Intermediate Accounting Chapter 12 Homework for Credit Problem #1: Debt securities held to maturity Par Value of Bonds Purchased Stated Interest Rate Effective Interest Rate Purchased On Interest Paid Interest for 1/1 - 6/30 paid on Interest for 7/1 - 12/31 paid on Years to maturity $ 800,000 5.00% 2.50% 4.00% 2.00% 17120X2 Semi-Annual July 1st of current year January 1st of next year 10 CONSIDER THESE ADDITIONAL FACTS: Bonds Called on: 10/1/X6 Call%: 103% 9.) Consid the journal entry required to record the call of the bond. What impact does the journal entry have on net income? 10.) Consider the journal entry required to record the call of the bond. What impact does the journal entry have on stockholder's equity