P16.1A (LO 1, 3) (Financial Statement Vilander Carecenters Inc. provides financing and capital to the healthcare industry, with a particular focus on nursing homes for the elderly. The following selected transactions relate to bonds acquired as an investment by Vilander, whose fiscal year ends on December 31. 2020 Jan. 1 Dec. 31 Accrual of interest at year-end on the Javier bonds. Purchased at face value $2,000,000 of Javier Nursing Centers, Inc., 10-year, 8% bonds dated January 1, 2020, directly from Javier. (Assume that all intervening transactions and adjustments have been properly recorded and that the number of bonds owned has not changed from December 31, 2020, to December 31, 2022.) 2023 Jan. 1 Dec. 31 Received the annual interest on the Javier bonds. Sold $1,000,000 Javier bonds at 106. Accrual of interest at year-end on the Javier bonds. Instructions a. Journalize the listed transactions for the years 2020 and 2023. b. Assume that the fair value of the bonds at December 31, 2020, was $2,200,000. These bonds are classified as available for-sale securities. Prepare the adjusting entry to record these bonds at fair value. e. Based on your analysis in part (b), show the balance sheet presentation of the bonds and interest receivable at December 31, 2020. Assume the investments are considered long-term. Indicate where any unrealized gain or loss is reported in the financial statements.

P16.1A (LO 1, 3) Financial Statement) Vilander Carecenters Inc. provides financing and capital to the healtheare industry, with a particular foeth on nursing homes for the elderly. The following selected transactions relate to bonds acquired as an investment by Vilander, whose fiscal year ends on December 31. 2020 Jan. I Purchased at face value $2,000,000 of Javier Nursing Centers, Inc., 10-year, 8\% bonds dated January 1,2020 , directly from Javier. Dec. 3) Aceraal of interest at year-end on the Javier bonds. (Assume that all intervening transactions and adjustments have been properly reconded and that the number of bonds owned has not ctanged from December 31, 2020, to December 31, 2022) 2023 Jan. I Received the annul interest on the Javier bonds. Jan 1 Sold $1,000,000 Javier bonds at 106. Dec. 31 Accrual of interest at yearend on the Javier bonds. Instructions a. Journalize the lisfed transactions for the years 2020 and 2023. b. A curne that the faif value of the bonds at December 31, 2020, was \$2,200 000. These bonds classified as available-for-ale sccurities. Prepare the adjusting cniry to record these bonds at varue. e. Based en yous analysis in part (b), show the batance shoet prosentation of the bonds and inter receivable at December 31, 2020, Asame the imvesments are cousidered long-term. Indieate wh any unrealized gasn or Ioss is reported in the fininctal statements