Purchased for $79,112 an 8.5%, $76,000 bond that matures in 10 years from Hanna Corporation when the market interest rate was 7.9 %. Interest is paid semiannually beginning June 30, 2020. June 30 Received interest on the Hanna bond. July 1 Paid $119,054 for a Trust Inc. bond with a par value of $121,000 and a five-years term. The bond pays interest quarterly beginning September 30, 2020, at the annual rate of 8.3%; the market interest rate on the date of purchase was 8.7%. Sept. 30 Received interest on the Trust bond. Dec. 31 Received interest the Hanna and Trust bonds. 31 The fair values of the bonds on this date equalled the fair values. Required: 1. For each of the bond investments, prepare an amortization schedule showing only 2020 and 2021. (Round your intermediate and final answers to the nearest whole dollar amount. Enter all the amounts as positive values.) Partial Amortization Schedule - Hanna Bond: Period Ending Jan. 1/20 June 30/20 Dec. 31/20 June 30/21 Dec. 31/21 Cash Interest Period Interest Premium Received Income Amort. Unamortized Premium Carrying Value Following are the non-strategic investment transactions of Corona Inc.: 2020 Jan. 1 Purchased for $79,112 an 8.5%, $76,000 bond that matures in 10 years from Hanna Corporation when the market interest rate was 7.9 %. Interest is paid semiannually beginning June 30, 2020. June 30 Received interest on the Hanna bond. July 1 Paid $119,054 for a Trust Inc. bond with a par value of $121,000 and a five-years term. The bond pays interest quarterly beginning September 30, 2020, at the annual rate of 8.3%; the market interest rate on the date of purchase was 8.7%. Sept. 30 Received interest on the Trust bond. Dec. 31 Received interest the Hanna and Trust bonds. 31 The fair values of the bonds on this date equalled the fair values. Required: 1. For each of the bond investments, prepare an amortization schedule showing only 2020 and 2021. (Round your intermediate and final answers to the nearest whole dollar amount. Enter all the amounts as positive values.) Partial Amortization Schedule - Hanna Bond: Period Ending Jan. 1/20 June 30/20 Dec. 31/20 June 30/21 Dec. 31/21 Cash Interest Period Interest Premium Received Income Amort. Unamortized Premium Carrying Value
Expert Answer:
Related Book For
Fundamental Accounting Principles Volume II
ISBN: 978-1259066511
14th Canadian Edition
Authors: Larson Kermit, Jensen Tilly
Posted Date:
Students also viewed these accounting questions
-
Following are the non-strategic investment transactions of Corona Inc.: Required 1. For each of the bond investments, prepare an amortization schedule showing only 2014 and 2015. 2. Prepare the...
-
Following are the non-strategic investment transactions of Corona Inc.: Required 1. For each of the bond investments, prepare an amortization schedule showing only 2020 and 2021. 2. Prepare the...
-
Fund B manages $100 million in the bond market, and the duration of its assets is 10 years. How will its asset value change if the 10-year bond yield increases 50 basis points from 3.5% to 4%?
-
Find the number density N/V for electrons such that (a) e -a = 1 and (b) e -a = 10 -6 .
-
In the month of November, Hasbrook Company Inc. wrote checks in the amount of $9,750. In December, checks in the amount of $11,762 were written. In November, $8,800 of these checks were presented to...
-
Give the notation for a voltaic cell that uses the reaction Ca(s) + Cl2(g) Ca2+(aq) + 2Cl(aq) What is the half-cell reaction for the anode? for the cathode? What is the standard cell potential of...
-
In Figure P8.63, a heavy potted plant hangs by an enveloping hanger made of heavy yarn. (a) If you pull slowly on the tassel at the bottom, where is the hanger most likely to break? Why? (b) If you...
-
A farmer in the Midwest has 1,000 acres of land on which she intends to plant corn, wheat, and soybeans. Each acre of corn costs $100 for preparation, requires 7 worker-days of labor, and yields a...
-
The unloaded length of the rope is s 0 and the distance between the attachment points on the same level is L . The rope is loaded from the center with a force G . The Young's modulus of the rope is E...
-
In this mini-case you will perform some procedures required as a part of audit planning. For ease your audit manager has already organized the workpapers and completed several of the required...
-
The market share of a company's main product increased 22 percentage points last year If the share changed from 65 to 87 percent of the total market what was the actual percent increase in the market...
-
Using MATLAB or OCTAVE do the following problems: a. Rewrite 2 In 2x - 31n+2ln z in a single logarithmic expression. b. Find all the solutions of the system (3x + 2y = 26 system of equations and...
-
igs in the Is it ethical for a business owner who controls the business to escape liability for the business's contracts and torts by hiding behind the veil of the business organization? Is it...
-
Company XYZ is a retail business that wants to assess its financial performance. They have provided you with their financial statements for the last two years. Your task is to conduct a ratio...
-
Internal Rate of Return. Quark Industries has three potential projects, all with an initial cost of $2,500,000. Given the discount rates and the future cash flow of each project, what are the IRRS of...
-
Childhood trauma can have profound and lasting effects on brain development and psychological well-being. Here's an overview of the long-term impacts and considerations for trauma-informed...
-
Problem 2.4 [10pts] A student of machine learning proposes the following new method for binary classification: Given Xest, find its mth nearest neighbor x, among positive examples. Also find its mth...
-
Perform the indicated operations. In designing a cam for a fire engine pump, the expression is used. Simplify this expression. (3) (3 4 32
-
Kangaroo Media Inc. has issued and outstanding a total of 40,000 shares of $7.20 preferred shares and 120,000 of common shares. The company began operations and issued both classes of shares on...
-
Debra and Glen are partners who agree that Debra will receive a $100,000 salary allowance after which remaining incomes or losses will be shared equally. If Glens capital account is credited $8,000...
-
The condensed comparative statements of Delta Uranium Corporation follow: Required Calculate trend percentages for the items of the statements using 2008 as the base year. Analysis Component: Analyze...
-
Interview someone working in a field youre interested in. Use the following questions to get started: How did you get started in this field? What do you like about your job? What do you dislike...
-
Using a cover letter you have written, review your online presence. What key words do you see in your social networking profiles? What job experience, education, and skills are highlighted? How can...
-
All-Weather Inc. invited applications for the position of sales representative. This person will be based in Nebraska and will be responsible for sales of All-Weathers vinyl windows in local markets,...
Study smarter with the SolutionInn App