Beresford Inc. purchased several investments in debt securities
during 2020, its first year of operations. The following
information pertains to these securities. The fluctuations in their
fair values are not considered permanent.
| Held-to-Maturity Securities: |
Fair Value 12/31/2020 |
Fair Value 12/31/2021 |
Amortized Cost 12/31/2020 |
Amortized Cost 12/31/2021 |
||||||||
| ABC Co. Bonds | $ | 378,000 | $ | 403,000 | $ | 370,500 | $ | 363,000 | ||||
| Trading Securities: | Fair Value 12/31/2020 |
Fair Value 12/31/2021 |
Cost |
|||||||||
| DEF Co. Bonds | $ | 51,000 | $ | 62,500 | $ | 65,000 | ||||||
| GEH Inc. Bonds | $ | 50,000 | $ | 80,000 | $ | 42,000 | ||||||
| IJK Inc. Bonds | $ | 47,000 | $ | 41,500 | $ | 35,900 | ||||||
| Available-for-Sale Securities: | Fair Value 12/31/2020 |
Fair Value 12/31/2021 |
Cost | |||||||||
| LMN Co. Bonds | $ | 135,000 | $ | 151,500 | $ | 143,000 | ||||||
What balance sheet amount would Beresford report for the total of
its investments in bonds at 12/31/2020?
| Answer: | |||
| Particulars | Fair Value | Amortized Cost | Total |
| Held to Maturity securities | |||
| ABC Co. Bonds | $ 370,500 | $ 370,500 | |
| Trading securities: | |||
| - DEF Co. Bonds | $ 51,000 | ||
| - GEH Inc. Bonds | $ 50,000 | ||
| - IJK Inc. Bonds | $ 47,000 | $ 148,000 | |
| Available for sale securites : | |||
| - LMN Co. Bonds | $ 135,000 | $ 135,000 | |
| Balance sheet amount would Beresford report for the total of its investments in bonds at 12/31/2020 | $ 653,500 |
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