Please find the interest revenue HELP On January 1, 2025, Whispering Company acquires $300,000 of Spiderman Products, Inc., 9% bonds at a price of $271,666. Interest isreceived on January 1 of each year, and the bonds mature on January 1, 2028. The investment will provide Whispering Companya 13% yield. The bonds are classified as held-to-maturity.(a)Your answer is partially correct.Prepare a 3-year schedule of interest revenue and bond discount amortization, applying the straight-line method. (Round answersto O decimal places, e.g. 1,225.)DateCashReceived1/1/25Schedule of Interest Revenue and Bond Discount AmortizationStraight-line Method9% Bond Purchased to Yield 13%InterestRevenueBond DiscountAmortizationCarrying Amoof Bonds1/1/2627000$1/1/27270001/1/28eTextbook and MediaList of AccountsSave for Later2700027$9444.666666666666281110.6666€9444.666666666666290555.333339444.666666666666Attempts: 2 of 3 used Submit Answer

Step 1: Step 2:. (a) Prepare a 3-year schedule of interest revenue and bond discount amortization,…

Answered: On January 1, 2025, Whispering Company…

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter13: Investments And Long-term Receivables

Section: Chapter Questions

Problem 1RE

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On January 1, 2020, Phantom Company acquires $200,000 of Spiderman Products, Inc., 9% bonds at a price of $185,589. Interest is received on January 1 of each year, and the bonds mature on January 1, 2023. The investment will provide Phantom Company a 12% yield. The bonds are classified as held-to-maturity. Instructions a. Prepare a 3-year schedule of interest revenue and bond discount amortization, applying the straight-line method. b. Prepare a 3-year schedule of interest revenue and bond discount amortization, applying the effective-interest method. c. Prepare the journal entry for the interest revenue and discount amortization under the straight-line method at December 31, 2021. d. Prepare the journal entry for the interest revenue and discount amortization under the effective-interest method at December 31, 2021.
On January 1, 2020, Metlock Company acquires $ 110,000 of Spiderman Products, Inc., 9% bonds at a price of $ 99,611. Interest is received on January 1 of each year, and the bonds mature on January 1, 2023. The investment will provide Metlock Company a 13% yield. The bonds are classified as held-to-maturity. (a) Prepare a 3-year schedule of interest revenue and bond discount amortization, applying the straight-line method. (Round answers to 0 decimal places, e.g. 2,500.) Schedule of Interest Revenue and Bond Discount AmortizationStraight-line MethodBond Purchased to Yield Date CashReceived InterestRevenue Bond DiscountAmortization Carrying Amountof Bonds 1/1/20 $ enter a dollar amount $ enter a dollar amount $ enter a dollar amount $ enter a dollar amount 1/1/21 enter a dollar amount enter a dollar amount enter a dollar amount enter a dollar amount 1/1/22 enter a dollar amount enter a dollar amount…
On January 1, 2020, Metlock Company acquires $ 110,000 of Spiderman Products, Inc., 9% bonds at a price of $ 99,611. Interest is received on January 1 of each year, and the bonds mature on January 1, 2023. The investment will provide Metlock Company a 13% yield. The bonds are classified as held-to-maturity. Prepare a 3-year schedule of interest revenue and bond discount amortization, applying the effective-interest method. (Round answers to 0 decimal places, e.g. 2,500.) Schedule of Interest Revenue and Bond Discount AmortizationEffective-Interest MethodBond Purchased to Yield Date CashReceived InterestRevenue Bond DiscountAmortization Carrying Amountof Bonds 1/1/20 $ enter a dollar amount $ enter a dollar amount $ enter a dollar amount $ enter a dollar amount 1/1/21 enter a dollar amount enter a dollar amount enter a dollar amount enter a dollar amount 1/1/22 enter a dollar amount…
On January 1, 2020, Pronghorn Company acquires $270,000 of Spiderman Products, Inc., 9% bonds at a price of $244,500. Interest is received on January 1 of each year, and the bonds mature on January 1, 2023. The investment will provide Pronghorn Company a 13% yield. The bonds are classified as held-to-maturity. Prepare a 3-year schedule of interest revenue and bond discount amortization, applying the straight-line method. (Round answers to 0 decimal places, e.g. 2,500.) Schedule of Interest Revenue and Bond Discount AmortizationStraight-line MethodBond Purchased to Yield Date CashReceived InterestRevenue Bond DiscountAmortization Carrying Amountof Bonds
On January 1, 2020, Pronghorn Company acquires $270,000 of Spiderman Products, Inc., 9% bonds at a price of $244,500. Interest is received on January 1 of each year, and the bonds mature on January 1, 2023. The investment will provide Pronghorn Company a 13% yield. The bonds are classified as held-to-maturity. Prepare a 3-year schedule of interest revenue and bond discount amortization, applying the effective-interest method. (Round answers to 0 decimal places, e.g. 2,500.) Schedule of Interest Revenue and Bond Discount AmortizationEffective-Interest MethodBond Purchased to Yield Date CashReceived InterestRevenue Bond DiscountAmortization Carrying Amountof Bonds 1/1/20 1/1/21 1/1/22 1/1/23
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On January 1, 2020, Pronghorn Company acquires $270,000 of Spiderman Products, Inc., 9% bonds at a price of $244,500. Interest is received on January 1 of each year, and the bonds mature on January 1, 2023. The investment will provide Pronghorn Company a 13% yield. The bonds are classified as held-to-maturity. (c) Prepare the journal entry for the interest revenue and discount amortization under the straight-line method at December 31, 2021. (d) Prepare the journal entry for the interest revenue and discount amortization under the effective-interest method at December 31, 2021. (Round answers to 0 decimal places, e.g. 2,500. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) No. Account Titles and Explanation Debit Credit (c) (d)
On January 1, 2020, Ayayai Company acquires $300,000 of Spiderman Products, Inc., 9% bonds at a price of $271,666. Interest is received on January 1 of each year, and the bonds mature on January 1, 2023. The investment will provide Ayayai Company a 13% yield. The bonds are classified as held-to-maturity. Show Transcribed Text (c) Prepare the journal entry for the interest revenue and discount amortization under the straight-line method at December 31, 2021. (d) Prepare the journal entry for the interest revenue and discount amortization under the effective-interest method at December 31, 2021. (Round answers to O decimal places, eg. 2,500. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) No. Account Titles and Explanation (c) (d) Interest Revenue Interest Revenue Debit 27,000 27,000 Credit
McWherter Instruments sold $400 million of 8% bonds, dated January 1, on January 1, 2018. The bonds matureon December 31, 2037 (20 years). For bonds of similar risk and maturity, the market yield was 10%. Interest ispaid semiannually on June 30 and December 31. Blanton Technologies, Inc., purchased $400,000 of the bonds asa long-term investment.Required:1. Determine the price of the bonds issued on January 1, 2018.2. Prepare the journal entries to record (a) their issuance by McWherter and (b) Blanton’s investment on January1, 2018.3. Prepare the journal entries by (a) McWherter and (b) Blanton to record interest on June 30, 2018 (at the effective rate).4. Prepare the journal entries by (a) McWherter and (b) Blanton to record interest on December 31, 2018 (at theeffective rate).
On January 1, 2020, Roosevelt Company purchased 12% bonds, having a maturity value of $500,000, for $537,907.40. The bonds provide the bondholders with a 10% yield. They are dated January 1, 2020, and mature January 1, 2025, with interest received January 1 of each year. Roosevelt's business model is to hold these bonds to collect contractual cash flows. Instructions a. Prepare the journal entry at the date of the bond purchase. b. Prepare a bond amortization schedule. c. Prepare the journal entry to record the interest revenue and the amortization for 2020. d. Prepare the journal entry to record the interest revenue and the amortization for 2021.
On January 1, 2023, Liu Corporation paid $245,928 to acquire bonds of Singh Investment Corp with a par value of $244,000. The annual contract rate on the bonds is 8.0% and interest is paid semiannually on June 30 and December 31. The bonds mature after three years. The market rate of interest was 7.7%. Liu Corporation intends to hold the bonds until maturity. Required: 1. Prepare an amortization schedule for the investment showing only 2023.
McWherter Instruments sold $400 million of 8% bonds, dated January 1, on January 1, 2021. The bonds mature on December 31, 2040 (20 years). For bonds of similar risk and maturity, the market yield was 10%. Interest is paid semiannually on June 30 and December 31. Blanton Technologies, Inc., purchased $400,000 of the bonds as a long-term investment.Required:1. Determine the price of the bonds issued on January 1, 2021.2. Prepare the journal entries to record (a) their issuance by McWherter and (b) Blanton’s investment on January 1, 2021.3. Prepare the journal entries by (a) McWherter and (b) Blanton to record interest on June 30, 2021 (at the effective rate).4. Prepare the journal entries by (a) McWherter and (b) Blanton to record interest on December 31, 2021 (at the effective rate).

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