Vilander Carecenters Inc provides financing and capital to the health care 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 2014 Jan 1 Purchased at face value $1,300,000 of Javier Nursing Centers, Inc , 10 year, 7 bonds dated January 1, 2014, directly from Javier July 1 Received the semiannual interest on the Javier bonds Dec 31 Accrual of interest at year end on the Javier bonds (Assume that all intervening transactions and adjustments have been properly recorded and that the number of bonds owned has not changed from December 31, 2014, to December 31, 2016 ) 2017 Jan 1 Received the semiannual interest on the Javier bonds Jan 1 Sold $650,000 Javier bonds at 104 July 1 Received the semiannual interest on the Javier bonds Dec 31 Accrual of interest at year end on the Javier bonds A Journalize the listed transactions for the years 2014 and 2017 (Record entries in the order displayed in the problem statement 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 0 for the amounts ) B Assume that the fair value of the bonds at December 31, 2014, was $1,430,000 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 0 for the amounts ) C Based on your analysis in part (b), show the balance sheet presentation of the bonds and interest receivable at December 31, 2014 Assume the investments are considered long term (Enter account name only and do not provide descriptive information )

The Answer is in the image, click to view ...

Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Jun 28, 2024

Vilander Carecenters Inc. provides financing and capital to the health-care industry, with a particular focus on nursing homes for the elderly. The following selected transactions

Vilander Carecenters Inc. provides financing and capital to the health-care 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.

2014
Jan. 1	Purchased at face value $1,300,000 of Javier Nursing Centers, Inc., 10-year, 7% bonds dated January 1, 2014, directly from Javier.
July 1	Received the semiannual interest on the Javier bonds.
Dec. 31	Accrual of interest at year-end on the Javier bonds.

(Assume that all intervening transactions and adjustments have been properly recorded and that the number of bonds owned has not changed from December 31, 2014, to December 31, 2016.)

2017
Jan. 1	Received the semiannual interest on the Javier bonds.
Jan. 1	Sold $650,000 Javier bonds at 104.
July 1	Received the semiannual interest on the Javier bonds.
Dec. 31	Accrual of interest at year-end on the Javier bonds.

Journalize the listed transactions for the years 2014 and 2017. (Record entries in the order displayed in the problem statement. 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 0 for the amounts.)

Assume that the fair value of the bonds at December 31, 2014, was $1,430,000. 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 0 for the amounts.)

Based on your analysis in part (b), show the balance sheet presentation of the bonds and interest receivable at December 31, 2014. Assume the investments are considered long-term. (Enter account name only and do not provide descriptive information.)