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CH21

The document contains financial information for multiple companies, including interest received, fair values, carrying amounts, and unrealized gains/losses over several dates. Numbers are provided for assets, liabilities, and equity accounts.

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7yhwpt75hd
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23 views

CH21

The document contains financial information for multiple companies, including interest received, fair values, carrying amounts, and unrealized gains/losses over several dates. Numbers are provided for assets, liabilities, and equity accounts.

Uploaded by

7yhwpt75hd
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as XLSX, PDF, TXT or read online on Scribd
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COMPLEX COMPANY

Interest
DATE received
1/1/21
12/31/21 300,000
12/31/22 300,000
12/31/23 300,000
12/31/24 300,000

FV - 2021
Carrying amount 12-31-21
Unrealized gain - OCI 2021

FV - 2022
Carrying amount 12-31-22
Cumulative unrealized gain - 2022
Unrealized gain - OCI 2021
Unrealized gain - OCI 2022

1/1/21 FA@FV-OCI 4,668,600


Cash

12/31/21 Cash 300,000


FA@FV-OCI 73,488
Interest income

12/31/21 FA@FV-OCI 507,912


Unrealized gain - OCI

12/31/22 Cash 300,000


FA@FV-OCI 79,367
Interest income

12/31/22 FA@FV-OCI 170,633


Unrealized gain - OCI

12/31/22 Investment in bonds 5,500,000


FA@FV-OCI

12/21/22 Unrealized gain - OCI 678,545


Investment in bonds

12/31/23 Cash 300,000


FA@FV-OCI 85,716
Interest income
PROBLEM 21-2
Interest
DATE received
1/1/21
12/31/21 160,000
12/31/22 160,000
12/31/23 160,000

1/1/21 Investment in bonds 1,900,000


Cash

12/31/21 Cash 160,000


Investment in bonds 30,000
Interest income

FV -2021
Carrying amount 12-31-21
Unrealized gain - OCI

12/31/21 FA@FV-OCI 270,000


Unrealized gain - OCI

12/31/22 FA@FV-OCI 1,930,000


Investment in bonds

SOLEDAD COMPANY
Interest
DATE received
1/1/21
12/31/21 300,000
12/31/22 300,000

1/1/21 Investment in bonds 3,405,000


Cash

12/31/21 Cash 300,000


Investment in bonds
Interest income

12/31/22 Cash 300,000


Investment in bonds
Interest income

FV - 12-31-22
Carrying amount 12-31-22
Loss on reclassification

12/31/22 FA@FV-PL 3,347,592


Investment in bonds

12/31/22 Loss on reclassification 502,592


FA@FV-PL

12/31/23 Cash 300,000


Interest income

ROYALTY COMPANY

1. Interest Inccome - 2021 (6Mx9%)

2. FV -12/31/21 5,450,000
Carrying amount - 5,550,000
Unrealized loss - 100,000

3. FV -12/31/22 6,150,000
Carrying amount - 5,450,000
Unrealized gsin 700,000

4. Interest Inccome - 2023 (6..15Mxx8%) 492,000

1/1/21 Trading securities 5,550,000


Cash

12/31/21 Cash 540,000


Interest income

12/31/21 Unrealized loss - PL 100,000


Trading securities
12/31/22 Cash 540,000
Interest income

12/31/22 Trading securities 700,000


Unrealized gain - PL

1/1/23 Investment in bonds 6,150,000


Trading securities

12/31/23 Cash 540,000


Investment in bonds
Interest income

ZETA COMPANY

Acquisition price
1. Interest income 2021 (4.335Mx6%) 260,100
Interest received (4Mx8%) 320,000
Amortization 2021
Carrying amount 12/31/21
FV 12/31/21
2. Unrealized loss - 2021

3. Interest income 2022

1/1/21 FA@FV-OCI 4,335,000


Cash

12/31/21 Cash 320,000


FA@FV-OCI
Interest income

12/31/21 Unrealized loss - OCI 405,100


FA@FV-OCI

1/1/2023 FA@FV-PL 3,870,000


FA@FV-OCI

1/1/2023 Unrealized loss - PL 405,100


Unrealized loss - OCI

12/31/23 Cash 320,000


Interest income

Unrealized loss - PL 255,000


FA@FV-PL
Interest Amortization of Carrying
Income Discount Amount
4,668,600
373,488 73,488 4,742,088
379,367 79,367 4,821,455
385,716 85,716 4,907,171
392,829 92,829 5,000,000

5,250,000
- 4,742,088
507,912

5,500,000
- 4,821,455
678,545
- 507,912
170,633

4,668,600
4,668,600
73,488
507,912
373,488 5,250,000
79,367
170,633
507,912 5,500,000 678,545
4,821,455

379,367

170,633

5,500,000

678,545

385,716
Interest Amortization of Carrying
Income Discount Amount
1,900,000
190,000 30,000 1,930,000
193,000 33,000 1,963,000
197,000 37,000 2,000,000

1,900,000

190,000

2,200,000
- 1,930,000
270,000

270,000

1,930,000

Interest Amortization of Carrying


Income Premium Amount
3,405,000
272,400 27,600 3,377,400
270,192 29,808 3,347,592
3,405,000

27,600
272,400

29,805
270,192

2,845,000
- 3,347,592
- 502,592

3,347,592

502,592

300,000

540,000

5,550,000
5,550,000 100,000

540,000 5,450,000
700,000

100,000 6,150,000
540,000

700,000

6,150,000

48,000
492,000

4,335,000

59,900
4,275,100
3,870,000
405,100

320,000

4,335,000

59,900
260,100

405,100

3,870,000

405,100

320,000

255,000

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