Safety Development Corporation had relatively large idle cash balances and invested them as follows in securities to be held as non- strategic investments: 2020 Feb. 7 Purchased 3,800 common shares of Royal Bank at $28.10, plus $500 in transaction fees. 19 Purchased 2,800 common shares of Imperial Oil at $55.75, and paid $250 in transaction fees. Apr. 1 Paid $184,061 plus $500 in transaction fees for a 7.60%, four-year, $106,000 Minco Inc. bond that pays interest quarterly beginning June 30. The market rate of interest on this date was 8.00%. Sellers Corporation plans to hold this investment for the duration of the bond's contract life. May 26 Purchased 3,600 common shares of BCE at $14.98, plus $200 in transaction fees. June 1 Received a $0.25 per share cash dividend on the Royal Bank common shares. Aug. 17 Sold 2,800 Royal Bank common shares at $28.60. 30 Received interest on the Minco Inc. bond. 5 Received a $0.50 per share cash dividend on the Imperial Oil common shares. Sept. 1 Received a $0.275 per share cash dividend on the remaining Royal Bank common shares. 30 Received interest on the Minco Inc. bond.) Dec. 31 Received interest on the Minco Inc. bond. On December 31, 2020, the fair values of the investments held by Safety Development Corporation were: Royal Bank, $29.10; Imperial Oll. $54.13; and BCE, $15.10. Assume the fair value and carrying value of the Minco Inc. bond were equal. Required: 1. Prepare an amortization schedule for the Minco Inc. bond showing only 2020. (Round your intermediate and final answers to the nearest whole dollar amount. Enter all the amounts as positive values.) Help Oll, $54.13; and BCE, $15.10. Assume the fair value and carrying value of the Minco Inc. bond were equal. Required: 1. Prepare an amortization schedule for the Minco Inc. bond showing only 2020. (Round your intermediate and final answers to the nearest whole dollar amount. Enter all the amounts as positive values.) Cash Interest Received Period Interest Income Discount Unamortized Amort Discount Carrying Value Apr. 1/201 June 30/201 Sept. 30/20 Dec. 31/20 2. Prepare journal entries to record the investment activity including the appropriate fair value adjustment on December 31. (Round your intermediate and final answers to the nearest whole dollar amount.) View transaction list Journal entry worksheet Check my work < 1 2 Record the purchase of investment. Note: Enter debits before credits Date Feb 07, 2020 5 7 12 General Journal Debit Credit Journal entry worksheet 1 3 3 4 5 6 7 8 12 Record the purchase of investment. Note: Enter debits before credits. Date Feb 19, 2020 General Journal Debit Credit Record entry Clear entry View general journal Journal entry worksheet < 1 2 8 4 5. 6 7 8 12 Record the purchase of a 4-year, 7.60%, $106,000 bond. Note: Enter debits before credits. Date Apr 01, 2020 General Journal Debit Credit Clear entry Record entry View general journal Prov 5 of 5 Next > entry worksheet < 1 2 3 4 5 6 7 12 Record the purchase of equity investment. Note: Enter debits before credits. Date: May 26, 2020 General Journal Debit Credit Clear entry Record entry View general journal Prey 5 of 5 Next > < 1 2 3 4 5 Record the collection of dividend income. Note: Enter debits before credits. Date Jun 01, 2020 19 6 7 8 12 General Journal Debit Credit Clear entry Record entry View general journal Journal entry worksheet < 1 2 3 4 5 7 8 12 Record the sale of investment. Note: Enter debits before credits. Date Jun 17, 2020 General Journal Debit Credit Clear entry View general journal Record entry Maxt Journal entry worksheet < 1 2 3 4 5 6 3 8 12 Record the interest collected on bond. Note: Enter debits before credits. Date Jun 30, 2020 General Journal Debit Credit View general journal Clear entry Record entry Journal entry worksheet 1 2 3 4 5 6 7 S 12 Record the collection of dividend income. Note: Enter debits before credits. Date Aug 05, 2020 General Journal Debit Credit View general journal Record entry Clear entry Journal entry worksheet < 1 5 6 7 8 9 10 12 Record the collection of dividend income. Note: Enter debits before credits. Date Sep 01, 2020 General Journal Debit Credit View general journal Record entry Clear entry < 1 5 19 6 7 8 9 10 12 Record the interest collected on bond. Note: Enter debits before credits. Date Sep 30, 2020 General Journal Debit Credit View general journal Record entry Clear entry < 1 5 6 7 8 9 Record the interest collected on bond. Note: Enter debits before credits. Date Dec 31, 2020 10 10 11 22 12 General Journal Debit Credit View general journal Record entry Clear entry < 1 ..... 5 6 7 8 Record the fair value adjustment. Note: Enter debits before credits. Date Dec 31, 2020 6 10 11 13 General Journal Debit Credit Record entry Clear entry View general journal 3. Show how the investments will be reported on the December 31, 2020, balance sheet. (Round your intermediate and final answers to the nearest whole dollar amount.) SAFETY DEVELOPMENT CORPORATION Partial Balance Sheet December 31, 2020 Assets Current Investments Non current investments Analysis Component: If the fair value adjustment is not recorded by Safety Development Corporation, what is the impact on the financial statements? Next