Question
27 Grouper Corporation purchased $60,800 of 4-year, 7% bonds of Hu Inc. for $58,753 to yield an 8% return, and classified the purchase as an
27
Grouper Corporation purchased $60,800 of 4-year, 7% bonds of Hu Inc. for $58,753 to yield an 8% return, and classified the purchase as an amortized cost method investment. The bonds pay interest semi-annually.
Assuming Grouper Corporation applies IFRS, prepare its journal entries for the purchase of the investment and the receipt of semi-annual interest and discount amortization for the first two interest payments that will be received. (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 0 for the amounts. Round answers to 0 decimal places, e.g. 5,275.)
List of Accounts
Assistance Used
- Accumulated Other Comprehensive Income
- Allowance for Investment Impairment
- Bond Investment at Amortized Cost
- Cash
- Dividends Receivable
- Dividend Revenue
- FV-NI Investments
- FV-OCI Investments
- Gain on Disposal of Investments in Associate
- Gain on Disposal of Investments - Cost/Amortized Cost
- Gain on Disposal of Investments - FV-NI
- Gain on Disposal of Investments - FV-OCI
- Gain or Loss in Value of Investment Property
- 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 - Cost/Amortized Cost
- Loss on Disposal of Investments - FV-NI
- Loss on Disposal of Investments - FV-OCI
- Loss on Impairment
- No Entry
- Note Investment at Amortized Cost
- Other Investments
- Recovery of Loss from Impairment
- Retained Earnings
- Unrealized Gain or Loss
- Unrealized Gain or Loss - OCI
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