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On September 30, 2014, FacePlant Inc. purchased a $225,000 face-value bond for par plus accrued interest. The bond pays interest each October 31 at
On September 30, 2014, FacePlant Inc. purchased a $225,000 face-value bond for par plus accrued interest. The bond pays interest each October 31 at 4%. Management's intent is to hold for trading purposes. On December 31, 2014, the company year-end, the fair value published for bonds of similar characteristics and risk was 102.6. On March 1, 2015, FacePlant sold the bonds for 102.8 plus accrued interest. FacePlant follows IFRS. Required: a. Prepare all the related journal entries for this investment. The company wants to report interest income separately from other gains and losses.
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Intermediate accounting
Authors: J. David Spiceland, James Sepe, Mark Nelson
7th edition
978-0077614041, 9780077446475, 77614046, 007744647X, 77647092, 978-0077647094
