Lee Corporation Essay

919 Words Jul 1st, 2012 4 Pages
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: 2006 – $320,500 2007 – $309,000 2008 – $308,000 2009 – $310,000 2010 – $300,000

(a) January 1, 2006

Available-for-Sale Securities 322,744.44 Cash 322,744.44

(b) December 31, 2006

Cash 36,000 Available-for-Sale Securities 3,725.56
…show more content…
| | | |
| | | |$(7,401.89) |

2. The following information is available from Jamona’s inventory records Units Unit Cost January 1, 2007 (beginning inventory) 600 $ 8.00 Purchases: January 5, 2007 1,200 9.00 January 25, 2007 1,300 10.00 February 16, 2007 800 11.00 March 26, 2007 600 12.00 A physical inventory on March 31, 2007, shows 1,600 units on hand. Select any one of the inventory methods (LIFO, FIFO, Average Cost, or others).

| Jamona Corp |
|COMPUTATION OF INVENTORY FOR PRODUCT |
|BAP UNDER FIFO INVENTORY METHOD |
|March 31, 2007 |
| |Units | |Unit Cost | |Total Cost |
|March 26,

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