Brief Exercise 9-22 Whispering Winds Company has an investment in 8%, 10-year bonds of Soto Company. The investment was originally purchased at par for $400 in 2019 and it is accounted for at amortized cost. Early in 2020, Whispering Winds recorded an impairment on the Soto investment due to Soto's financial distress. At that time, the present value of the cash flows discounted using the original effective interest rate was $360, and the present value of the cash flows using the then current market rate was $364. In 2021, Soto returned to profitability and the Soto investment was no longer considered impaired. Prepare the entries Whispering Winds would make in 2020 and 2021 under ASPE. (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.) Debit Credit Date Account Titles and Explanation 2020 2021 Brief Exercise 9-22 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 Brief Exercise 9-22 Whispering Winds Company has an investment in 8%, 10-year bonds of Soto Company. The investment was originally purchased at par for $400 in 2019 and it is accounted for at amortized cost. Early in 2020, Whispering Winds recorded an impairment on the Soto investment due to Soto's financial distress. At that time, the present value of the cash flows discounted using the original effective interest rate was $360, and the present value of the cash flows using the then current market rate was $364. In 2021, Soto returned to profitability and the Soto investment was no longer considered impaired. Prepare the entries Whispering Winds would make in 2020 and 2021 under ASPE. (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.) Debit Credit Date Account Titles and Explanation 2020 2021 Brief Exercise 9-22 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
