Chapter 12, Problem 12.1BP

(1)

To determine

Debt investments: It refers to the investments made in debts by the investor for which it lends funds to the borrowing company at a predetermined interest and the debt amount is repaid on the maturity date. For example, corporate bonds, government bonds, certificate of deposits.

To Journalize: The transactions of Incorporation W for the years 2015 and 2018.

(b)

To determine

To Prepare: The adjusting entry to record the bonds at fair value.

(c)

To determine

To indicate: The unrealized gain or loss reported in the financial statements.