Question: Problem 17-1 Presented below is an amortization schedule related to Pearl Company's 5-year, $190,000 bond with a 6% interest rate and a 4% yield, purchased

Problem 17-1 Presented below is an amortization schedule related to Pearl

Problem 17-1 Presented below is an amortization schedule related to Pearl Company's 5-year, $190,000 bond with a 6% interest rate and a 4% yield, purchased on December 31, 2015, for $206,918. Cash Received Interest Revenue Bond Premium Amortization Carrying Amount of Bonds Date 12/31/15 12/31/16 12/31/17 12/31/18 12/31/19 12/31/20 $11,400 11,400 11,400 11,400 11,400 $8,277 8,152 8,022 7,887 7,744 $3,123 3,248 3,378 3,513 3,656 $206,918 203,795 200,547 197,169 193,656 190,000 The following schedule presents a comparison of the amortized cost and fair value of the bonds at year-end: Amortized cost Fair value 12/31/16 $203,795 $203,200 12/31/17 $200,547 $202,500 12/31/18 $197,169 $199,000 12/31/19 $193,656 $194,900 12/31/20 $190,000 $190,000 (a) (b) (c) (d) (e) (1) Prepare the journal entry to record the purchase of these bonds on December 31, 2015, assuming the bonds are classified as held-to-maturity securities. Prepare the journal entry related to the held-to-maturity bonds for 2016. Prepare the journal entry related to the held-to-maturity bonds for 2018. Prepare the journal entry to record the purchase of these bonds, assuming they are classified as available-for-sale. Prepare the journal entries related to the available-for-sale bonds for 2016. Prepare the journal entries related to the available for sale bonds for 2018

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!

Problem 17-1 Presented below is an amortization schedule related to Sarasota Company's 5-year, $170,000 bond with a 6% interest rate and a 4% yield, purchased on December 31, 2015, for $185,137. Cash...

Problem 17-1 Presented below is an amortization schedule related to Grouper Company's 5-year, $170,000 bond with a 6% interest rate and a 4% yield, purchased on December 31, 2015, for $185,137. Bond...

Accounting Intermediate 2 Problem 17-1 Presented below is an amortization schedule related to Bonita Company's 5-year, $110,000 bond with a 6% interest rate and a 4% yield, purchased on December 31,...

Intermediate 2. Mostly on the last one. Just so you know the answer is not 1265. Problem 17-1 Presented below is an amortization schedule related to Bonita Company's 5-year, $110,000 bond with a 6%...

Problem 17-1 Presented below is an amortization schedule related to Teal Companys 5-year, $150,000 bond with a 6% interest rate and a 4% yield, purchased on December 31, 2015, for $163,356. Date Cash...

Problem 17-1 Presented below is an amortization schedule related to Sheridan Company's 5-year, $160,000 bond with a 8% interest rate and a 6% yield, purchased on December 31, 2015, for $173,480 Bond...

Problem 17-1 Presented below is an amortization schedule related to Vaughn Company's 5-year, $140,000 bond with a 7% interest rate and a 5% yield, purchased on December 31, 2015, for $152,123...

Problem 17-1 Presented below is an amortization schedule related to Kingbird Company's 5-year, $110,000 bond with a 8% interest rate and a 5 % yield , purchased on December 31, 2015, for $124,287...

Problem 17-1 Presented below is an amortization schedule related to Splish Company's 5-year, s 140,000 bond with a 7% interest rate and a 5% yield, purchased on December 31, 2015, for $152,123 Cash...

Problem 17-1 Presented below is an amortization schedule related to Marigold Company's 5-year, $120,000 bond with a 796 interest rate and a 5% yield, purchased on December 31, 2015, for $130,392 Cash...

In Intrinsic Ste GaAs e and hele mobilities are. 0.85 & 0.04 met / Usec repectively. & corresponding. effective masses are 0.068 m. &0.5m. where m. is the rest mass of the e if band gap of this...

Under IAS 41 Agriculture, which among the following is not included in cost to sell of an agricultural produce? Levies by regulatory authorities Costs of getting the assets to market Transfer taxes...

1 . Liam needs to calculate the monthly payment for a loan to purchase the Charles Street property. Calculate the monthly payment as follows: a . Divide the Rate by 1 2 to use the monthly interest...

In groups of two or three, select two job advertisements from a national newspaper and produce a short comparative report on how the advertisements meet Armstrongs three criteria.

Describe the major labormanagement interactions: organizing, contract negotiations, and contract administration. page 594

Identify the four levels of global participation and the HRM issues faced within each level. page 642