Vilander Carecenters Inc. provides financing and capital to the healthcare industry, with a particular focus on nursing homes for the elderly. the following selected transactions relate to bonds acquired as an invenstment by Vilander, whose fiscal year ends on December 31.

Jan. 1Purchased at face value $2,000,000 of Javier Nursing Centers, Inc., 10-year, 8% bonds dated January 1, 2018, directly from Javier.
Dec. 31Accrual of interest at year-end on the Javier bonds

(Assume that all intervening transactions and adjustments have been properly recorded and hat the number of bonds owned has not charged from December 31, 2018, to December 31, 2020.)

Jan. 1Received the annual interest on the Javier bonds
Jan. 1Sold $1,000,000 Javier bonds at 106.
Dec. 31Accrual of interest at year-end on the Javier bonds


  1. Journalize the listed transactions for the years 2018 and 2021
  2. Assume that the fair value of the bonds at December 31, 2018, was $2,200,000. These bonds are classified as available for sale securities. Prepare the adjusting entry to record these bonds at fair value.
  3. Based on your analysis in part(b), show the balance sheet presentation of the bonds and interest receivable at December 31, 2018. Assume the investments are considered long-term. Indicate where any unrealized gain or loss is reported in the financial statements

In January 2019, the management of Kinzie Company concludes that it has sufficient cash to permit some short-term investments in debt and stock securities. During the year, the following transactions occurred.

On December 31, 2019, Turnball Associates owned the following securities held as a long-term investment. The securities are not held for influence or control of the investee.

Heldebrecht Design acquired 20% of the outstanding common stock of Quayle Company on January 1, 2019, by paying $800,000 for the 30,000 shares.

The following securities are in Frederick Company's portfolio of long-term available-for-sale securities at December 31, 2019.

The following data, presented in alphabetical order, are taken from the records of Nieto Corporation.

Jenek Corporation had the following transactions pertaining to debt investments, 1. Purchased 50 9%, $1,000 Leeds Co.bonds for $50,000 cash. Interest is payable annually on January 1, 2019.

Flynn Company purchased 70 Rinehart Company 6%, 10- year, $1,000 bonds on January 1, 2019, for $70,000. The bonds pay interest annually on January 1. On January 1, 2020, after receipt of interest, Flynn Company sold 40 of the bonds for $38,500.

Hulse Company had the following transactions pertaining to stock investments.

Nosker Inc. had the following transactions pertaining to investments in common stock.

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