On 1/1/2021 Jadara company paid $95,158 cash to invest in held to maturity securities the market rate of such investment was 10% and the stated rate was 5%. The mature date is 1/1/ 2050. 

Instruction: 

Use Excel 

1- Calculate the face value for the investment.  

2- Calculate the discount / premium if any.  

3- Prepare the amortization schedule.  

4- Prepare the journal entries for 2021. 

5- If the investment classified as available for sale security and the fire market value at the end of 2030 was $105,000 and the SFVA has a credit balance of $5,000. Prepare the journal entry.

Answer rating: 100% (QA)

1Calculation of the face value of the investment Price paid 95158 Statedcoupon rate 5 PmtFace valuex5 5x or 005 x Market interest rate r 10 Noof yrs n ... View the full answer