PRINTER VERSION 4 BLACK NEXT Brief Exercise 16-5 On January 1, 2020, Crane Inc. entered into a futures contract to purchase U.S. $5,320 for $5,690 Canadian in 30 days on the Futures Exchange. On January 15, the fair value of the contract was $41 (reflecting the present value of the future cash flows under the contract). Crane Inc. was required to deposit $23 with the stockbroker as a margin Prepare the journal entries to update the books on January 1 and 15. (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 for the amounts. Record journal entries in the order presented in the problem.) Date Account Titles and Explanation Debit Credit Brief Exercise 16-15 Cullumber Capital Ltd. issued 470 $1,000 bonds at 103. After issuance, similar bonds were sold at 97. Assume that Cullumber Capital Ltd. follows ASPE and valued the debt component of the instruments first applying the residual to the equity component. On a date when the bonds had a carrying value of $450,800 and fair value of $461,780, Cullumber paid $500,000 in cash to the bondholders to retire the bonds early. Record the retirement using the book value method. (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 PRINTER VERSTON BACK NEXT Exercise 16-12 Sandhill Inc. has $4 million of 9% convertible bonds outstanding. Each $1,000 bond is convertible into 40 no par value common shares. The bonds pay interest on January 31 and July 31. On July 31, 2020, the holders of $1,200,000 of these bonds exercised the conversion privilege. On that date, the market price of the bonds was 114, the market price of the common shares was $30, the carrying value of the common shares was $15, and the Contributed Surplus - Conversion Rights account balance was $469,000. The total unamortized bond premium at the date of conversion was $195,000. The remaining bonds were never converted and were retired when they reached the maturity date. Assume that the company follows IFRS. Assuming that the book value method was used, record the conversion of the $1,200,000 of bonds on July 31, 2020. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Debit Credit Date Account Titles and Explanation July 31, 2020 Prepare the journal entry that would be required for the remaining amount in contributed Surplus-Conversion Rights when the maturity of the remaining bonds is recorded. (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 tities and enter for the amounts.) Account Titles and Explanation Debit Credit 1:09 PM Assuming that the book value method was used, record the conversion of the $1,200,000 of bonds on July 31, 2020. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit July 31, 2020 Prepare the journal entry that would be required for the remaining amount in Contributed Surplus-Conversion Rights when the maturity of the remaining bonds is recorded. (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 for the amounts.) Account Titles and Explanation Det Credit PRINTER VERSION BACK N Exercise 16-6 (Part Level Submission) On January 1, 2020, Oriole Ltd. entered into a purchase commitment contract to buy 12,600 oranges from a local company at a price of $0.50 per orange any time during the next year. The contract provides Oriole with the option either to take delivery of the oranges at any time over the next year, or to settle the contract on a net basis for the difference between the agreed-upon price of $0.50 per orange and the market price per orange for any oranges that have not been delivered. As at January 31, 2020, Oriole Ltd, did not take delivery of any oranges, and the market price for an orange was $0.45. Assuming that Oriole Ltd. follows IFRS, how should Oriole Ltd. account for this purchase agreement if it fully intends to take delivery of all 12,600 oranges over the next year? Prepare any required journal entries at January 1 and January 31. (Credit account titles are automatically indenited when the amount is entered. Do not indent manually. Il ne entry is required, select "No Entry" for the account titles and enter for the amounts) Date Account Titles and Explanation Debit Credit January 1 January 31 SAVE FOR LATER MIT ANSWER Attempts: 0 of 2 used