Vilander Carecenters Inc provides financing and capital to

the health care

Vilander Carecenters Inc. provides financing and capital to the health-care industry, with a
particular focus on nursing homes for the elderly. The following selected transactions relate to
bonds acquired as an investment by Vilander, whose fiscal year ends on December
31.2014Jan. 1 Purchased at face value $2,000,000 of Javier Nursing Centers, Inc., 10-year, 8%
bonds dated January 1, 2014, directly from Javier.July 1 Received the semiannual interest on
the Javier bonds.Dec. 31 Accrual of interest at year-end on the Javier 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, 2014, to December 31, 2016.)2017Jan. 1
Received the semiannual interest on the Javier bonds.Jan. 1 Sold $1,000,000 Javier bonds at
106.July 1 Received the semiannual interest on the Javier bonds.Dec. 31 Accrual of interest at
year-end on the Javier bonds.Instructions(a) Journalize the listed transactions for the years
2014 and 2017.(b) Assume that the fair value of the bonds at December 31, 2014, was
$2,200,000. These bonds are classified as available-for-sale securities. Prepare the adjusting
entry to record these bonds at fair value.(c) Based on your analysis in part (b), show the
balance sheet presentation of the bonds and interest receivable at December 31, 2014. Assume
the investments are considered long-term. Indicate where any unrealized gain or loss is
reported in the financial statements.View Solution:
Vilander Carecenters Inc provides financing and capital to the health care
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