Business
AccountingIntermediate Accounting: Reporting And AnalysisInvestment Premium Amortization Schedule On January 1, 2019, Lynch Company acquired 13% bonds with a face value of $50,000. The bonds pay interest on June 30 and December 31 and mature on December 31, 2021. Lynch paid $51,229.35, a price that yields a 12% effective annual interest rate. Required: 1. Record the purchase of the bonds. 2. Prepare an investment interest income and premium amortization schedule using the effective interest method. 3. Record the receipts of interest on June 30, 2019, and December 31, 2021.
close solutoin list

Investment Premium Amortization Schedule On January 1, 2019, Lynch Company acquired 13% bonds with a face value of $50,000. The bonds pay interest on June 30 and December 31 and mature on December 31, 2021. Lynch paid $51,229.35, a price that yields a 12% effective annual interest rate. Required: 1. Record the purchase of the bonds. 2. Prepare an investment interest income and premium amortization schedule using the effective interest method. 3. Record the receipts of interest on June 30, 2019, and December 31, 2021.

BuyFind

Intermediate Accounting: Reporting...

3rd Edition
James M. Wahlen + 2 others
Publisher: Cengage Learning
ISBN: 9781337788281
BuyFind

Intermediate Accounting: Reporting...

3rd Edition
James M. Wahlen + 2 others
Publisher: Cengage Learning
ISBN: 9781337788281

Solutions

Chapter
Section
Problem 1GI
Problem 2GI
Problem 3GI
Problem 4GI
Problem 5GI
Problem 6GI
Problem 7GI
Problem 8GI
Problem 9GI
Problem 10GI
Problem 11GI
Problem 12GI
Problem 13GI
Problem 14GI
Problem 15GI
Problem 16GI
Problem 17GI
Problem 18GI
Problem 19GI
Problem 20GI
Problem 21GI
Problem 22GI
Problem 23GI
Problem 24GI
Problem 25GI
Problem 26GI
Problem 27GI
Problem 28GI
Problem 29GI
Problem 30GI
Problem 31GI
Problem 32GI
Problem 33GI
Problem 34GI
Problem 1MC
Problem 2MC
Problem 3MC
Problem 4MC
Problem 5MC
Problem 6MC
Problem 7MC
Problem 8MC
Problem 9MC
Problem 10MC
Problem 1RE
Problem 2RE
Problem 3RE
Problem 4RE
Problem 5RE
Problem 6RE
Problem 7RE
Problem 8RE
Problem 9RE
Problem 10RE
Problem 11RE
Problem 12RE
Problem 13RE
Problem 14RE
Problem 15RE
Problem 16RE
Problem 1E
Problem 2E
Problem 3E
Problem 4E
Problem 5E
Problem 6E
Problem 7E
Problem 8E
Problem 9E
Problem 10E
Problem 11E
Problem 12E
Problem 13E
Problem 14E
Problem 15E
Problem 16E
Problem 17E
Problem 18E
Problem 19E
Problem 20E
Problem 21E
Problem 22E
Problem 23E
Problem 24E
Problem 25E
Problem 26E
Problem 27E
Problem 1P
Problem 2P
Problem 3P
Problem 4P
Problem 5P
Problem 6P
Problem 7P
Problem 8P
Problem 9P
Problem 10P
Problem 11P
Problem 12P
Problem 13P
Problem 14P
Problem 15P
Problem 16P
Problem 17P
Problem 18P
Problem 19P
Problem 20P
Problem 21P
Problem 22P
Problem 23P
Problem 24P
Problem 25P
Problem 26P
Problem 1C
Problem 2C
Problem 3C
Problem 4C
Problem 5C
Problem 6C
Problem 7C
Problem 8C
Chapter 13, Problem 6E
Textbook Problem

Investment Premium Amortization Schedule On January 1, 2019, Lynch Company acquired 13% bonds with a face value of $50,000. The bonds pay interest on June 30 and December 31 and mature on December 31, 2021. Lynch paid $51,229.35, a price that yields a 12% effective annual interest rate.

Required:

  1. 1. Record the purchase of the bonds.
  2. 2. Prepare an investment interest income and premium amortization schedule using the effective interest method.
  3. 3. Record the receipts of interest on June 30, 2019, and December 31, 2021.

Expert Solution

Want to see the full answer?

Check out a sample textbook solution.See solution
Chapter 13,
Problem 5E
Chapter 13,
Problem 7E

Want to see this answer and more?

Experts are waiting 24/7 to provide step-by-step solutions in as fast as 30 minutes!*

See Solution

*Response times vary by subject and question complexity. Median response time is 34 minutes and may be longer for new subjects.

Chapter 13 Solutions

Intermediate Accounting: Reporting And Analysis
Show all chapter solutions
Ch. 13 - Why do companies purchase securities of other...Ch. 13 - Provide brief definitions for the following terms:...Ch. 13 - What are the three categories of investments in...Ch. 13 - How are each of the three categories of...Ch. 13 - What accounting is required for minority passive...Ch. 13 - Identify the accounting methods a company uses for...Ch. 13 - Briefly summarize the accounting for an investment...Ch. 13 - When are investments in debt securities held to...Ch. 13 - When are investments in debt securities held to...Ch. 13 - Briefly describe the two methods available to...
Ch. 13 - Briefly summarize the accounting for an investment...Ch. 13 - Briefly describe how to determine and record any...Ch. 13 - Briefly describe how to determine and record the...Ch. 13 - Briefly summarize the accounting for an investment...Ch. 13 - Briefly describe how to determine and record any...Ch. 13 - Briefly describe how to determine and record the...Ch. 13 - Briefly describe how to record the transfer of an...Ch. 13 - Describe how to recognize an impairment under the...Ch. 13 - Briefly summarize the accounting for an investment...Ch. 13 - Briefly describe how to determine and record any...Ch. 13 - Briefly describe how to determine and record the...Ch. 13 - Discuss the rationale behind the use of the equity...Ch. 13 - Briefly describe the accounting for an investment...Ch. 13 - Discuss the appropriate accounting treatment to...Ch. 13 - How does IFRS categorize minority passive...Ch. 13 - Describe the accounting treatment under IFRS of...Ch. 13 - Morgan Inc. and Parker Company are considering...Ch. 13 - Show the balance sheet disclosures of an...Ch. 13 - Describe the steps necessary for a company to...Ch. 13 - If a company receives a note in exchange for...Ch. 13 - Why is the cash surrender value of a life...Ch. 13 - What is a fund? Distinguish between a fund and an...Ch. 13 - What is a hedge? Describe the differences between...Ch. 13 - Explain the accounting differences between a fair...Ch. 13 - On January 1, 2019, Weaver Company purchased as...Ch. 13 - During 2021, Anthony Company purchased debt...Ch. 13 - On July 1, 2019, Aldrich Company purchased as an...Ch. 13 - In 2021, Cromwell Corporation purchased bonds of...Ch. 13 - When the market value of a companys portfolio of...Ch. 13 - A security in a portfolio of available-for-sale...Ch. 13 - On its December 31, 2018, balance sheet, Fay...Ch. 13 - On January 2, 2019, Portela Inc. bought 30% of the...Ch. 13 - Cash dividends declared out of current earnings...Ch. 13 - On January 1, 2019, Park Company accepted a...Ch. 13 - On January 1, 2019, Gatrong Corporation purchased...Ch. 13 - On January 1, 2019, Gatrong Corporation purchased...Ch. 13 - On July 1, 2019, Wolfpack Corporation purchased...Ch. 13 - Refer to the information in RE 13-3. Assume that...Ch. 13 - On April 30, 2019, Aggie Corporation purchased...Ch. 13 - Refer to the information in RE13-5. Assume that on...Ch. 13 - Refer to the information in RE13-5. Assume that on...Ch. 13 - Refer to the information in RE 13-5. Assume that...Ch. 13 - On February 1, 2019, Razorback Corporation decides...Ch. 13 - On September 30, Franz Corporation notices a...Ch. 13 - On January 1, 2019, Seminole Inc. purchased 300...Ch. 13 - Refer to the information in RE13-11. Assume that...Ch. 13 - Refer to the information in RE13-11. Assume that...Ch. 13 - On January 1, 2019, Tiger Company purchased 6,720...Ch. 13 - On January 1, Kilgore Inc. accepts a 20,000...Ch. 13 - At the beginning of the year, Commodore Company...Ch. 13 - Classification of Investments The following...Ch. 13 - Held-to-Maturity Securities and Amortization of a...Ch. 13 - Purchase of Bonds between Interest Dates On March...Ch. 13 - Purchase, Discount Amortization, and Sale of Bond...Ch. 13 - Investment Discount Amortization Schedule On...Ch. 13 - Investment Premium Amortization Schedule On...Ch. 13 - Purchase, Premium Amortization, and Sale of Bond...Ch. 13 - Trading Securities At the beginning of 2019, Able...Ch. 13 - Trading Securities At the end of 2018, Hodge...Ch. 13 - Trading Securities On December 31, 2019, Sumner...Ch. 13 - Available-for-Sale Securities On December 31,...Ch. 13 - Available-for-Sale Securities At the beginning of...Ch. 13 - Available-for-Sale Securities At the end of 2018,...Ch. 13 - Transfer between Categories On December 31, 2018,...Ch. 13 - Impairment On June 1, 2019, Hansen Company...Ch. 13 - Equity Securities Midwest Bank invests in equity...Ch. 13 - Equity Securities Southeast Bank invests in equity...Ch. 13 - Equity Method Miller Corporation acquired 30% of...Ch. 13 - Equity Method On January 1, 2019, Field Company...Ch. 13 - Equity Method On January 1, 2019, Jones Company...Ch. 13 - Notes Receivable On January 1, 2019, Crouser...Ch. 13 - Notes Receivable On January 1, 2019, Worthylake...Ch. 13 - Note Receivable in Installments On January 1,...Ch. 13 - Notes Receivable and Income On January 1, 2019,...Ch. 13 - Cash Surrender Value of Life Insurance Westford...Ch. 13 - Sinking Funds Entries The following information is...Ch. 13 - (Appendix 13.1) Derivatives Anglar Company has a 3...Ch. 13 - Premium Amortization on Bond Investment and...Ch. 13 - Bond Investment Discount Amortization Schedule...Ch. 13 - Discount Amortization on Bonds Purchased between...Ch. 13 - Bond Investment Premium Amortization Schedule...Ch. 13 - Discount Amortization on Bond Investment and...Ch. 13 - Trading Securities Akers Company invests its...Ch. 13 - Investment in Trading Securities The following...Ch. 13 - Investments in Trading Securities During 2019,...Ch. 13 - Available-for-Sale Securities Holly Company...Ch. 13 - Investment in Available-for-Sale Bonds The...Ch. 13 - Investments in Available-for-Sale Bonds During...Ch. 13 - Equity Securities The investment manager of 4th...Ch. 13 - Equity Securities 8th State Bank prepares interim...Ch. 13 - Investments in Equity Securities Noonan...Ch. 13 - Investments in Equity Securities Manson...Ch. 13 - Investments, Petty Cash, Rank Reconciliation...Ch. 13 - Comparison of Fair Value and Equity Methods On...Ch. 13 - Application of Equity Method On January 1, 2019,...Ch. 13 - Recording Investments under the Equity Method...Ch. 13 - Equity Method and Subsequent Sale On January 1,...Ch. 13 - Change to Equity Method On January 1, 2019, Lion...Ch. 13 - Notes Receivable On January 1, 2019, Somerville...Ch. 13 - Notes Receivable On January 1, 2019, Lisa Company...Ch. 13 - Comprehensive Notes Receivable On January 1, 2019,...Ch. 13 - Cash Surrender Value of Life Insurance On January...Ch. 13 - (Appendix 13.1) Derivatives Danburg. Company has a...Ch. 13 - Realized and Unrealized Losses An important part...Ch. 13 - Investments in Securities Cane Company has two...Ch. 13 - The most common method of accounting for...Ch. 13 - Victoria Company has investments in marketable...Ch. 13 - Available-for-Sale Securities The following are...Ch. 13 - For the past 5 years, Herbert has maintained an...Ch. 13 - You are an accountant for Davanzo Company. The...Ch. 13 - Researching GAAP Situation Middleton Company has...

Additional Business Textbook Solutions

Find more solutions based on key concepts
Show solutions
What is a production report? What purpose does this report serve?

Managerial Accounting: The Cornerstone of Business Decision-Making

Sales-related and purchase-related transactions using perpetual inventory system The following were selected fr...

Accounting

DATABASE GL SYSTEMREAL TIME The top-management team at Olympia, Inc., wishes to have real-time access to the ge...

Accounting Information Systems

The financial statements are interrelated. (A) What item of financial or operating data appears on both the inc...

Financial And Managerial Accounting

Reporting changes in equipment on statement of cash flows An analysis of the general ledger accounts indicates ...

Corporate Financial Accounting

What is the most important value reported on the statement of cash flows when evaluating the financial health o...

College Accounting, Chapters 1-27

On April 1, 2019, Maria Adams established Custom Realty. Maria completed the following transactions during the ...

Financial Accounting

Determining missing items from computations Data for the North, South, East, and West divisions of Free Bird Co...

Financial & Managerial Accounting

Search the Internet for an ERP failure that happened within the last five years. Summarize what went wrong. Doe...

Accounting Information Systems

(The Short-Run Firm Supply Curve) Use the following data to answer the questions below: Q VC MC AVC 1 $10 ____ ...

ECON MICRO

What are the two subfields into which economics is divided? Explain what each subfield studies.

Essentials of Economics (MindTap Course List)

For each of the goals listed in exercise 1, discuss what the appropriate commercial policy is likely to be (in ...

Economics:

Does a change in consumers tastes lead to a movement along the demand curve or to a shift in the demand curve? ...

Principles of Macroeconomics (MindTap Course List)

Soft Skills: What Employers Want. Communication Tedanotogy Sodat Media Team Web What soft skills do employers r...

Essentials of Business Communication (MindTap Course List)

How does the deductibility of interest and dividends by the paying corporation affect the choice of financing (...

Fundamentals of Financial Management, Concise Edition (MindTap Course List)

FUTURES What is the implied nominal interest rate on a 10-year U.S. T-notes (100,000) futures contract that set...

Fundamentals of Financial Management (MindTap Course List)

Happy Bank starts with 200 in bank capital. It then accepts 800 in deposits. It keeps 12.5 percent (1/8th) of d...

Brief Principles of Macroeconomics (MindTap Course List)

Is unemployment typically short-term or long-term? Explain.

Principles of Economics (MindTap Course List)

(Monopolistic Competition and Perfect Competition Compared) Illustrated below are the marginal cost and average...

ECON: MICRO4 (New, Engaging Titles from 4LTR Press)

How can the Federal Reserve and government use monetary policy and fiscal policy to reduce the effects of an ec...

Foundations of Business (MindTap Course List)

Table 1.7 shows data for eight cordless telephones (Consumer Reports, November 2012). The Overall Score, a meas...

STATISTICS F/BUSINESS+ECONOMICS-TEXT

What are the leakages from and injections into the circular flow? How are leakages and injections related in th...

ECON MACRO

Governments may intervene in a market economy in order to a. protect property rights. b. correct a market failu...

Principles of Microeconomics (MindTap Course List)

Discuss the profound impact of the Internet on marketing research

MKTG 12:STUDENT ED.-TEXT

Why do you think empowerment increases motivation? Do you see any ways in which a manger’s empowerment efforts ...

Management, Loose-Leaf Version

Identify the eight functions of marketing physical goods.

Contemporary Marketing

As of December 31, the end of the current year, the ledger of Harris Company contained the following account ba...

College Accounting (Book Only): A Career Approach

Entries for bad debt expense under the direct write-off and allowance methods The following selected transactio...

Financial & Managerial Accounting

Rustic Furniture Co. is owned and operated by Cam Pfeifer. The following is an excerpt from a conversation betw...

Financial Accounting

FOB shipping point means that transportation charges are paid by the seller.

College Accounting, Chapters 1-27 (New in Accounting from Heintz and Parry)

Calculate an employees total earnings if the company pays time-and-a-half when Jill Smith works 41 hours at 15 ...

College Accounting (Book Only): A Career Approach

Revenue and cash receipts journals; accounts receivable subsidiary and general ledgers Transactions related to ...

Accounting (Text Only)

Indicate whether each of the following represents a credit or debit on the U.S. current account. a. An American...

Exploring Economics

A sample of midterm grades for five students showed the following results: 72, 65, 82, 90, 76. Which of the fol...

Statistics for Business & Economics, Revised (MindTap Course List)

Go to the website of the Bureau of the Labor Statistics (http://www.bls.gov) and find data on the CPI. By how m...

Principles of Macroeconomics (MindTap Course List)

Describe continuous data protection (CDP), a mirror site, and electronic vaulting.

Pkg Acc Infor Systems MS VISIO CD

Explain in general terms what each of the following real options is and how it could change projects Nr Vs and ...

Fundamentals of Financial Management (MindTap Course List)

PRICE/EARNINGS RATIO A company has an EPS of 2.00, a book value per share of 20, and a market/book ratio of 1.2...

Fundamentals of Financial Management, Concise Edition (with Thomson ONE - Business School Edition, 1 term (6 months) Printed Access Card) (MindTap Course List)

What is the difference between a current liability and a long-term liability?

Corporate Financial Accounting

Eric Sherm began working as a part-time waiter on April 1, 2019, at Yardville Restaurant. The cash tips of 475 ...

PAYROLL ACCT.,2019 ED.(LL)-TEXT

The three business activities are financing, investing, and operating. Using Southwest Airlines, give an exampl...

Survey of Accounting (Accounting I)

Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand is 50,00. He...

Practical Management Science

Bountiful Manufacturing produces two types of bike frames (Frame X and Frame Y). Frame X passes through four pr...

Cornerstones of Cost Management (Cornerstones Series)

What types of information can a supplier provide that are useful during new-product development?

Purchasing and Supply Chain Management

On the basis of your answer to question 17, does MC change if TC changes?

Microeconomics

Consider the following: Two researchers, A and B, are trying to determine whether eating fatty foods leads to h...

Macroeconomics

Select the correct word in parentheses. Despite the dangers, employees change their computer passwords (infrequ...

Bcom

What factors can change demand? What factors can change quantity demanded?

Economics (MindTap Course List)

Explain this statement: The national debt is like taking money out of your left pocket and putting it into your...

Economics For Today

Contribution margin and contribution margin ratio For a recent year, McDonalds (MCD) company-owned restaurants ...

Managerial Accounting

Stockholder Payout Rations Super Duper Corporation had a string of successful years. Super Dupers executives wi...

Cornerstones of Financial Accounting

You are the curator of a museum. The museum is running short of funds, so you decide to increase revenue. Shoul...

Principles of Microeconomics

The European Union has virtually eliminated trade restrictions among its members, and most members now use a co...

Microeconomics: Private and Public Choice (MindTap Course List)

How have the size and functions of government changed during the last two centuries? Did the framers of the U.S...

Economics: Private and Public Choice (MindTap Course List)

Voters should simply ignore political candidates who play ball with special-interest groups and vote instead fo...

Macroeconomics: Private and Public Choice (MindTap Course List)

Do you think it is wise for a top executive to fire a manager who is bringing in big sales and profits for the ...

Understanding Management (MindTap Course List)

Ace Manufacturing produces 1,000 hammers per day. The total fixed cost for the plant is 5,000 per day, and the ...

Micro Economics For Today

Calculate the average and marginal tax rates in the following table, and indicate whether the tax is progressiv...

MACROECONOMICS FOR TODAY

bartleby
  • Contact Research (Essays)
  • High School Textbooks
  • Literature Guides
  • Essay Help
  • Mobile App
    • © 2021 bartleby. All Rights Reserved.