Hứa Phương Nam 11214107

E17.3
a, Jan 1
Debt Investment 322744,44
Cash 322744,44

b, Date Cash Received Interest Rev Bond Discount Amortization Carrying amount
1/1/2020 322744,44
1/1/2021 36000 32274,444 3726 319018,884
1/1/2022 36000 31901,8884 4098 314920,7724
1/1/2023 36000 31492,07724 4508 310412,8496
1/1/2024 36000 31041,28496 4959 305454,1346
1/1/2025 36000 30545,41346 5455 300000
180000 157255,1081 22744,89194
c, 31/12/2020
Cash 36000
Debit Investment 3726
interest revenue 32274

d, 31/12/2020
Cash 36000
Debit Investment 4098
interest revenue 31902

E17.4
a, Debt Investment 322,744.44
Cash 322,744.44
b, Dec 31, 2020
Cash 36,000
Debit Investment 3,726
 interest revenue 32,274

Fair value adjustment 1,481*

UH G/L- equity 1,481

*320,500 - 319,018

c, UH G/L equity 7,401

Fair value 7,401

Cost FV Unrealized G(L)

Available for sale bond 314,920 309,000 (5092.77)
Previous FV adj- DR 1481
FV adj - CR 7401

E17.12
situation 1 Dr CR (20.000x13)
Mar 18, 2020 Equity Investment 260.000
Cash 260.000

June 30,2020 Cash 7.500 (75.000x10%)

divident rev 7.500

Dec 31, 2020 FV Adjustment 40.000 (15-13) x20,000 shares

UH G/L0 - income 40.000

Situation 2

Jan 1 2020. Equity Investment ( sele corps) 81.000 (30.000x30% x9

 Cash 81.000

June 15, 2020 Cash 10,800 ( 36.000x30%)

equity investment ( sele corps) 10,800

Dec 31, 2020 Equity Investment (seles corps) 25.500 (85.000 x30%)
investment income 25.500

E17.8
a, Loss on impairment 80.000 (800.000-720.000)
Debt Investment 80.000

The new cost basis is 720.000.

The different between the
carrying amount and the
maturity value should not be
recorded. If the bonds are
impaired, it is unappropriate to
increase the asset back up to
its original maturity value for
held-to-maturity debt
b investment.
c, no entry needed Held-to-maturity investment are not adjusted for FV increase

E17.21
a, Net income 100.000+ ( 41.000-40.000) +( 91.000-800.000)+ (220.000-195.000)
236.000
b, Bonds Payable 25.000 (220.000-195.000)
UH G/L- income 25.000