Problem 2P Chapter CH13 Problem 2P Bond Investment Discount Amortization Schedule Tudor Company acquired $500,000 of Carr Corporation bonds for $487,706.69 on January 1, 2016. The bonds carry an 11% stated interest rate, pay interest semiannually on January 1 and July 1, were issued to yield 12%, and are due January 1, 2019. Required: 1. Prepare an investment interest income and discount amortization schedule using the: a. straight-line method b. effective interest method 2. Prepare the July 1, 2018, journal entries to record the interest income under both methods. Step-by-step solution 100% (3 ratings) for this solution Step 1 of 4 Investment The process of sacrificing today's money for a future return is generally known as investment. P13-2 Name: a and th. Complete the bond interest expense and premium amortization schedules below by filling in the green-shaded An asterisk will appear before an incorrect amount entered in the answer calls TUDOR COMPANY Bond Investment interest Income and Discount Amortization Schedule Straight-Line Method Investment in Carrying Value Cash Debt Securities Interest Income of Debt Date Debit Debit Credit Securities 01/01/19 07/01/19 01/01/20 07/01/20 01/09/21 07/01/21 01/01/22 TUDOR COMPANY Bond Investment Interest Income and Discount Amortization Schedule Effective Interest Method Investment in Carrying Value Cash Interest Income Debt Securities of Debt Date Debit Credit Debit Securities 0110119 07/01/19 01/01/20 07/01/20 01/01/21 07/01/21 01/01/22 2. To enter the journal entries, enter the appropriate account titles in the green-shaded calls in calumn E and the appropriate amounts in the green-shaded cells in columnstand K An asterink (1) will appear before an incorrect amount entered in the answer cells. Accounties will not be graded Straight Line Method 2021 July 01 I Effective Interest Method 2021 July 01