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Exercise 17-5 Page 1 of 2 335.D301.Spring 2018.Seda / C 17 Exercise 17-5 On January 1, 2017, Larkspur Company acquires $290,000 of Spiderman Products, Inc., 9% bonds at a 2020. The investment rest is received on January 1 of each year, and the bonds mature on January 1, will provide Larkspur Company a 11% yield. The bonds are classified as held-to- maturity Prepare a 3-year schedule of interest revenue and bond discount amortization, applying the straight- line method. (Round answers to o decimal places, e.g. 2,500.) Schedule of Interest Revenue and Bond Discount Amortization Straight-line Method Bond Purchased to Yield Cash Interest Bond Discount Carrying Amount Revenue Amortization of Bonds Date Received 1/1/20 Prepare a 3-year schedule of interest revenue and bond discount amortization, applying the effective- interest method. (Round answers to O decimal places, e.g. 2,500.) Schedule of Interest Revenue and Bond Discount Amortization Effective-Interest Method Cash Bond Discount Carrying Amount Interest Revenue Date Received Amortization of Bonds 1/1/20 () Prepare the journal entry for the interest revenue and discount amortization under the straight- line method at December 31, 2018. (a emethd d) Prepare the journal entry for the interest revenue and discount amortization under the effective- interest method at December 31, 2018. indented when amount is entepl. 2,s00. Entry" for the account titles and enter 0 for the to 0 decimal places, e.g. 2,500. Credit account titles are automatically (Round answers smount is entered. Do not indent manually. If no entry is required, select "No amounts.) Debit Credit No. Account Titles and Explanation

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