Question

Problem 16-01A a-c (Part Level Submission) (Video) Ivanhoe 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 investment by Ivanhoe, whose fiscal year ends on December 31 2020 Jan. 1 Purchased at face value $1,898,0000 of Javier Nursing Centers, Inc., 10-year, 10% bonds dated January 1, 2017, directly from Javier Accrual of interest at year-end on the Javier bonds. Dec. 31 (Assume that all intervening transactions and adjustments have been properly recorded and that the number of bonds owned has not changed from December 31, 2020, to December 31, 2022.) 2023 Jan. 1 Received the annual interest on the Javier bonds. Jan. 1 Sold $949,000 Javier bonds at 103. Accrual of interest at year-end on the Javier bonds. Dec. 31 (a) Your answer is correct. Journalize the listed transactions for the years 2020 and 2023. (Record entries in the order displayed in the problem statement. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter 0 for the amounts. Round answers to 0 decimal places, e.g. 5,275.) Credit Date Account Titles and Explanation Debit 1898000 Jan. 1, 2020 Debt Investments 1898000 Cash Dec. 31, 2020 Interest Receivable 189800 Interest Revenue 189800 Your answer is partially correct. Try again. Based on your analysis in part (b), show the balance sheet presentati of the bonds and interest receivable at December 31, 2020. Assume t investments are considered long-term. Indicate where any unrealized gain or loss is reported in the financial statements. (Enter account name only and do not provide descriptive information.) Ivanhoe Carecenters Inc. Balance Sheet (Partial) December 31, 2020 Current Assets Interest Receivable 189800 Investments 2087800 Debt Investments, at fair value Total Assets 2277600 Current Assets Click if you would like to Show Work for this question: Open Show Work By accessing this Question Assistance, you will learn while you earn points based on the Point Potential Policy set by your instructor.

Answer 1

Journal Entry Particulars Debit Credit Date Investment in Bonds- 01-Jan-20 1898000 Javier Cash 1898000 Accrued 31-Dec-20 Interest 189800 (1898000 10 %) Interest Revenue 189800 Cash 01-Jan-21 189800 Accrued Interest 189800 Accrued 31-Dec-21 Interest 189800 Interest Revenue 189800 Cash 01-Jan-22 189800 Accrued Interest 189800 Accrued 31-Dec-22 Interest 189800 (1898000*10%) 189800 Interest Revenue Cash 189800 01-Jan-23 Accrued Interest 189800 Cash 01-Jan-23 977470 (949000*103 %) Investment in Bonds 949000 Javier Gain on Sale of 28470 Accrued 31-Dec-23 Interest (949000*10 % ) 94900 Interest Revenue 94900

Available for sale Bond 1898000 PART B Adjusting entry unrealised gain00CI 1898000 PART C Balance sheet Current Asset Interest Receivable |Investments 189800 Debt investments XXXXXXX at fair value Retained Earnings 2087800 xxxxx-amount couldt trace since part b of question is missing kindly fill the xxx with the the amount mentioned in POINt B then you will get the answer