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.

2017
Jan. 1		Purchased at face value $2,740,000 of Javier Nursing Centers, Inc., 10-year, 8% bonds dated January 1, 2017, directly from Javier.
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, 2017, to December 31, 2019.)

2020
Jan. 1		Received the annual interest on the Javier bonds.
Jan. 1		Sold $1,370,000 Javier bonds at 106.
Dec. 31		Accrual of interest at year-end on the Javier bonds.

Journalize the listed transactions for the years 2017 and 2020. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem. If no entry is required, select "No entry" for the account titles and enter 0 for the amounts.)

Date	Account Titles and Explanation	Debit	Credit
Jan. 1, 2020Jan. 1, 2017Dec. 31, 2020Dec. 31, 2017
Jan. 1, 2017Dec. 31, 2017Jan. 1, 2020Dec. 31, 2020
Jan. 1, 2017Dec. 31, 2017Jan. 1, 2020Dec. 31, 2020
	(To record receipt of accrued interest)
Jan. 1, 2017Dec. 31, 2017Jan. 1, 2020Dec. 31, 2020
	(To record sale of Javier bonds)
Jan. 1, 2017Dec. 31, 2017Jan. 1, 2020Dec. 31, 2020

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Assume that the fair value of the bonds at December 31, 2017, was $3,014,000. 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.)

Date	Account Titles and Explanation	Debit	Credit
Jan. 1, 2017Dec. 31, 2017Jan. 1, 2020Dec. 31, 2020

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Based on your analysis in part (b), show the balance sheet presentation of the bonds and interest receivable at December 31, 2017. 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, 2017For the Year Ended December 31, 2017For the Quarter Ended December 31, 2017
Property, Plant and EquipmentTotal Stockholders' EquityTotal Long-term LiabilitiesTotal AssetsInvestmentsStockholders' EquityTotal Current LiabilitiesCurrent AssetsTotal Intangible AssetsTotal LiabilitiesTotal Long-term InvestmentsCurrent LiabilitiesTotal Liabilities and Stockholders' EquityTotal Current AssetsTotal Property, Plant and EquipmentIntangible AssetsLong-term Liabilities
			$
Total Current AssetsTotal Property, Plant and EquipmentIntangible AssetsTotal Current LiabilitiesTotal Long-term LiabilitiesTotal Long-term InvestmentsTotal Intangible AssetsTotal LiabilitiesTotal Liabilities and Stockholders' EquityInvestmentsTotal Stockholders' EquityCurrent LiabilitiesProperty, Plant and EquipmentCurrent AssetsLong-term LiabilitiesStockholders' EquityTotal Assets
			$