The following amortization schedule is for Grouper Ltd.'s investment in Spangler Corp.'s $109,000, five-year bonds with a 16% interest rate and a 14% yield, which were purchased on December 31, 2019, for $116,484: Cash Received Interest Income Bond Premium Amortized Dec. 31, 2019 Dec. 31, 2020 Dec. 31, 2021 Dec. 31, 2022 Dec. 31, 2023 Dec. 31, 2024 $17,440 17,440 17,440 $16,308 16,149 15,969 15,763 15,528 $1,132 1,291 1,471 1,677 1,913 Amortized Cost of Bonds $116,484 115,352 114,061 112,590 110,913 109,000 17,440 17,440 The following schedule presents a comparison of the amortized cost and fair value of the bonds at year end: Amortized cost Fair value Dec. 31, 2020 $115,352 $114,459 Dec. 31, 2021 $114,061 $117,014 Dec. 31, 2022 $112,590 $ 114,071 Dec. 31, 2023 $110,913 $112,008 Dec. 31, 2024 $109,000 $109,000 Assume that Grouper Ltd. follows IFRS and reports interest income separately from other investment income. 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 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.) 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 2020. (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.) Date Account Titles and Explanation Debit Credit Dec. 31 SHOW LIST OF ACCOUNTS 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 entry is required, select "No Entry" for the account titles and enter o for the amounts.) Date Account Titles and Explanation Debit Credit Dec. 31 SHOW LIST OF ACCOUNTS 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. (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.) 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. (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.) Date Account Titles and Explanation Debit Credit Dec. 31 SHOW LIST OF ACCOUNTS Prepare the journal entry(ies) related to the trading bonds accounted for using the FV-NI model for 2021. (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.) Date Account Titles and Explanation Debit Credit Dec. 31 (To record collection of interest) Dec. 31 (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 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.) Debit Credit Date Account Titles and Explanation Dec. 31 (To record collection of interest) Dec. 31 (To record fair value adjustment)
