ACC 303 HOMEWORK # 1 1. The Janjua Company had the following account balances at 1/1/22: Common Stock $65,000 Treasury Stock (at cost) 20,000 Paid-in-Capital in Excess of Par 80,500 Investments in AFS...

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ACC 303 HOMEWORK # 1 1. The Janjua Company had the following account balances at 1/1/22: Common Stock $65,000 Treasury Stock (at cost) 20,000 Paid-in-Capital in Excess of Par 80,500 Investments in AFS Debt Securities 40,500 Accumulated OCI on Debt Securities 600 debit Retained Earnings 13,400 On that date, the FVA account was at its proper balance. There were no sales or purchases of Common Stock or Investments during 2022. Prior to any adjusting journal entries related to the investments, 2022 Net Income was $10,600. No other transactions affecting Retained Earnings occurred. Fair Value of the Investments at 12/31/2022 was $40,000. Required: (a) Prepare the 12/31/22 journal entry to adjust the investment to fair value. (b) Prepare the complete 12/31/22 Equity section of the balance sheet. 2. The following information relates to the HTM debt securities investments of Kiran Company during 2018: a. February 1: The company purchased 10% bonds of Tempe Co. having a par value of $150,000 at 97 plus accrued interest. Interest is payable on April 1 and October 1. Maturity date is 4/1/21 b. April 1: Semiannual interest is received and amortization is updated. c. May 1: 10% bonds of Flagstaff were purchased. The bonds had a par value of $90,000 and were purchased at 102 plus accrued interest. Interest dates are January 1 and July 1. Maturity date is 7/1/21. d. July 1: Semiannual interest is received and amortization updated for the Flagstaff bonds. e. October 1: Semiannual interest is received and amortization updated for the Tempe bonds. Required: a) Prepare journal entries for all dates. Present journal entries for all items in order (a through e). No explanations or supporting computations are required. Use straight-line amortization. Do NOT use separate accounts for discounts and premiums; instead, net them into the Investments account. When computing amortization, round the monthly amortization amounts to the nearest cent. However, journal entry amounts can be rounded to the nearest dollar. SUBMISSION INFORMATION: • Submit the assignment in Excel using one page. Include your Name, Date, ACC Course, and Homework #1 in the upper left corner. • Submit your assignment through the upload feature within Moodle. Assignments should not be emailed to the instructor. PLEASE BE SURE YOUR ASSIGNMENT IS ACTUALLY SUBMITTED AND NOT IN “DRAFT” STATUS. There is a requirement to click a box to acknowledge the submission is your original work to complete the submission process.