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 2,400 common shares of Royal Bank at $26.70, plus $500 in transaction fees.
	19		Purchased 1,400 common shares of Imperial Oil at $52.25, and paid $250 in transaction fees.
Apr.	1		Paid $90,241 plus $500 in transaction fees for a 7.20%, four-year, $92,000 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 bonds contract life.
May	26		Purchased 2,200 common shares of BCE at $13.58, plus $200 in transaction fees.
June	1		Received a $0.25 per share cash dividend on the Royal Bank common shares.
	17		Sold 1,400 Royal Bank common shares at $27.20.
	30		Received interest on the Minco Inc. bond.
Aug.	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, $27.70; Imperial Oil, $50.63; and BCE, $13.70. 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.)

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.)

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.)

Analysis Component: If the fair value adjustment is not recorded by Safety Development Corporation, what is the impact on the financial statements?

Check my work 5 Safety Development Corporation had relatively large idle cash balances and invested them as follows in securities to be held as non- strategic investments: 10 points eBook Print 2020 Feb. 7 Purchased 2,400 common shares of Royal Bank at $26.70, plus $500 in transaction fees. 19 Purchased 1,400 common shares of Imperial Oil at $52.25, and paid $250 in transaction fees. Apr. 1 Paid $90,241 plus $500 in transaction fees for a 7.20%, four-year, $92,000 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 duration of the bond's contract life. May 26 Purchased 2,200 common shares of BCE at $13.58, plus $200 in transaction fees. June 1 Received a $0.25 per share cash dividend on the Royal Bank common shares. 17 Sold 1,400 Royal Bank common shares at $27.20. 30 Received interest on the Minco Inc. bond. Aug. 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. References On December 31, 2020, the fair values of the investments held by Safety Development Corporation were: Royal Bank, $27.70; Imperial Oil, $50.63, and BCE, $13.70. 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 Period Interest Discount Amort. Unamortized Discount Carrying Value Check my work 5 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.) 10 points Cash Interest Received Period Interest Income Discount Amort. Unamortized Discount Carrying Value eBook Print Apr. 1/20 June 30/20 Sept. 30/20 Dec. 31/20 References Check my work UT 5 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.) 10 points View transaction list eBook Journal entry worksheet Print References Record the purchase of investment. Note: Enter debits before credits. Date General Journal Debit Credit Feb 07, 2020 Check my work 5 Journal entry worksheet 1 2 3 4 5 6 7 8 ..... 12 > 10 points Record the purchase of investment. eBook Print Note: Enter debits before credits. References Date General Journal Debit Credit Feb 07, 2020 Record entry Clear entry View general journal Check my work 5 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.) 10 points SAFETY DEVELOPMENT CORPORATION Partial Balance Sheet December 31, 2020 Assets Current Investments: eBook Print References 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? Check my work ITUIT LUIICIIL HIVCOLIICIILS. 5 10 points eBook Print Analysis Component: If the fair value adjustment is not recorded by Safety Development Corporation, what is the impact on the financial statements? References