Ivanhoe Carecenters Ltd. 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 Ivanhoe, whose fiscal year ends on December 31. 2020 Jan. 1 Dec. 31 Accrual of interest at year-end on the Franco 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, 2020, to December 31, 2022.) 2023 Jan. 1 Purchased at face value HK$1,898,000 of Franco Nursing Centers, 10-year, 10% bonds dated January 1, 2020, directly from Franco. Interest is paid on January 1 of each year. Jan. 1 Dec. 31 Received the annual interest on the Franco bonds. Sold HK$949,000 Franco bonds at 103. Accrual of interest at year-end on the Franco bonds.

Ivanhoe Carecenters Ltd. 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 Ivanhoe, whose fiscal year ends on December 31. 2020 Jan. 1 Dec. 31 Accrual of interest at year-end on the Franco 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, 2020, to December 31, 2022.) 2023 Jan. 1 Purchased at face value HK$1,898,000 of Franco Nursing Centers, 10-year, 10% bonds dated January 1, 2020, directly from Franco. Interest is paid on January 1 of each year. Jan. 1 Dec. 31 Received the annual interest on the Franco bonds. Sold HK$949,000 Franco bonds at 103. Accrual of interest at year-end on the Franco bonds.

Financial Accounting

15th Edition

ISBN:9781337272124

Author:Carl Warren, James M. Reeve, Jonathan Duchac

Publisher:Carl Warren, James M. Reeve, Jonathan Duchac

Chapter15: Investments And Fair Value Accounting

Section: Chapter Questions

Problem 1PA: Soto Industries Inc. is an athletic footware company that began operations on January 1, Year 1. The...

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Question

Please don't give image format

Journalize the listed transactions for the years 2020 and 2023. (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.)
Date
✪
Account Titles and Explanation
(To record the receipt of annual interest on Franco bonds)
(To record the sale of Franco bonds)
Show Transcribed Text
Ivanhoe Carecenters Ltd.
Statement of Financial Position (Partial)
Show the statement of financial position presentation of the bonds and interest receivable at December 31, 2020. Assume the
investments are considered long-term.
O
HK$
Debit
HK$
Credit

Ivanhoe Carecenters Ltd. 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 Ivanhoe, whose fiscal year ends on
December 31.
2020
Jan. 1
Dec. 31 Accrual of interest at year-end on the Franco 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, 2020, to December 31, 2022.)
2023
Jan. 1
Purchased at face value HK$1,898,000 of Franco Nursing Centers, 10-year, 10% bonds dated January 1, 2020, directly
from Franco. Interest is paid on January 1 of each year.
Jan. 1
Dec. 31
Received the annual interest on the Franco bonds.
Sold HK$949,000 Franco bonds at 103.
Accrual of interest at year-end on the Franco bonds.

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