Safety Development Corporation had relatively large idle cash balances and invested them as follows in securities to be held as non- strategic investments: 2023 Feb. 7 Purchased 3,100 common shares of Royal Bank at $27.40, plus $500 in transaction fees. 19 Purchased 2,100 common shares of Imperial Oil at $54.00, and paid $250 in transaction fees. Apr. 1 Paid $97,182 plus $500 in transaction fees for a 8.60%, four-year, $99,000 Minco Inc. bond that pays interest quarterly beginning June 30. The market rate of interest on this date was 9.00 %. Sellers Corporation plans to hold this investment for the duration of the bond's contract life. May 26 Purchased 2,900 common shares of BCE at $14.28, plus $200 in transaction fees. June Aug. 1 Received a $0.25 per share cash dividend on the Royal Bank common shares. 17 Sold 2,100 Royal Bank common shares at $27.90. 30 Received interest on the Minco Inc. bond. 5 Received a $0.50 per share cash dividend on the Imperial Oil common shares. Sept. 1 Received a $0.275 per share cash dividend on the remaining Royal Bank common shares. 30 Received interest on the Minco Inc. bond. Dec. 31 Received interest on the Minco Inc. bond. On December 31, 2023, the fair values of the investments held by Safety Development Corporation were: Royal Bank, $28.40; Imperial Oil, $52.38; and BCE, $14.40. Assume the fair value and carrying value of the Minco Inc. bond were equal. Required: 1. Prepare an amortization schedule for the Minco Inc. bond showing only 2023. (Round your intermediate and final answers to the nearest whole dollar amount. Enter all the amounts as positive values.) Cash Interest Received Period Interest Income Discount Amort. Unamortized Discount Carrying Value Apr. 1/23 June 30/23 Sept. 30/23 Dec. 31/23
Safety Development Corporation had relatively large idle cash balances and invested them as follows in securities to be held as non- strategic investments: 2023 Feb. 7 Purchased 3,100 common shares of Royal Bank at $27.40, plus $500 in transaction fees. 19 Purchased 2,100 common shares of Imperial Oil at $54.00, and paid $250 in transaction fees. Apr. 1 Paid $97,182 plus $500 in transaction fees for a 8.60%, four-year, $99,000 Minco Inc. bond that pays interest quarterly beginning June 30. The market rate of interest on this date was 9.00 %. Sellers Corporation plans to hold this investment for the duration of the bond's contract life. May 26 Purchased 2,900 common shares of BCE at $14.28, plus $200 in transaction fees. June Aug. 1 Received a $0.25 per share cash dividend on the Royal Bank common shares. 17 Sold 2,100 Royal Bank common shares at $27.90. 30 Received interest on the Minco Inc. bond. 5 Received a $0.50 per share cash dividend on the Imperial Oil common shares. Sept. 1 Received a $0.275 per share cash dividend on the remaining Royal Bank common shares. 30 Received interest on the Minco Inc. bond. Dec. 31 Received interest on the Minco Inc. bond. On December 31, 2023, the fair values of the investments held by Safety Development Corporation were: Royal Bank, $28.40; Imperial Oil, $52.38; and BCE, $14.40. Assume the fair value and carrying value of the Minco Inc. bond were equal. Required: 1. Prepare an amortization schedule for the Minco Inc. bond showing only 2023. (Round your intermediate and final answers to the nearest whole dollar amount. Enter all the amounts as positive values.) Cash Interest Received Period Interest Income Discount Amort. Unamortized Discount Carrying Value Apr. 1/23 June 30/23 Sept. 30/23 Dec. 31/23
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Safety Development Corporation had relatively large idle cash balances and invested them as follows in securities to be held as non-
strategic investments:
2023
Feb. 7 Purchased 3,100 common shares of Royal Bank at $27.40, plus $500 in transaction fees.
19 Purchased 2,100 common shares of Imperial Oil at $54.00, and paid $250 in transaction fees.
Apr. 1 Paid $97,182 plus $500 in transaction fees for a 8.60%, four-year, $99,000 Minco Inc. bond that pays interest quarterly
beginning June 30. The market rate of interest on this date was 9.00 %. Sellers Corporation plans to hold this investment
for the duration of the bond's contract life.
May 26 Purchased 2,900 common shares of BCE at $14.28, plus $200 in transaction fees.
June
Aug.
1 Received a $0.25 per share cash dividend on the Royal Bank common shares.
17 Sold 2,100 Royal Bank common shares at $27.90.
30 Received interest on the Minco Inc. bond.
5 Received a $0.50 per share cash dividend on the Imperial Oil common shares.
Sept. 1 Received a $0.275 per share cash dividend on the remaining Royal Bank common shares.
30 Received interest on the Minco Inc. bond.
Dec. 31 Received interest on the Minco Inc. bond.
On December 31, 2023, the fair values of the investments held by Safety Development Corporation were: Royal Bank, $28.40; Imperial
Oil, $52.38; and BCE, $14.40. Assume the fair value and carrying value of the Minco Inc. bond were equal.
Required:
1. Prepare an amortization schedule for the Minco Inc. bond showing only 2023. (Round your intermediate and final answers to the
nearest whole dollar amount. Enter all the amounts as positive values.)
Cash
Interest
Received
Period Interest
Income
Discount
Amort.
Unamortized
Discount
Carrying Value
Apr. 1/23
June 30/23
Sept. 30/23
Dec. 31/23
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