Accounting Questions (9 12) Question 9 Refer to Question 9 png, use the list of accounts below List of Accounts Accumulated Other Comprehensive Income Allowance for Investment Impairment Bond Investment at Amortized Cost Cash Dividend Receivable Dividend Revenue FV NI Investments FV OCI Investments 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 Impairment Loss on Sale of Investments No Entry Note Investment at Amortized Cost Other Investments Recovery of Loss from Impairment Retained Earnings Unrealized Gain or Loss OCI Monty Led is Canadian publicly traded business with December 31 fiscal year and In order to get a better return on some of its Excess cash, Monty purchased 200 commonshares of AFS Corporation on July 1, 2020 at a price of $5 per share On the day off acquisition, Monty elected to account for the investment using the fairevo us through other comprehensive income (FV OCI) without racyding On August 1, 2020, AFS declared dividends of $1 share, and paid those dividends on August 20, 2020 On December 31, 2020, shares in AFS were trading at $7 pershare On September 15, 2021, Monty sold the shares in AFS for $8 par share Prepare the journal entries required to record the above transactions on the books of Monty Led (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 ( for the amounts Date Account Titles and Explanation Debit Credit ( To adjust to fair value on date of disposition) (To record disposal) (To reclassify holding rain)Which of the following is not a disclosure required under IFRS, when the equity method is used O The investor's share of the associates' net income O The fair value of any of these investments that have a price quoted in an active market O The investor's share of any dividends received from the associates Information about associates' year ends that are different from the investors' The objective of the disclosures required for financial assets that are investments in debt and equity instruments are O generally the same under both ASPE and IFRS O more detailed under IFRS than under ASPE O more detailed under ASPE than under IFRS O more detailed under IFRS for equity more detailed under ASPE for debt O more detailed under IFRS for debt more detailed under ASPE for equity On August 1, 2020, Swifty Corporation purchased 20 of the outstanding voting shares in WLT Corporation for $1,270,000 At the time of purchase WLT's net assets were undervalued by $70,900 and had a remaining useful life of 12 years Both companies had a December 31 year end At the end of 2020, WLT reported a net income of $330,000 Also, on December 31, 2020, the fair value of the investment in WLT shares was $1,393,000 On January 10 2021, WLT paid a cash dividend Swifty's ownership entitles it to $20 200 of the dividend Prepare the journal entries on the books of Swifty Corporation to record the transactions described above, assuming that the 20 interest in WLT does not represent significant influence, and that Swifty elected to account for its investment following the fair value through net income (FV NI) model (Credit account titles are automatically indented when the 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 ) Date Account Titles and Explanation Debit Credit v

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Accounting Questions (9 12) Question 9 Refer to Question 9 png, use the list of accounts below List of Accounts Accumulated Other Comprehensive Income Allowance for Investment Impairment Bond Investment at Amortized Cost Cash Dividend Receivable Dividend Revenue FV NI Investments FV OCI Investments 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 Impairment Loss on Sale of Investments No Entry Note Investment at Amortized Cost Other Investments Recovery of Loss from Impairment Retained Earnings Unrealized Gain or Loss   OCI Monty Led  is   Canadian publicly traded business with   December 31 fiscal year and  In order to get a better return on some of its Excess cash, Monty purchased 200 commonshares of AFS Corporation on July 1, 2020 at a price of $5 per share  On the day off acquisition, Monty elected to account for the investment using the fairevo us through other comprehensive income (FV OCI) without racyding  On August 1, 2020, AFS declared dividends of $1 share, and paid those dividends on August 20, 2020  On December 31, 2020, shares in AFS were trading at $7 pershare  On September 15, 2021, Monty sold the shares in AFS for $8 par share  Prepare the journal entries required to record the above transactions on the books of Monty Led  (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 ( for the amounts   Date Account Titles and Explanation Debit Credit ( To adjust to fair value on date of disposition) (To record disposal) (To reclassify holding rain)Which of the following is not a disclosure required under IFRS, when the equity method is used  O The investor's share of the associates' net income  O The fair value of any of these investments that have a price quoted in an active market  O The investor's share of any dividends received from the associates  Information about associates' year ends that are different from the investors' The objective of the disclosures required for financial assets that are investments in debt and equity instruments are O generally the same under both ASPE and IFRS  O more detailed under IFRS than under ASPE  O more detailed under ASPE than under IFRS  O more detailed under IFRS for equity  more detailed under ASPE for debt  O more detailed under IFRS for debt  more detailed under ASPE for equity On August 1, 2020, Swifty Corporation purchased 20  of the outstanding voting shares in WLT Corporation for $1,270,000  At the time of purchase  WLT's net assets were undervalued by $70,900 and had a remaining useful life of 12 years  Both companies had a December 31 year end  At the end of 2020, WLT reported a net income of $330,000  Also, on December 31, 2020, the fair value of the investment in WLT shares was $1,393,000  On January 10  2021, WLT paid a cash dividend  Swifty's ownership entitles it to $20 200 of the dividend  Prepare the journal entries on the books of Swifty Corporation to record the transactions described above, assuming that the 20  interest in WLT does not represent significant influence, and that Swifty elected to account for its investment following the fair value through net income (FV NI) model  (Credit account titles are automatically indented when the 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 ) Date Account Titles and Explanation Debit Credit v

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Fundamentals of Financial Accounting

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Fundamentals of Financial Accounting

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