Huang Hardware Inc. had the following transactions involving non-strategic investments during 2020:

Required

1. Prepare an amortization schedule for the Barker bond showing only 2020 and 2021.

2. Prepare journal entries to record the preceding transactions.

3. Show how Huang Hardware Inc.?s investments will appear on its December 31, 2020, balance sheet.

Analysis Component: Huang Hardware Inc. purchased the Barker Inc. bond for less than face value. Explain why.

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2020 Paid $70,000 to buy a 60-day term deposit, $70,000 principal amount, 6.23%, dated Feb. 1. Feb. Purchased 6,000 common shares of Hilton Ltd. at $11.25. 21 Apг. Received a cheque for the principal and accrued interest on the term deposit that matured today. Purchased 8,200 common shares of Elder Corp. at $9.75. 15 Purchased 14,000 common shares of Venture Ltd. at $3.40. 20 Purchased for $67,069 a 6.8%, $68,000 Barker Inc. bond that matures in four years when the market interest rate was 7.2%. Interest is paid semiannually beginning December 31, 2020. Huang Inc. plans to hold this investment until maturity. July Received a $0.30 per share cash dividend on the Hilton common shares. Sold 4,000 of the Hilton common shares at $11.15. Received a $0.30 per share cash dividend on the remaining Hilton common shares owned. 15 28 Dec. 31 Received the interest on the Barker bond. The fair values of Huang Hardware Inc's investments on this date were Hilton shares, $12.60; Elder shares, $10.30; Venture shares, $3.20. Assume the fair value and carrying value of the Barker bond were equal. 31 2021 Sold the remaining Hilton shares at $12.65 less a transaction fee of $200. Feb. 16