Prepare a partial comparative statement of financial position at December 31, 2020 and 2021, showing only the related accounts for the bond investment. (Round answers to O decimal places, e.g. 5,275. Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) Blue Spruce Aggregates Ltd. Statement of Financial Position December 31 2021 $ GA 2020 $ LA $
Prepare a partial comparative statement of financial position at December 31, 2020 and 2021, showing only the related accounts for the bond investment. (Round answers to O decimal places, e.g. 5,275. Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) Blue Spruce Aggregates Ltd. Statement of Financial Position December 31 2021 $ GA 2020 $ LA $
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:On July 1, 2020, Blue Spruce Aggregates Ltd. purchased 5% bonds having a maturity value of $55,000 for $57,014. The bonds provide
the bondholders with a 4% yield. The bonds mature four years later, on July 1, 2024, with interest receivable June 30 and December
31 of each year. Blue Spruce uses the effective interest method to allocate unamortized discount or premium. The bonds are
accounted for using the FV-OCI model with recycling. Blue Spruce has a calendar year end. The fair value of the bonds at December
31, 2020 and 2021, was $57,017 and $56,205, respectively. Assume fair value adjustments are recorded at year end only.
Immediately after collecting interest on December 31, 2021, the bonds were sold for $56,205. Also, assume that the bond is the only
investment held by Blue Spruce Aggregates Ltd.
Transcribed Image Text:Prepare a partial comparative statement of financial position at December 31, 2020 and 2021, showing only the related accounts
for the bond investment. (Round answers to O decimal places, e.g. 5,275. Enter negative amounts using either a negative sign preceding
the number e.g. -45 or parentheses e.g. (45).)
Blue Spruce Aggregates Ltd.
Statement of Financial Position
December 31
V
2021
2020
LA
tA
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