[43] Bondholders of bonds which had been issued by Kandeez Co., Inc., [KCI], with a face value $624,000 converted them into 72,000 of its no par value common shares on July 1, 2020. On that date, these shares were being traded at $51. There was a balance of $58,320 of discount on the bonds, remaining unamortized. This unamortized balance on July 1, 2020, amounted to 60% of the discount recorded on the date when the bonds had been issued. The bond discount is being amortized at $4,860 per interest period. All interest has been recorded and paid up to the date of conversion. Interest is paid on June 30 and December 31. Assume KCI is uses ASPE and the straight line amortization method.

Determine the date on which the bonds were issued.

a.

July 1, 2012.

b.

July 1, 2016

c.

January 1, 2016

d.

January 1, 2012

e.

Cannot be determined from the given data.

[44] On February 1, 2021, Price Traders, Inc. entered into a forward contract to purchase $600,000 USD for $768,000 CAD on June 30, 2020. On the day the contract was entered into, the fair value of this forward was zero. On March 31, 2021, the exchange rate was 1.36 CAD : $1 USD and PTI recorded the effects of this rate fluctuation in its books. Thereafter on June 30, 2021, PTI settled the contract on a net basis. On the settlement date, the spot rate for the currency was $1.39 CAD : $1 USD Prepare the required journal entry to record this forward contract as at June 30, 2021.

a.Cash DR.....$66,000; Investment-Derivative CR.....$48,000; Gain on Investment-Derivative CR.....$18,000

b.

Loss on Investment-Derivative DR.....$18,000; Cash CR.....$18,000.

c.

Cash DR.....$66,000; Investment-Derivative CR.....$66,000.

d.Investment-Derivative CR.....$66,000; Cash DR.....$66,000.

e.

No entry required.