How much balances pertaining to the bond investment

Assignment Help Financial Accounting

Reference no: EM132800389

Question - On May 1, Bob Inc. (year-end is December 31) purchased XYZ Corp. 8.5% bonds with a face value of $444,000 at 96 plus accrued interest. Interest is payable on March 1 and September 1.

On October 31, XYZ Corp. bonds with a par value of $150,000 were sold at 106 plus accrued interest. On December 31, the fair values of XYZ Corp was 98.5.

Assume the investments are accounted for under the recognition and measurement requirements of IFRS 9 Financial Instruments

Requirements -

a. Make journal entries for Bob Inc during 2020 including December 31 year-end entries.

b. Calculate and explain how much balances pertaining to the bond investment and income accounts will be at the year-end.

It is assumed that the investment is accounted for held-for trading interest income is not reported separately from other related investment gains and losses.

Reference no: EM132800389

Questions Cloud

How might workplace health promotion efforts look : -How might workplace health promotion efforts look different in the future to meet the needs of the new workforce?

What are key performance indicators : What are key performance indicators? What is their contribution towards evaluating the effectiveness and efficiency of operational plan objectives

What compensation do computer-mediated communications offer : According to the textbook, computer-mediated communications do not reinforce oral, written (printed), musical, or non-verbal skills--the very skills that have.

Developing a resource proposal : What are the consideration that you need to take into account while developing a resource proposal for your operational plan activities? What specialist advice

How much balances pertaining to the bond investment : Calculate and explain how much balances pertaining to the bond investment and income accounts will be at the year-end

What aspects of global integration do nina and matt need : Nina Lopez and Matt O'Rourke have been trying to raise capital to expand their growing chain of cupcake shops, Treasure Cup. They make a full range of tradition

What was the over- or underapplied manufacturing overhead : Yarra Fabrication estimates that its manufacturing overhead will be $2,336,000 in year 1. What was the over- or underapplied manufacturing overhead for year 1

Compare impact of different religious beliefs and practices : Compare the impact of different religious beliefs and practices (choose three to four different religions) and how these affect the organizational culture.

What are smart goals : What are SMART goals? What is the importance of active consultation in obtaining approval for your resource proposal? Explain

User Account

All Pages