Financial Accounting II Bond Assignment Please prepare your answers to the follo

Question

Financial Accounting II Bond Assignment Please prepare your answers to the following bond questions. We will review these problems on Monday The Barton Corporation purchased $750,000 of 3%, 5-year bonds at 98 on January 1, 2016. Interest is to be paid semiannually on January 1 and July 1·This is a held-to- maturity investment. This company uses the straight-line method to amortize any premiums or discounts. What was the purchase price of these bonds? A. $735,000 B. $750,000 C. $772,500 D. $727,500 2. Refer to Question 1. What is the amount of Interest Revenue recorded on July 1,2016? A. $22,500 B. $11,250 C. $9,720 D. $12,750 3. Refer to Question 1. What is the carrying amount of the bond on July 1, 2016? A. $750,000 B. $748,500 C. $736,500 D. $735,000 On January 1, 2017, Exclusive Company purchases si 0,000 of 6% bonds in Smiley Company at a price of 95. Exclusive Company intends to hold the bonds until the maturity date on January 1, 2027. The interest dates are January 1 and July 1. Exclusive Company amortizes any discount or premium using the straight-line method. The fiscal year end of Exclusive Company is December 31. 4. Required: Prepare the journal entries on: 1. January 1, 2017 2. July 1, 201:7 3. December 31, 2017 4. January 1, 2018 Explanations are not required.

Explanation / Answer

Please raise another question for remaining part as per chegg policy.

Question Answer Explanation 1 A =750000*98/100=$ 735,000 2 D =750000*3%*1/2+15000/10=$12,750 3 C =735000+15000/10=$736,500

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