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ired: - each of th. answers to al Amortizati od Ending

ired: - each of th. answers to al Amortizati od Ending

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Following are the non-strategic investment transactions of Corona Inc.: 2023 Jan. 1 Purchased for $90,159 an 8.0%, $85,000 bond that matures in 19 years from Hanna Corporation when the market interest rate was 7.4%. There was a $50 transaction fee included in the above-noted payment amount. Interest is paid semiannually beginning June 30, 2023. The acquisition was made with intention to hold to maturity. June 30 Received interest on the Hanna bond. July 1 Paid $125,694 for a Trust Inc. bond with a par value of $130,000 and a fourteen-years term. The bond pays interest quarterly beginning September 30, 2023, at the annual rate of 7.8%; the market interest rate on the date of purchase was 8.2%. There was a $50 transaction fee included in the above-noted payment amount. Sept. 30 Received interest on the Trust bond. Dec. 31 Received interest on 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 2023 and 2024. (Round your intermediate and final answers to the nearest whole dollar amount. Enter all the amounts as positive values.) Partial Amortization Schedule - Hanna Bond: Cash Interest Period Interest Received Income Period Ending Jan. 1/23 June 30/23 Dec. 31/23 June 30/24 D--2 Premium Amort. Unamortized Premium 5 Check my work H Carrying Value
Transcribed Image Text:Following are the non-strategic investment transactions of Corona Inc.: 2023 Jan. 1 Purchased for $90,159 an 8.0%, $85,000 bond that matures in 19 years from Hanna Corporation when the market interest rate was 7.4%. There was a $50 transaction fee included in the above-noted payment amount. Interest is paid semiannually beginning June 30, 2023. The acquisition was made with intention to hold to maturity. June 30 Received interest on the Hanna bond. July 1 Paid $125,694 for a Trust Inc. bond with a par value of $130,000 and a fourteen-years term. The bond pays interest quarterly beginning September 30, 2023, at the annual rate of 7.8%; the market interest rate on the date of purchase was 8.2%. There was a $50 transaction fee included in the above-noted payment amount. Sept. 30 Received interest on the Trust bond. Dec. 31 Received interest on 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 2023 and 2024. (Round your intermediate and final answers to the nearest whole dollar amount. Enter all the amounts as positive values.) Partial Amortization Schedule - Hanna Bond: Cash Interest Period Interest Received Income Period Ending Jan. 1/23 June 30/23 Dec. 31/23 June 30/24 D--2 Premium Amort. Unamortized Premium 5 Check my work H Carrying Value
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