Brief Exercise 9-10 On October 1, Flint Ltd. purchased 8% bonds with a face value of $1,000 for trading purposes, accounting for the investment at FV-NI. The bonds were priced at 1.022 to yield Flint 4%, and pay interest annually each October 1. Flint has a December 31 year end, and at this date, the bonds' fair value was $1,055. Assume Flint applies IFRS. Your answer is correct. Prepare Flint's journal entry for the purchase of the investment. (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 o for the amounts.) Account Titles and Explanation Debit Credit FV-NI Investments 1022 cash 1022 SHOW LIST OF ACCOUNTS SHOW SOLUTION SHOW ANSWER LINK TO TEXT Your answer is correct. Prepare Flint's journal entry for the December 31 interest accrual. (Round answers to 2 decimal places, e.g. 52.75. 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 o for the amounts.) Account Titles and Explanation Debit Credit Interest Receivable 20 FV-NI Investments 9.78 Interest Income 10.22 Your answer is partially correct. Try again. Prepare Flint's journal entry for the year-end fair value adjustment. (Round answers to 2 decimal places, e.g. 52.75. 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 o for the amounts.) Account Titles and Explanation Debit Credit FV-NI Investments 55 Unrealized Gain or Loss 23.22 Your answer is partially correct. Try again. Assuming Flint applies ASPE, uses the effective interest method, and follows a policy of reporting interest income separately, prepare Flint's journal entry for the year-end fair value adjustment. (Round answers to 2 decimal places, e.g. 52.75. 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 o for the amounts.) Account Titles and Explanation Debit Credit FV-NI Investments 23.22 X Gain on Disposal of Inv 23.22