The following information relates to the debt investments of Martinez Inc during a recent year On February 1, the company purchased Gibbons Corp 10 bonds with a face value of $282,000 at 100 plus accrued interest Interest is payable on April 1 and October 1 On April 1, semi annual interest was received on the Gibbons bonds On June 15, Sampson Inc 9 bonds were purchased The $188,000 par value bonds were purchased at 100 plus accrued interest Interest dates are June 1 and December 1 On August 31, Gibbons bonds with a par value of $56,400 purchased on February 1 were sold at 99 plus accrued interest On October 1, semi annual interest was received on the remaining Gibbons bonds On December 1, semi annual interest was received on the Sampson bonds On December 31, the fair values of the bonds purchased on February 1 and June 15 were 98 5 and 101, respectively Assume the investments are accounted for under the recognition and measurement requirements of IFRS 9 Financial Instruments The company does not record interest income separately from other investment income or loss when investments are accounted for at FV NI Prepare all journal entries that you consider necessary, including December 31 year end entries, assuming these investments are accounted for at FV NI (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 Record entries in the order displayed in the problem statement List all debit entries before credit entries )

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Posted on Jul 18, 2024

The following information relates to the debt investments of Martinez Inc. during a recent year: On February 1, the company purchased Gibbons Corp. 10% bonds

The following information relates to the debt investments of Martinez Inc. during a recent year:

On February 1, the company purchased Gibbons Corp. 10% bonds with a face value of $282,000 at 100 plus accrued interest. Interest is payable on April 1 and October 1.
On April 1, semi-annual interest was received on the Gibbons bonds.
On June 15, Sampson Inc. 9% bonds were purchased. The $188,000 par-value bonds were purchased at 100 plus accrued interest. Interest dates are June 1 and December 1.
On August 31, Gibbons bonds with a par value of $56,400 purchased on February 1 were sold at 99 plus accrued interest.
On October 1, semi-annual interest was received on the remaining Gibbons bonds.
On December 1, semi-annual interest was received on the Sampson bonds.
On December 31, the fair values of the bonds purchased on February 1 and June 15 were 98.5 and 101, respectively.

Assume the investments are accounted for under the recognition and measurement requirements of IFRS 9 Financial Instruments. The company does not record interest income separately from other investment income or loss when investments are accounted for at FV-NI.

Prepare all journal entries that you consider necessary, including December 31 year-end entries, assuming these investments are accounted for at FV-NI. (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. Record entries in the order displayed in the problem statement. List all debit entries before credit entries.)