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Harry Potter, Inc. purchased several investments in debt securities during 2020, its first year of operations. The following information pertains to these securities. Fair Value
Harry Potter, Inc. purchased several investments in debt securities during 2020, its first year of operations. The following information pertains to these securities. Fair Value 12/31/2020 Fair Value 12/31/2021 Amortized Cost 12/31/2020 Amortized Cost 12/31/2021 Held-to-Maturity Securities: Peverell Brothers Co. Bonds $ 382,000 $ 407,000 $ 374,500 $ 367,000 Fair Value 12/31/2020 Fair Value 12/31/2021 Cost (at Face Value) $ 70,600 $ 59,400 $ 67,700 Trading Securities: Elder Wand Co. Bonds Resurrection Stone Inc. Bonds Invisibility Cloak Inc. Bonds $ 55,200 $ 84,000 $ 46,000 $ 51,000 $ 45,500 $ 39,900 Fair Value 12/31/2021 Cost (at Face Value) Available-for- Sale Securities: Firebolt Co. Bonds Fair Value 12/31/2020 $ 138,900 $ 155,300 $ 147,000 1. What should Harry Potter, Inc. report for its total investment in bonds in the December 31, 2020 and December 31, 2021 balance sheets? 2. What would be the balance in Harry Potter's Accumulated Other Comprehensive Income (AOCI) with respect to these investments in its 12/31/2020 and 12/31/2021 balance sheets (ignore taxes)? 3. What total unrealized holding gain or loss would Harry Potter report in its 2020 and 2021 Net Income relative to its investments in bonds? 4. What total unrealized holding gain or loss would Harry Potter report in its 2020 and 2021 Other Comprehensive Income (OCI) relative to its investments in bonds? 2020 2021 Total investment in bonds reported on the Dec. 31 balance sheet Accumulated Other Comprehensive Income (AOCI) Balance on Dec. 31 Unrealized holding gain/loss included in Net Income Unrealized holding gain/loss included in Other Comprehensive Income (OCI). Debit . Show All Items Debit Credit 2020 2021 Total investment in bonds reported on the Dec. 31 balance sheet Accumulated Other Comprehensive Income (AOCI) Balance on Dec. 31 Unrealized holding gain/loss included in Net Income Unrealized holding gain/loss included in Other Comprehensive Income (OCI) Gain Loss
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