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