Memo from the CFO: security purchase

To: Frank Peterson, Sr. Manager From: Bruce Nye, CFO Date: March 24, Year 7 Re: Security Purchases

Frank,

Below is the update on the debt securities purchase from earlier this year I told you about. Rebecca in Treasury can provide you with any documents that you require.

1. Security ABC - Purchased earlier this year, bonds for ABC mature in 5 years. Twenty-five bonds of ABC Company were purchased at a face amount of $4,000 per bond. Our intent is for these to be held-to-maturity.

-Bruce Nye

Interoffice Memo

To: Robyn Wilson, Staff Accountant From: Frank Peterson, Sr. Manager Date: January 7, Year 9 Re: Investment Security Balances

Robyn,

You will need the following for calculating the year-end balances for our various investment securities:

1. Security DEF was purchased in Year 6. One of the debt securities that is intended to be sold in the near term and has been classified as a trading security.
2. Security JKL was purchased in Year 6. A debt instrument that is expected to be sold within 1 year from the balance sheet date but not in the near term. These securities were not classified as trading or held-to-maturity.

I have also included memos from our CFO, Bruce Nye, that have additional information you will need on the purchases and sales in Year 7. Let me know if you have any questions.

-Frank Peterson

Memo from the CFO: Security Sales

To: Frank Peterson, Sr. Manager From: Bruce Nye, CFO Date: January 4, Year 9 Re: Security Sales

Frank,

Rebecca in Treasury will be sending you copies of all the documents in respect to the sale of GHI security in the next couple of days.

1. Security GHI - Security GHI was sold on May 9, Year 8, for $175,000. The securities were originally purchased on January 1, Year 6. No additional costs were associated with the sale except for the cost basis of the securities. We have classified this security as available-for-sale. No credit losses were ever recognized for these securities.

-Bruce Nye

Security Investment Portfolio

Jackson Development 12/31/Year 8

Securities	Cost	Fair value 12/31/Year 7	Year 8 Activity: Purchases	Year 8 Activity: Sales	Fair value 12/31/Year 8
ABC Securities		$102,000			$ 95,000
DEF Securities	$150,000	$160,000			$155,000
GHI Securities	$190,000	$165,000		$175,000
JKL Securities	$170,000	$175,000			$160,000

Review the exhibits and enter the amount that should be reported on the balance sheet at 12/31/Year 8 for each security, as well as the effects on the Year 8 income statement and other comprehensive income. Enter the appropriate amounts in the designated cells below. Indicate losses by using a leading minus (-) sign. Round all amounts to the nearest whole number. If no entry is necessary, enter a zero (0) or leave the cell blank.

Security	Amount Reported on Balance Sheet at 12/31/Year 8	Recognized as Gain (Loss) in Year 8 Income Statement	Recognized as an Increase (Decrease) in Other Comprehensive Income in Year 8
1 - 3. ABC
4 - 6. DEF
7 - 9. GHI
10 - 12. JKL