On January 1, 2006, Jamona Corp. purchased 12% bonds, having amaturity value of $300,000, for $322,744.44. The bonds provide thebondholders with a 10% yield. They are dated January 1, 2006, andmature January 1, 2011, with interest receivable December 31 ofeach year. The company uses the effective-interest method toallocate unamortized discount or premium. The bonds are classifiedas available-for-sale. The fair value of the bonds at December 31of each year is as follows:
2006 – $320,500
2007 – $309,000
2008 – $308,000
2009 – $310,000
2010 – $300,000
Prepare theamortization table on the investment in bond.Prepare the entries on the investment in bond on1/1/06, the interest revenue and the amortization of the premium on12/31/07, and the adjustment of the investment position to fairvalue on 12/31/07.
“Looking for a Similar Assignment? Get Expert Help at an Amazing Discount!”
What Students Are Saying About Us
.......... Customer ID: 12*** | Rating: ⭐⭐⭐⭐⭐"Honestly, I was afraid to send my paper to you, but splendidwritings.com proved they are a trustworthy service. My essay was done in less than a day, and I received a brilliant piece. I didn’t even believe it was my essay at first 🙂 Great job, thank you!"
.......... Customer ID: 14***| Rating: ⭐⭐⭐⭐⭐
"The company has some nice prices and good content. I ordered a term paper here and got a very good one. I'll keep ordering from this website."
