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 Amortization Effective-Interest Method Bond Purchased to Yield
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 Amortization Effective-Interest Method Bond Purchased to Yield
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
Chapter14: Financing Liabilities: Bonds And Long-term Notes Payable
Section: Chapter Questions
Problem 5P: Bats Corporation issued 800,000 of 12% face value bonds for 851,705.70. The bonds were dated and...
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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 Amortization
Effective-Interest Method Bond Purchased to Yield |
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|---|---|---|---|---|---|---|---|---|
|
Date |
Cash
Received |
Interest
Revenue |
Bond Discount
Amortization |
Carrying Amount
of Bonds |
||||
| 1/1/20 |
$ enter a dollar amount
|
$ enter a dollar amount
|
$ enter a dollar amount
|
$ enter a dollar amount
|
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| 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
|
enter a dollar amount
|
enter a dollar amount
|
||||
| 1/1/23 |
enter a dollar amount
|
enter a dollar amount
|
enter a dollar amount
|
enter a dollar amount
|
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