FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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15, please answer last part. thanks
Accumulated Other Comprehensive Income
Allowance for Investment Impairment
Bond Investment at Amortized Cost
Cash
Commission Expense
Dividends Receivable
Dividend Revenue
FV-NI Investments
FV-OCI Investments
Gain on Disposal of Investments - FV-NI
Gain on Disposal of Investments - FV-OCI
Gain on Sale of Investments
GST Receivable
Interest Expense
Interest Income
Interest Payable
Interest Receivable
Investment in Associate
Investment Income or Loss
Loss on Discontinued Operations
Loss on Disposal of Investments FV-NI
Loss on Disposal of Investments FV-OCI
Loss on Impairment
Loss on Sale of Investments
No Entry
Note Investment at Amortized Cost
Other Investments
Recovery of Loss from Impairment
Unrealized Gain or Loss
Unrealized Gain or Loss - OCI
Transcribed Image Text:Prepare all entries required for 2022, including recognition of the impairment in value if necessary, and for 2023. (Credit account
titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the
account titles and enter O for the amounts. List all debit entries before credit entries. Round answers to 2 decimal places, e.g. 52.75.)
Date
Dec. 31,
2022
(d2)
Dec. 31,
2023
Account Titles and Explanation
Cash
Investment Income or Loss
Date
(To record collection of interest)
Dec. 31,
2024
Investment Income or Loss
FV-NI Investments
(To record fair value adjustment)
Cash
Investment Income or Loss
(To record interest income)
FV-NI Investments
eTextbook and Media
Investment Income or Loss
List of Accounts
(To record fair value adjustment)
Your answer is partially correct.
Account Titles and Explanation
Cash
Investment Income or Loss
(To record collection of interest)
FV-NI Investments
Investment Income or Loss
Debit
(To record fair value adjustment)
35280
Debit
62930
Prepare all entries required for 2024, including recognition of the recovery of the impairment in value, if necessary. (Credit account
titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the
account titles and enter O for the amounts. List all debit entries before credit entries. Round answers to 2 decimal places, e.g. 52.75.)
35280
4410
Credit
35280
35280
|||||
62930
Credit
35280
4410
Attempts: 2 of 3 used
35280
Transcribed Image Text:On January 1, 2021, Novak Ltd. paid $316,289.83 for 12% bonds of Variation Ltd. with a maturity value of $294,000. The bonds
provide the bondholders with a 10% yield. They are dated January 1, 2021, mature on January 1, 2026, and pay interest each
December 31. Novak acquired the bond investment as part of its portfolio of trading securities and it accounts for the bonds at FV-NI,
following IFRS. At December 31, 2021, Novak's year end, the bonds had a fair value of $314,300.00.
During 2022, the economic outlook related to Variation's primary business took a major downturn, so that Variation's debt was
downgraded. By the end of 2022, the bonds were priced at 85.5, and at December 31, 2023, they were selling in the market at 87.
Conditions reversed in 2024 and the outlook for Variation significantly improved, leaving its bonds with a fair value of 99.5 at
December 31, 2024.
(b)
Your Answer Correct Answer (Used)
Prepare the entries to record Novak's purchase of the bonds on January 1, 2021, the recognition of interest income and interest
received on December 31, 2021, and the fair value adjustment required at December 31, 2021. (Credit account titles are
automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles
and enter o for the amounts. List all debit entries before credit entries. Round answers to 2 decimal places, e.g. 52.75.)
Date
Jan. 1, 2021
Dec. 31, 2021
Account Titles and Explanation
FV-NI Investments
Cash
Cash
Investment Income or Loss
(To record collection of interest)
Investment Income or Loss
FV-NI Investments
(To record fair value adjustment)
Debit
316,289.83
35,280.00
1,989.83
Credit
316
35
1
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