Big Foot Enterprises purchased $250,000 of ten-year, 4.5% Sasquatch Brewing Corporation bonds on July 1, 2018. Interest on the bonds is paid on July 1 of each year. The market rate on the bonds was 4%. The selling prices of the bonds at 12/31/18 and 12/31/19 were 99 and 101 respectively.

Required:

1. Prepare an amortization schedule for the entire life of the bonds using Excel.

2. Complete the following schedule showing what would have been reported on the December 31, 2019 financial statements assuming the investment was classified as a held to maturity (HTM), an available-for-sale (AFS) and a trading security (TS) at December 31, 2019. The statement of cash flow should be shown under both the direct and indirect methods.

HTM AFS TS

Balance Sheet

Income Statement

Statement of Comprehensive Income

Statement of Cash Flow