P16-1. Debt Investments, Held to Maturity. Capitol Corporation acquired $6,735,000 par value, 6%, S-year bondson their date of issue, January 1 of the current year. The market rate at the time of...

The required task are in the photos that I attached. Thanks so much. There are 2 problems :



P16-1. Debt Investments, Held to Maturity. Capitol Corporation acquired $6,735,000 par value, 6%, S-year bonds on their date of issue, January 1 of the current year. The market rate at the time of issue was 10%, and interest is paid semiannually on June 30 and December 31. Capitol will use the effective interest rate method to account for this investment. Capitol intends to hold the investment until the bonds mature, and has the ability to do so. Required » . Determine the purchase price of the investment in bonds. . Prepare the journal entry to record the acquisition of the bond investment. . Prepare an amortization table for the investment using the effective interest rate method. . Prepare the journal entry to record the interest income for the first year. Prepare the journal entry to record the sale of the bonds at the end of the third year for $6,100,000. po ow E15-5. Treasury Stock Transactions, Disclosure. The following shareholders’ equity section was taken from the books of Aubry Corporation at the beginning of the current year: Common Stock, $10 par value, 1,000,000 shares $ 989,500 authorized, 98,950 shares issued and outstanding Additional Paid-in Capital in Excess of Par — Common 120,000 Additional Paid-in Capital from Treasury Stock 0 Transactions Retained Earnings 1,545,000 Required » a. Prepare the journal entries required to record each of the following events: Aubry acquired 15,000 shares of common stock to be held in the treasury at a cost of $16 per share. e Aubry sold 4,800 shares of treasury stock at $19 per share. o Aubry sold 7,200 shares of treasury stock at $8 per share. « Aubry reported a net loss of $367,540 for the year. » The company declared and paid a $2 per share cash dividend at year-end. b. Prepare the shareholders’ equity section at the end of the year.