On January 1, 2017, Wildhorse Company purchased 12% bonds having a maturity value of $310,000, for...

On January 1, 2017, Wildhorse Company purchased 12% bonds having a maturity value of $310,000, for $333,502.59. The bonds provide the bondholders with a 10% yield. They are dated January 1, 2017, and mature January 1, 2022, with interest receivable January 1 of each year. Wildhorse Company uses the effective-interest method to allocate unamortized discount or premium. The bonds are classified in the held-to-maturity category.

Prepare the journal entry at the date of the bond purchase.

Prepare a bond amortization schedule.

Prepare the journal entry to record the interest revenue and the amortization at December 31, 2017.

Prepare the journal entry to record the interest revenue and the amortization at December 31, 2018.

Expert Solution

ekkarill92 answered 1 year ago

On January 1, 2020, Indigo Company purchased 12% bonds having a maturity value of $310,000, for...

On January 1, 2020, Indigo Company purchased 12% bonds having a maturity value of $310,000, for $333,502.59. The bonds provide the bondholders with a 10% yield. They are dated January 1, 2020, and mature January 1, 2025, with interest received on January 1 of each year. Indigo Company uses the effective-interest method to allocate unamortized discount or premium. The bonds are classified in the held-to-maturity category. Prepare the journal entry at the date of the bond purchase. (Enter answers to...

On January 1, 2017, Blue Company purchased 12% bonds, having a maturity value of $276,000, for...

On January 1, 2017, Blue Company purchased 12% bonds, having a maturity value of $276,000, for $296,924.88. The bonds provide the bondholders with a 10% yield. They are dated January 1, 2017, and mature January 1, 2022, with interest received on January 1 of each year. Blue Company uses the effective-interest method to allocate unamortized discount or premium. The bonds are classified as available-for-sale category. The fair value of the bonds at December 31 of each year-end is as follows....

On January 1, 2017, Grouper Company purchased 12% bonds, having a maturity value of $316000 for...

On January 1, 2017, Grouper Company purchased 12% bonds, having a maturity value of $316000 for $339957.48. The bonds provide the bondholders with a 10% yield. They are dated January 1, 2017 and mature January 1, 2022, with interest received on January 1 of each year. Grouper Company uses the effective interest method to allocate unamortized discount or premium. The bonds are classified as available for sale category. The fair value of the bonds at Decemeber 31 of each year...

On January 1, 2017, Culver Company purchased 12% bonds, having a maturity value of $275,000, for...

On January 1, 2017, Culver Company purchased 12% bonds, having a maturity value of $275,000, for $295,849.07. The bonds provide the bondholders with a 10% yield. They are dated January 1, 2017, and mature January 1, 2022, with interest received on January 1 of each year. Culver Company uses the effective-interest method to allocate unamortized discount or premium. The bonds are classified as available-for-sale category. The fair value of the bonds at December 31 of each year-end is as follows....

On January 1, 2017, Buffalo Company purchased 12% bonds, having a maturity value of $ 304,000, for...

On January 1, 2017, Buffalo Company purchased 12% bonds, having a maturity value of $ 304,000, for $ 327,047.70. The bonds provide the bondholders with a 10% yield. They are dated January 1, 2017, and mature January 1, 2022, with interest received on January 1 of each year. Buffalo Company uses the effective-interest method to allocate unamortized discount or premium. The bonds are classified as available-for-sale category. The fair value of the bonds at December 31 of each year-end is as...

On January 1, 2017, Pharoah Company purchased 12% bonds, having a maturity value of $320,000, for...

On January 1, 2017, Pharoah Company purchased 12% bonds, having a maturity value of $320,000, for $344,260.74. The bonds provide the bondholders with a 10% yield. They are dated January 1, 2017, and mature January 1, 2022, with interest received on January 1 of each year. Pharoah Company uses the effective-interest method to allocate unamortized discount or premium. The bonds are classified as available-for-sale category. The fair value of the bonds at December 31 of each year-end is as follows....

On January 1, 2017, Indigo Company purchased 12% bonds, having a maturity value of $320,000, for...

On January 1, 2017, Indigo Company purchased 12% bonds, having a maturity value of $320,000, for $344,260.74. The bonds provide the bondholders with a 10% yield. They are dated January 1, 2017, and mature January 1, 2022, with interest received on January 1 of each year. Indigo Company uses the effective-interest method to allocate unamortized discount or premium. The bonds are classified as available-for-sale category. The fair value of the bonds at December 31 of each year-end is as follows....

On January 1, 2017, Pronghorn Company purchased 10% bonds having a maturity value of $380,000, for...

On January 1, 2017, Pronghorn Company purchased 10% bonds having a maturity value of $380,000, for $410,343.38. The bonds provide the bondholders with a 8% yield. They are dated January 1, 2017, and mature January 1, 2022, with interest receivable January 1 of each year. Pronghorn Company uses the effective-interest method to allocate unamortized discount or premium. The bonds are classified in the held-to-maturity category. Prepare the journal entry at the date of the bond purchase. Prepare a bond amortization...

On January 1, 2017, Grouper Company purchased 11% bonds, having a maturity value of $313,000, for...

On January 1, 2017, Grouper Company purchased 11% bonds, having a maturity value of $313,000, for $337,348.74. The bonds provide the bondholders with a 9% yield. They are dated January 1, 2017, and mature January 1, 2022, with interest received on January 1 of each year. Grouper Company uses the effective-interest method to allocate unamortized discount or premium. The bonds are classified as available-for-sale category. The fair value of the bonds at December 31 of each year-end is as follows....

On January 1, 2017, Monty Company purchased 9% bonds having a maturity value of $290,000, for...

On January 1, 2017, Monty Company purchased 9% bonds having a maturity value of $290,000, for $313,782.32. The bonds provide the bondholders with a 7% yield. They are dated January 1, 2017, and mature January 1, 2022, with interest receivable January 1 of each year. Monty Company uses the effective-interest method to allocate unamortized discount or premium. The bonds are classified in the held-to-maturity category. Prepare the journal entry at the date of the bond purchase. Prepare a bond amortization...

Question