Safety Development Corporation had relatively large idle cash balances and invested them as follows in securities...
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Safety Development Corporation had relatively large idle cash balances and invested them as follows in securities to be held as non- strategic investments: 2028 Feb. 7 Purchased 2,200 common shares of Royal Bank at $26.50, plus $500 in transaction fees. 19 Purchased 1,200 common shares of Imperial Oil at $51.75, and paid $250 in transaction fees. Apr. 1 Paid $88,258 plus $500 in transaction fees for a 6.8%, four-year, $98,000 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 for the duration of the bond's contract life. May 26 Purchased 2,8ee common shares of BCE at $13.38, plus $200 in transaction fees. June 1 Received a $0.25 per share cash dividend on the Royal Bank common shares. 17 Sold 1,200 Royal Bank common shares at $27.00. 30 Received interest on the Minco Inc. bond.. Aug. 5 Received a $0.50 per share cash dividend on the Imperial Oil common shares. Sept. 1 Received a $0.275 per share cash dividend on the remaining Royal Bank common shares. 30 Received interest on the Minco Inc. bond. Dec. 31 Received interest on the Minco Inc. bond.. On December 31, 2020, the fair values of the investments held by Safety Development Corporation were: Royal Bank, $27.50; Imperial Oil, $50.13; and BCE, $13.50. Assume the fair value and carrying value of the Minco Inc. bond were equal. Required: 1. Prepare an amortization schedule for the Minco Inc. bond showing only 2020. (Round your intermediate and final answers to the nearest whole dollar amount. Enter all the amounts as positive values.) Apr. 1/20 June 30/20 Sept. 30/201 Dec. 31/20 Cash Interest Received Period Interest Income Discount Unamortized Amort. Discount Carrying Value Safety Development Corporation had relatively large idle cash balances and invested them as follows in securities to be held as non- strategic investments: 2028 Feb. 7 Purchased 2,200 common shares of Royal Bank at $26.50, plus $500 in transaction fees. 19 Purchased 1,200 common shares of Imperial Oil at $51.75, and paid $250 in transaction fees. Apr. 1 Paid $88,258 plus $500 in transaction fees for a 6.8%, four-year, $98,000 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 for the duration of the bond's contract life. May 26 Purchased 2,8ee common shares of BCE at $13.38, plus $200 in transaction fees. June 1 Received a $0.25 per share cash dividend on the Royal Bank common shares. 17 Sold 1,200 Royal Bank common shares at $27.00. 30 Received interest on the Minco Inc. bond.. Aug. 5 Received a $0.50 per share cash dividend on the Imperial Oil common shares. Sept. 1 Received a $0.275 per share cash dividend on the remaining Royal Bank common shares. 30 Received interest on the Minco Inc. bond. Dec. 31 Received interest on the Minco Inc. bond.. On December 31, 2020, the fair values of the investments held by Safety Development Corporation were: Royal Bank, $27.50; Imperial Oil, $50.13; and BCE, $13.50. Assume the fair value and carrying value of the Minco Inc. bond were equal. Required: 1. Prepare an amortization schedule for the Minco Inc. bond showing only 2020. (Round your intermediate and final answers to the nearest whole dollar amount. Enter all the amounts as positive values.) Apr. 1/20 June 30/20 Sept. 30/201 Dec. 31/20 Cash Interest Received Period Interest Income Discount Unamortized Amort. Discount Carrying Value
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Question Part 1 Cash Interest Received Period Interest Income Discount Amort Unamortized Discount Carrying Value Apr 1 20 1242 88758 June 30 20 1530 1... View the full answer
Related Book For
Fundamental Accounting Principles Volume II
ISBN: 978-1259066511
14th Canadian Edition
Authors: Larson Kermit, Jensen Tilly
Posted Date:
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