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General Investment Co. (GIC) purchased bonds on January 1, 2021. GIC's accountant has projected the following amortization schedule from purchase until maturity: Date Cash Received Interest Revenue Amortization of Discount Amortized Cost     1/1/2021                     $ 194,758     6/30/2021 $ 7,000   $ 7,790     $ 790     195,548     12/31/2021   7,000     7,822       822     196,370     6/30/2022   7,000     7,855       855     197,225     12/31/2022   7,000     7,889       889     198,114     6/30/2023   7,000     7,925       925     199,039     12/31/2023   7,000     7,961       961     200,000                                          1. At a discount.   2. At par.   3. Cannot be determined from the given information.   4. At a premium. GIC purchased the bonds:

General Investment Co. (GIC) purchased bonds on January 1, 2021. GIC's accountant has projected the following amortization schedule from purchase until maturity: Date Cash Received Interest Revenue Amortization of Discount Amortized Cost     1/1/2021                     $ 194,758     6/30/2021 $ 7,000   $ 7,790     $ 790     195,548     12/31/2021   7,000     7,822       822     196,370     6/30/2022   7,000     7,855       855     197,225     12/31/2022   7,000     7,889       889     198,114     6/30/2023   7,000     7,925       925     199,039     12/31/2023   7,000     7,961       961     200,000                                          1. At a discount.   2. At par.   3. Cannot be determined from the given information.   4. At a premium. GIC purchased the bonds:

Intermediate Accounting: Reporting And Analysis
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter13: Investments And Long-term Receivables
Section: Chapter Questions
Problem 1MC
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  1. General Investment Co. (GIC) purchased bonds on January 1, 2021. GIC's accountant has projected the following amortization schedule from purchase until maturity:

    Date

    Cash Received

    Interest Revenue

    Amortization of Discount

    Amortized Cost

     

     

    1/1/2021

     

     

     

     

     

     

     

     

     

     

    $

    194,758

     

     

    6/30/2021

    $

    7,000

     

    $

    7,790

     

     

    $

    790

     

     

    195,548

     

     

    12/31/2021

     

    7,000

     

     

    7,822

     

     

     

    822

     

     

    196,370

     

     

    6/30/2022

     

    7,000

     

     

    7,855

     

     

     

    855

     

     

    197,225

     

     

    12/31/2022

     

    7,000

     

     

    7,889

     

     

     

    889

     

     

    198,114

     

     

    6/30/2023

     

    7,000

     

     

    7,925

     

     

     

    925

     

     

    199,039

     

     

    12/31/2023

     

    7,000

     

     

    7,961

     

     

     

    961

     

     

    200,000

     
                                       
     
      1.

    At a discount.
      2.

    At par.
      3.

    Cannot be determined from the given information.
      4.

    At a premium.
  2. GIC purchased the bonds:
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