1.On January 1, 2020, Brown Corporation purchased 10,000 shares of the outstanding voting common stock of Grizzly Company for $500,000. Grizzly has a total of 40,000 shares issued and outstanding. For the year ended December 31, 2020, Grizzly reported net income of $225,000 and paid cash dividends of $40,000. What is the carrying value of Browns investment in Grizzly at December 31, 2020?

2. Jane's Donut Co. borrowed $200,000 on January 1, 2020, and signed a two year note bearing interest at 12%. Interest is payable in full at maturity on January 1, 2022. In connection with this note, Jane should report interest expense at December 31, 2020 of what? What will the balance sheet show as interest payable?

3.Cramer Company sold fiveyear, 8% bonds on October 1, 2020. The face amount of the bonds was $100,000, while the issue price was $102,000. Interest is payable on April 1 of each year. The fiscal year of Cramer Company ends on December 31. How much interest expense will Cramer Company report in its December 31, 2020, income statement (assume straightline amortization)?

4. On January 1, 2020, Robertson Construction leased several items of equipment under a two year operating lease agreement from Jamison Leasing, which routinely finances equipment for other firms at an annual interest rate of 4%. The contract calls for four rent payments of $40,000 each, payable semiannually on June 30 and December 31 each year. The equipment was acquired by Jamison Leasing at a cost of $360,000 and was expected to have a useful life of five years with no residual value. Both firms record amortization and depreciation semiannually. Prepare the appropriate journal entries for the lessor (Jamison Leasing) and the lessee (Robertson Construction) from the beginning of the lease through the end of 2020.