Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Harry Potter, Inc. purchased several investments in debt securities during 2020, its first year of operations. The following information pertains to these securities. Held-to-Maturity Fair

image text in transcribed
image text in transcribed
Harry Potter, Inc. purchased several investments in debt securities during 2020, its first year of operations. The following information pertains to these securities. Held-to-Maturity Fair Value Securities: 12/31/2020 Peverell Brothers Co. Bonds $ 393,000 Fair Value 12/31/2021 5 416,000 Anortized Cost 12/31/2020 $385,500 Anortized Cost 12/31/2021 $ 370,00 Fair Value 12/31/2020 5 77.000 Fair Value 12/31/2021 50,900 Cost (at Face Value) $82,700 Trading Securities Elder Wand Co. Bonds Resurrection Stone Inc. Bonds Invisibility Cloak The Bonds 5 68.400 $ 95,000 $57.000 $ 62,000 $56,500 $ 50,900 Fair Value 12/31/2021 Cost (at Face Value) Available for Sale Securities: Firebolt Co Bonds Fale Value 12/31/2020 5 152,100 $ 172,500 150,000 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 ( ACI) 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 Cost (at Face Value) Available for Sale Securities: Firebolt Co. Bonds Fair Value 12/31/2020 $152, 100 Fair Value 12/31/2021 $ 172,500 $ 158,000 sheets? 1. What should Harry Potter, Inc. report for its total investment in bonds in the December 31, 2020 and December 31, 2021 balance 2. What would be the balance in Harry Potter's Accumulated Other Comprehensive Income (AOCH 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 4 What total unrealized holding gain or loss would Harry Potter report in its 2020 and 2021 Other Comprehensive Income (OC) relative to its investments in bonds? bonds? 2020 2021 Total investment in bonds reported on the Dec 31 balance sheet Accumulated Other Comprehensive Income (ADC) Balance on Dec 31 Unrealized holding gain toss included in Net Income Unrealized holding gain loss included in Other Comprehensee Income (OCD)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

The Reward And Benefits Audit

Authors: Michael Armstrong

1st Edition

1907766081, 978-1907766084

More Books

Students also viewed these Accounting questions

Question

Suggest pros and cons for thick client and thick server strategies.

Answered: 1 week ago