Prepare the appropriate journal entries for the year

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Swifty Company, a public company following IFRS purchased $70,000, 4% five-year bonds of IAA Corporation on January 1, 2021. Interest is payable on July 1 and January 1. The bond is selling at a $73,228 resulting in a bond premium of $3,228. The effective interest rate is 3%. At the year-end of December 31, the fair value of the investment was $72,500.

Question 1: Prepare the appropriate journal entries for the year ending December 31, 2021 assuming that Swifty Company uses FV-OCI. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Round answers to 0 decimal palces, e.g. 5,125.)

Reference no: EM132604205

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