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