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Walls Products, an IFRS reporter, acquired $ 2 comma 380 comma 000 face value, 9% bonds on January 1 of the current year when the
Walls Products, an IFRS reporter, acquired $ 2 comma 380 comma 000 face value, 9% bonds on January 1 of the current year when the market rate of interest was 11%. Walls plans to hold the bonds to generate cash flows by collecting contractual cash flows only and it passes the SPPI test. Interest is paid annually each December 31. Walls purchased the bonds, which mature in 7 years, for $ 2 comma 155 comma 699. Walls amortizes the discount using the effective interest method. The fair value of the bonds at the end of the year is $ 2 comma 031 comma 099. Prepare the journal entries required on the date of acquisition and at the end of the first year after acquisition
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