Prepare the journal entry related to the bonds accounted for using the amortized cost model for 2022. (Credit account titles are automatically inden the amounts.) The following amortization schedule is for Pina Colada Ltd.'s investment in Spangler Corp.'s $106,000, five-year bonds with a 6% interest rate and a 4% yield, which were purchased on December 31, 2019, for $115,438: Debit Credit Date Account Titles and Explanation Dec. 31 Cash Received Bond Premium Amortized Interest Income Dec. 31, 2019 Dec. 31, 2020 Dec. 31, 2021 Dec. 31, 2022 Dec. 31, 2023 Dec. 31, 2024 $6,360 6,360 6,360 6,360 6,360 $4,618 4,548 4,475 4,400 4,322 $1,742 1,812 1,885 1,960 2,039 Amortized Cost of Bonds $115,438 113,696 111,884 109,999 108,039 106,000 Prepare the journal entry to record the purchase of these bonds, assuming they are held for trading purposes and accounted for using the FV-NI model. Entry" for the account titles and enter o for the amounts.) Date Account Titles and Explanation Debit Credit The following schedule presents a comparison of the amortized cost and fair value of the bonds at year end: Dec. 31 Amortized cost Fair value Dec. 31, 2020 $113,696 $112,703 Dec. 31, 2021 $111,884 $116,337 Dec. 31, 2022 $109,999 $110,980 Dec. 31, 2023 $108,039 $ 108,934 Dec. 31, 2024 $106,000 $106,000 Prepare the journal entry(ies) related to the trading bonds accounted for using the FV-NI model for 2021. (Credit account titles are automatically in for the amounts.) Debit Credit Assume that Pina Colada Ltd. follows IFRS and reports interest income separately from other investment income. Date Account Titles and Explanation Dec. 31 Prepare the journal entry to record the purchase of these bonds on December 31, 2019, assuming the bonds are accounted for using the amortized cost model. (Credit account titles are automatically indented when th select "No Entry" for the account titles and enter o for the amounts.) Date Account Titles and Explanation Debit Credit Dec. 31 (To record collection of interest) Dec. 31 Prepare the journal entry related to the bonds accounted for using the amortized cost model for 2020. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no the amounts.) (To record fair value adjustment) Prepare the journal entry(ies) related to the bonds accounted for using the FV-NI model for 2023. (Credit account titles are automatically indented amounts.) Date Account Titles and Explanation Debit Credit Dec. 31 Debit Credit Date Account Titles and Explanation Dec. 31 Prepare the journal entry related to the bonds accounted for using the amortized cost model for 2022. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no the amounts.) Date Account Titles and Explanation Debit Credit (To record collection of interest) Dec. 31 Dec. 31 (To record fair value adjustment) Prepare the journal entry related to the bonds accounted for using the amortized cost model for 2022. (Credit account titles are automatically inden the amounts.) The following amortization schedule is for Pina Colada Ltd.'s investment in Spangler Corp.'s $106,000, five-year bonds with a 6% interest rate and a 4% yield, which were purchased on December 31, 2019, for $115,438: Debit Credit Date Account Titles and Explanation Dec. 31 Cash Received Bond Premium Amortized Interest Income Dec. 31, 2019 Dec. 31, 2020 Dec. 31, 2021 Dec. 31, 2022 Dec. 31, 2023 Dec. 31, 2024 $6,360 6,360 6,360 6,360 6,360 $4,618 4,548 4,475 4,400 4,322 $1,742 1,812 1,885 1,960 2,039 Amortized Cost of Bonds $115,438 113,696 111,884 109,999 108,039 106,000 Prepare the journal entry to record the purchase of these bonds, assuming they are held for trading purposes and accounted for using the FV-NI model. Entry" for the account titles and enter o for the amounts.) Date Account Titles and Explanation Debit Credit The following schedule presents a comparison of the amortized cost and fair value of the bonds at year end: Dec. 31 Amortized cost Fair value Dec. 31, 2020 $113,696 $112,703 Dec. 31, 2021 $111,884 $116,337 Dec. 31, 2022 $109,999 $110,980 Dec. 31, 2023 $108,039 $ 108,934 Dec. 31, 2024 $106,000 $106,000 Prepare the journal entry(ies) related to the trading bonds accounted for using the FV-NI model for 2021. (Credit account titles are automatically in for the amounts.) Debit Credit Assume that Pina Colada Ltd. follows IFRS and reports interest income separately from other investment income. Date Account Titles and Explanation Dec. 31 Prepare the journal entry to record the purchase of these bonds on December 31, 2019, assuming the bonds are accounted for using the amortized cost model. (Credit account titles are automatically indented when th select "No Entry" for the account titles and enter o for the amounts.) Date Account Titles and Explanation Debit Credit Dec. 31 (To record collection of interest) Dec. 31 Prepare the journal entry related to the bonds accounted for using the amortized cost model for 2020. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no the amounts.) (To record fair value adjustment) Prepare the journal entry(ies) related to the bonds accounted for using the FV-NI model for 2023. (Credit account titles are automatically indented amounts.) Date Account Titles and Explanation Debit Credit Dec. 31 Debit Credit Date Account Titles and Explanation Dec. 31 Prepare the journal entry related to the bonds accounted for using the amortized cost model for 2022. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no the amounts.) Date Account Titles and Explanation Debit Credit (To record collection of interest) Dec. 31 Dec. 31 (To record fair value adjustment)
