Question3 (24 points) Chen Carecenters Ltd. provides financing and capital to the healthcare industry, with a...

 

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Question3 (24 points) Chen Carecenters Ltd. 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 Chen, whose fiscal year ends on December 31. Chen plans to hold the bonds to collect contractual cash flows. 2022 Jan. 1 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, 2022, to December 31, 2024.) 2025 Purchased at face value $1,000,000 of Franco Nursing Centers, 10- year, 7% bonds dated January 1, 2022, directly from Franco. Interest is paid on January 1 of each year. Accrual of interest at year-end on the Franco bonds. Jan. 11 Jan. 1 Dec. 31 Received the annual interest on the Franco bonds. Sold $500,000 Franco bonds at 105. Accrual of interest at year-end on the Franco bonds. INSTRUCTIONS a. Journalize the listed transactions for the years 2022 and 2025. b. Show the statement of financial position presentation of the bonds and interest receivable at December 31, 2022. Assume the investments are considered long-term. Question3 (24 points) Chen Carecenters Ltd. 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 Chen, whose fiscal year ends on December 31. Chen plans to hold the bonds to collect contractual cash flows. 2022 Jan. 1 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, 2022, to December 31, 2024.) 2025 Purchased at face value $1,000,000 of Franco Nursing Centers, 10- year, 7% bonds dated January 1, 2022, directly from Franco. Interest is paid on January 1 of each year. Accrual of interest at year-end on the Franco bonds. Jan. 11 Jan. 1 Dec. 31 Received the annual interest on the Franco bonds. Sold $500,000 Franco bonds at 105. Accrual of interest at year-end on the Franco bonds. INSTRUCTIONS a. Journalize the listed transactions for the years 2022 and 2025. b. Show the statement of financial position presentation of the bonds and interest receivable at December 31, 2022. Assume the investments are considered long-term.

Answer rating: 100% (QA)

a Journalizing the transactions Date Account Dr Cr 20220101 Investment in Bo... View the full answer