1. On 9/11/A, Byron Co. issues $100,000 in 10-year 6% bonds to yield
8%; the bonds have a bond date of July 1, year A. Byron Co.
repurchases the bonds on 12/31/G, their FYE, and incurs $100 in
brokerage fees.

a. Calculate the net book value of the bonds on 12/31/G, immediately
prior to repurchase____________

Hint: For part 1a, you can calculate the nbv of the bonds perfectly on
7/1/G. Then "accrue-up" to get the nbv of the bonds on 12/31/G, just
as I showed in class. When you accrue-up, you take the 7/1 number, add
int exp and subtract int pay.

b. Calculate the market value of the bonds (using the "partial
interest" method) on 12/31/G, assuming the bonds are currently priced
in the market to yield 10% (don't forget to include accrued interest,
but not broker fees)____________

Hint: Recall that if we buy the bonds back in the market, we have to
pay the investors holding the bonds the accrued interest-- it's part
of our cost to repurchase. If you construct the repurchase entry
correctly, you can see that the total cash we pay is the sum of the
partial interest method bond value plus the accrued interest, minus
the broker fees; however, the broker fees are not part of the bonds'
fmv.

c. Provide the 12/31/G gain/loss (indicate which) Byron Co. would
report to repurchase and extinguish the bonds____________

2. On October 31, year A, CYA Co. purchased 1000 shares of Olive Co.
common stock at $37/share. They also purchased 600 shares of Drab Co.
preferred stock at $96.  On 12/31/A, CYA?s fiscal year-end, the
respective market prices for the stocks were $45 and $88. On June 1,
year B, CYA sold 240 shares of Olive at $56 each and 243 shares of
Drab at $90 each. At 12/31/B, the respective market prices of the
stocks were $50 and $110. Assuming the investments are correctly
accounted for as available-for-sale, provide the following
information.

a. 12/31/A total debits to Valuation Allowance account(s)____________

b. 6/1/B net realized gain/loss (indicate which)____________

c. ?Adjustment for (Gains)/Losses Reported in Net Income? shown in
Other Comprehensive Income on 12/31/B____________

d. 12/31/B balance, UHG/L ? AFS Securities reported as ?Accumulated
Other Comprehensive Income? in O.E. (also indicate whether balance is
UHG or UHL)____________

Part 2

Dillworth Co. issues $200k in 10-year 8% bonds to yield 10%.  The bond
date is 7/1/A, but the issue date is 11/1/A.

2. Provide an Excel worksheet file containing an amortization table
for the entire life of the above bond issue, from issuance to
maturity.  The worksheet must be prepared using Microsoft Excel for
Windows

3. The 1st Net Book Value for the bonds depicted in your table should
include the value you calculate using the ?partial interest? method
[hint] should equal the total cash we receive from issuing the bonds.

4. The last value depicted in the table should be the par amount.  

5. You may skip the column for amortization, but you must show columns
for date, payment, interest expense, and balance.  Also, you must
provide a total amount for the payment and interest expense columns;
place each total immediately below its respective column.

6. You must ignore the 12/31 EOY accruals; that is, just provide a row
for issuance and for each coupon payment.

7. Show, in a separate row immediately below the table, that

(total cash repaid) ? (total cash received) = total interest expense.