Question 5 -14 View Policies Current Attempt in Progress Swifty Corp prepares financial statements annually on December 31, its fiscal year end. The company follows IFRS. At December 31 2020, the company has the account Investments in its general ledger containing the following debits for investment purchases, and no credits $ 38,600 100.000 Feb 1, 2020 Chiang Corp. common shares, no par value 200 shares Government of Canada bonds 6% due April 1, 2030, interest payable April 1 and October 1. 100 bonds of April 1 $1,000 par value each Monet Corp. 12% bonds par $58,000, dated March 1 2020 purchased at 108 plus accrued interest to yield 11%, interest payable annually on March 1 due on March 1, 2037 Nov 1 $68.000, six-month non interest bearing note that matures on May 1 2021 bought to yield 10% July 1 64.960 64 762 The fair values of the individual securities on December 31 2020 were Chiang Corp. common shares (active stock market pricey S 34000 Government of Canada bonds 105.800 Monet Corp bonds 86.000 Note receivable 0 00 Prepare the entries necessary to correct any errors in the Investments account, assuming that the Government of Canada bonds were being managed for their yield to maturity, and that the Monet bonds were acquired with the hope of gaining from falling interest rates. The Chiang Corp. shares were acquired with the hope of ensuring the supply of raw materials from this company in the future Swifty tracks interest income for all debt investments (Round answers to 0 decimal places, 0.g. 5,275. 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.) Account Titles and Explanation Debit Credit e Textbook and Media Prepare the entries required to record any accrued interest, amortization of any premium or discount, and recognition of fair values on December 31, 2020. (Round answer to 0 decimal places, 0.9. 5,275, Credit account titles are automatically indented when the amount is entered. Do not indent manually. I no entry is required, select "No Entry" for the account titles and enter for the amounts.) Debit Credit Date Account Titles and Explanation Dec. 31 (To record accrued interest) Dec. 31 (To record fair value adjustment) e Textbook and Media During 2021, the following transactions took place 1. The note was sold on February 1, 2021, for $67,421 2. The Government of Canada bonds were sold on July 1, 2021, for $108,000 plus accrued interest Prepare entries to record these transactions. (Round answer to o decimal places, 0.9, 5,275. Credit account titles are automatically indented when the amount is enterod. Do not indent manually. If no entry is required, select "No Entry for the account titles and enter 0 for the amounts.) Date Account Titles and Explanation Debit Credit Feb. 1 (Amortize discount on note receivable) Feb. 1 (Sale of note receivable) Feb. 1 > (Amortize discount on note receivable) Feb. 1 (Sale of note receivable) (Amortize discount on note receivable) Feb. 1 (Sale of note receivable)
