Problem 16-01A a-c (Part Level Submission) (Video) 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 Purchased at face value $2,000,000 of Javier Nursing Centers, Inc., 10-year, 8% bonds dated January 1, 2017, directly from Javier. Accrual of interest at year-end on the Javier bonds. Dec. 31 (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 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. (b) Your answer is correct. 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. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter O for the amounts.) Date Account Titles and Explanation Debit Credit Dec. 31, 2020 Fair Value Adjustment-Available-for-Sale 200000 Unrealized Gain or Loss-Equity 200000 (c) Your answer is partially correct. Try again. 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. (Enter account name only and do not provide descriptive information.) Vilander Carecenters Inc. Balance Sheet (Partial) December 31, 2020 Current Assets Interest Receivable 160000 1 Investments Debt Investments, at fair value X Total Assets 2200000 List Of Accounts Problem 16-01A a-c (Part Level Submission) (Video) Cash Debt Investments Dividend Revenue Fair Value Adjustment-Available-for-Sale Fair Value Adjustment-Stock Fair Value Adjustment-Trading Gain on Sale of Debt Investments Gain on Sale of Stock Investments Interest Receivable Interest Revenue Loss on Sale of Debt Investments Loss on Sale of Stock Investments No Entry Revenue from Stock Investments Short-Term Investments Stock Investments Unrealized Gain or Loss-Equity Unrealized Gain or Loss-Income