Manage organizational debt.

Instructions:

Do the following:

$1.$ Prepare an amortization schedule for the Jaguar bond showing only $2020$ and $2021.$

$2.$ Prepare the entries to record the transactions described above.

$3.$ Show how the investments would be reported on Monkey$$s December $31,2020$ balance sheet.

Check Figure: Jan $14,2021,$ Investment loss $=$ $$4,360$

Monkey Mortgage Inc. engaged in the following non$-$strategic investment transactions during $2020$:

$2020$

Jan $1$

Purchased for $$422,567$ a $9\mathrm{.}5\%,$ $$416,000$ Jaguar Corp. bond that matures in five years when the market interest rate was $9\mathrm{.}1\%.$ Interest is paid semi$-$annually beginning June $30,2020.$ Monkey Mortgage Inc. Plans to hold this investment until maturity.

Mar $1$

Bought $7,600$ shares of Mule Corp., paying $$34\mathrm{.}10$ per share.

May $7$

Received dividends of $$2\mathrm{.}50$ per share on the Mule Corp. shares.

Jun $1$

Paid $$332,000$ for $21,800$ shares of Zebra common shares.

Jun $30$

Received interest on the Jaguar bond.

Aug $1$

Sold the Mule Corp. shares for $$34\mathrm{.}35$ per share.

Dec $31$

Received interest on the Jaguar bond.

Dec $31$

The fair value of the Zebra shares on this date was $$15\mathrm{.}00$ per share. Assume the fair value of the bonds equalled the carrying value.

$2021$

Jan $14$

Sold the Zebra shares for $$14\mathrm{.}80$