Review the Jamona Corporation information.
Prepare journal entries that relate to the balance sheet items above with appropriate backup lead schedules for investments, inventory, fixed assets, and capital leases.Prepareappropriate note disclosures.
On January 1, 2006, Jamona Corp. purchased 12% bonds, having a maturity value of $300,000, for $322,744.44 with 10% yield for bondholders which are dated January 1, 2006 and will mature January 1, 2011, the interest will be received December 31 each year. The method used to allocate unamortized discount or premiums is the effective-interest method. The bonds will be classified as available-for-sale with a fair value of the bonds on December 3 of each year being as follows:
2006 - $320,500
2007 - $309,000
2008 - $308,000
2009 - $310,000
2010 - $300,000