Sellers Corporation had relatively large idle cash balances and invested them as follows in securities to be held as non-strategic investments:

On December 31, 2014, the fair values of the investments held by Sellers Corporation were: Royal Bank,
$27.50; Imperial Oil, $50.13; and BCE, $13.50. Assume the fair value and carrying value of the Minco bond was equal.

Required
1. Prepare an amortization schedule for the Minco Inc. bond showing only 2014.
2. Prepare journal entries to record the investment activity including the appropriate impairment adjustment on December 31.
3. Show how the investments will be reported on the December 31, 2014, balance sheet.
Analysis Component: If the impairment adjustment is not recorded by Sellers Corporation, what is the impact on its financialstatements?

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2014 7 19 1 Feb. Purchased 2,200 common shares of Royal Bank at $26.50. Purchased 1,200 common shares of Imperial Oil at $51.75. Paid $88,758 for a 6.8%, four-year, $90,000 Minco Inc. bond that pays interest quarterly beginning June 30. The market rate of interest on this date was 7.2%. Sellers Corporation plans to hold this investment until maturity Purchased 2,000 common shares of BCE at $13.38. Received a $0.25 per share cash dividend on the Royal Bank common shares. Sold 1,200 Royal Bank common shares at $27.00. Received interest on the Minco Inc. bond. Received a $0.50 per share cash dividend on the Imperial Oil common shares. Apr. May June 26 1 17 30 5 Aug. Sept. Received a 50.275 per share cash dividend on the remaining Royal Bank 30 31 common shares. Received interest on the Minco Inc. bond. Received interest on the Minco Inc. bond. Dec.