Acc423 Intermediate Accounting: E17-3 On January 1, 2011, Roosevelt Company purchased 12% bonds

Acc423 Intermediate Accounting

E17-3 Entries for Held-to-Maturity Securities
On January 1, 2011, Roosevelt Company purchased 12% bonds, having a maturity value of $500,000, for $537,907.40. The bonds provide the bondholders with a 10% yield. They are dated January 1, 2011, and mature January 1, 2016, with interest receivable December 31 of each year. Roosevelt Company uses the effective-interest method to allocate unamortized discount or premium. The bonds are classified in the held-to-maturity category. (Round your answers to 2 decimal places, e.g. 25,100.25.)
(a) Prepare the journal entry at the date of the bond purchase.
(b) Prepare a bond amortization schedule.
(c ) Prepare the journal entry to record the interest received and the amortization for 2011.
(d) Prepare the journal entry to record the interest received and the amortization for 2012.
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