Week 3 — Individual Assignment: Jamona Corp. ScenarioWith the following information for Jamona Corp. please complete the following sections:InvestmentsInventoryProperty, Plant & EquipmentEquipment LeasesAll the information you need to compete this assignment is included.You must utilize the attached excel worksheet to complete.Do not significantly alter the formatting of the spreadsheetDo not delete tabs or columnsDo not change column headers or descriptionsDo not alter column width, formatting, shading or colorsI have provided enough lines for entries (If you need to add rows then something is incorrect)Use the tab called “Work” for calculations (optional – not graded)Submit the worksheet as your completed assignment.SECTION 1 – INVESTMENTSOn 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 receivableDecember 31of 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 atDecember 31of each year is as follows:YearFMV2006$320,5002007309,0002008308,0002009310,0002010300,000Deliverables:1(a) Complete the Bond Amortization and Unrealized Gain (Loss) Schedules. Beginning balance of amortization schedule is purchase price of bond.1(b) Prepare the Bond Investment entries for 2006.SECTION 2 – INVENTORYJamona Corp utilizes a Periodic Inventory System. and the following information is available from Jamona’s inventory records:DateDescriptionUnitsUnit Cost01/01/07Beginning Inventory600$8.0001/05/07Purchased1,2009.0001/25/07Purchased1,30010.0002/16/07Purchased80011.0003/26/07Purchased60012.00A physical inventory on March 31, 2007, shows 1,600 units on hand.Deliverables:2(a) Complete the LIFO inventory schedule.2(b) Complete the entries to close out beginning inventory and purchases, record ending inventory and cost of goods sold for the end of the period; using the LIFO cost method.I do not need to see the purchase entries.SECTION 3 – PROPERTY, PLANT & EQUIPMENTOnJuly 6, Jamona Corp. acquired the plant assets of Berry Company, which had discontinued operations. The appraised value of the property is:AssetValueLand$400,000Building1,200,000Machinery800,000Total2,400,000Jamona Corp. gave 12,500 shares of its $100 per value common stock in exchange. The stock had a market value of $168 per share on the date of the purchase of the property.OnDecember 20, the company paid cash for machinery, $260,000, subject to a 2% cash discount, and freight on machinery of $10,500.Deliverables:3(a) Calculate the amount of the assets recorded for the initial purchase of the plant assets from Berry Company.3(b) Prepare the fixed asset entries for 2007.SECTION 4 – EQUIPMENT LEASESOn January 1, 2007, Jamona Corp. signed a 5-year, noncancelable lease for a machine. The terms of the lease called for Jamona to make annual payments of $8,668 at the beginning of each year, starting January 1, 2007. The machine has an estimated useful life of 6 years and a $5,000 unguaranteed residual value. The machine reverts to the lessor at the end of the lease term. Jamona uses the straight-line method of depreciation for all of its plant assets. Jamona’s incremental borrowing rate is 10%, and the lessor’s implicit rate is unknown.Deliverables:4(a) Complete the schedules for Lease Amortization and Depreciation of equipment asset.4(b) Prepare the 2007 entries related to the lease.