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 3,00 common shares of Royal Bank at $27.90, plus $500 in transaction fees. 19 Purchased 2,600 connon shares of Imperial 011 at 555.25, and paid $250 in transaction fees Apr. 1 Paid $102,077 plus $500 in transaction fees for a 7.2%, four-year, $184.ee Minco Inc, bond that pays interest quarterly beginning June 30. The market rate of interest on this date was 7.60%. Sellers Corporation plans to hold this investment for the duration of the bond's contract life. May 26 Purchased 3,408 common shares of ece at $14.78, plus $200 in transaction fees. Dune 1 Received a $0.25 per share cash dividend on the Royal Bank common shares. 17 Soid 2,680 Royal Bank common shares at $28.4e, 30 Received interest on the Minco Inc. bond, Aug. 5 Received a $0.58 per share cash dividend on the Imperial oil common shares. Sept 1 Received a $e.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 cember 31, 2020 the fair values of the investments held by Safety Development Corporation were Royal Bank, $28.90, Imperial Oil, $53,63, and BCE. $14.90 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 neorest whole dollar amount. Enter all the amounts as positive values.) Cash interest Received Period Interest Income Discount Amort Unamortized Discount Carrying Value Apr 1/20 June 30,20 Sept 30720 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 1 2 3 4 5 6 7 8 ..... 12 Record the purchase of investment Note: Enter debits before credits Date General Journal Debit Credit Feb 07, 2020 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
