Concord Corporation purchased $58,700 of 6-year, 10% bonds of Hu Inc. for $56,170 to yield an 11% return, and classified the purchase as an amortized cost method investment. The bonds pay interest semi-annually.

Assuming Concord Corporation applies IFRS, prepare its journal entries for the purchase of the investment and the receipt of semi-annual interest and discount amortization for the first two interest payments that will be received.(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 0 for the amounts. Round answers to 0 decimal places, e.g. 5,275.)

Account Titles and Explanation

Debit

Credit

(To record purchase of bond investment)

(To record collection of semi-annual interest)

(To record collection of semi-annual interest)

Assuming Concord applies ASPE and has chosen the straight-line method of discount amortization, prepare the same three entries requested above.(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 0 for the amounts. Round answers to 0 decimal places, e.g. 5,275.)

Account Titles and Explanation

Debit

Credit

(To record purchase of bond investment)

(To record collection of semi-annual interest)

(To record collection of semi-annual interest)