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Weygandt, Accounting Principles, 12e
Chapter Sixteen
Solutions to Challenge Exercises
Challenge Exercise 16-1 – Solution
2017
(a) Jan. 1 Debt Investments ......................................................... 61,200
Cash ................................................................... 61,200
2018
Jan. 1 Cash ........................................................................... 6,000
Interest Receivable ...................................................... 6,000
Challenge Exercise 16-2 – Solution
(a) Dec. 31 Unrealized Loss—Income .................................................... 1,600
Fair Value Adjustment—Trading ................................ 1,600
(b) Balance Sheet
Income Statement
Other expenses and losses
Unrealized loss on trading securities ................................................ $ 1,600
(c) Cash… ......................................................................... 18,500
