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ACC 545 Week 3 Individual Assignment Jamona Corp. Scenario
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Review the following information:
1. On January 1, 2006, Jamona Corp. purchased 12% bonds, having a
maturity value of $300,000, for $322,744.44. The bonds provide
the bondholders with a 10% yield. They are dated January 1, 2006,
and mature January 1, 2011, with interest receivable December 31
of each year. The company uses the effective-interest method to
allocate unamortized discount or premium. The bonds are
classified as available-for-sale. The fair value of the bonds at
December 31 of each year is as follows:
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2006 – $320,500
2007 – $309,000
2008 – $308,000
2009 – $310,000
2010 – $300,000
1. The following information is available from Jamona’s inventory
records
Units
Unit Cost