Homework Help is Here – Start Your Trial Now!
Business
Accounting
Assuming that Swifty applies IFRS and that there has been a significant increase in credit risk, prepare the journal entry related to a December 31, 2024 fair value of $851,000 and an adjusted carrying amount at that date of $830,500. Assume that the discounted cash flow numbers provided reflect the lifetime expected risk of default. (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. List debit entry before credit entry.)

Assuming that Swifty applies IFRS and that there has been a significant increase in credit risk, prepare the journal entry related to a December 31, 2024 fair value of $851,000 and an adjusted carrying amount at that date of $830,500. Assume that the discounted cash flow numbers provided reflect the lifetime expected risk of default. (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. List debit entry before credit entry.)

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
See similar textbooks
icon
Related questions
Question

14 , please answer b2 thanks

 

Swifty Corporation owns corporate bonds at December 31, 2023, accounted for using the amortized cost model. These bonds have a par value of $896,000 and an amortized cost of $883,000. After an impairment review was triggered, Swifty determined that the discounted impaired cash flows are $826,000 using the current market rate of interest, but are $822,000 using the market rate when the bonds were first acquired. The company follows a policy of directly reducing the carrying amount of any impaired assets. Assume that no impairment loss had been recorded earlier. (a1) Your answer is correct. Assuming Swifty is a private enterprise that applies ASPE, prepare the journal entry related to the impairment at December 31, 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. List debit entry before credit entry.) Date (a2) Dec. 31, 2023 Account Titles and Explanation eTextbook and Media Loss on Impairment List of Accounts Bond Investment at Amortized Cost Date Your answer is correct. Dec. 31, 2024 Account Titles and Explanation Bond Investment at Amortized Cost Debit Assuming Swifty is a private enterprise that applies ASPE, prepare the journal entry related to a December 31, 2024 fair value of $851,000 and an adjusted carrying amount at that date of $830,500. (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. List debit entry before credit entry.) Recovery of Loss from Impairment 57000 Debit Credit 20500 57000 Attempts: 1 of 3 used Credit 20500
Transcribed Image Text:Swifty Corporation owns corporate bonds at December 31, 2023, accounted for using the amortized cost model. These bonds have a par value of $896,000 and an amortized cost of $883,000. After an impairment review was triggered, Swifty determined that the discounted impaired cash flows are $826,000 using the current market rate of interest, but are $822,000 using the market rate when the bonds were first acquired. The company follows a policy of directly reducing the carrying amount of any impaired assets. Assume that no impairment loss had been recorded earlier. (a1) Your answer is correct. Assuming Swifty is a private enterprise that applies ASPE, prepare the journal entry related to the impairment at December 31, 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. List debit entry before credit entry.) Date (a2) Dec. 31, 2023 Account Titles and Explanation eTextbook and Media Loss on Impairment List of Accounts Bond Investment at Amortized Cost Date Your answer is correct. Dec. 31, 2024 Account Titles and Explanation Bond Investment at Amortized Cost Debit Assuming Swifty is a private enterprise that applies ASPE, prepare the journal entry related to a December 31, 2024 fair value of $851,000 and an adjusted carrying amount at that date of $830,500. (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. List debit entry before credit entry.) Recovery of Loss from Impairment 57000 Debit Credit 20500 57000 Attempts: 1 of 3 used Credit 20500
Assuming that Swifty applies IFRS and that there has been a significant increase in credit risk, prepare the journal entry related to the impairment at December 31, 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. List debit entry before credit entry.) Date Dec. 31, 2023 b2) Account Titles and Explanation Loss on Impairment Bond Investment at Amortized Cost eTextbook and Media List of Accounts Debit Date Account Titles and Explanation Dec. 31, 2024 61000 Debit Credit Assuming that Swifty applies IFRS and that there has been a significant increase in credit risk, prepare the journal entry related to a December 31, 2024 fair value of $851,000 and an adjusted carrying amount at that date of $830,500. Assume that the discounted cash flow numbers provided reflect the lifetime expected risk of default. (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. List debit entry before credit entry.) 61000 Attempts: 2 of 3 used Credit
Transcribed Image Text:Assuming that Swifty applies IFRS and that there has been a significant increase in credit risk, prepare the journal entry related to the impairment at December 31, 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. List debit entry before credit entry.) Date Dec. 31, 2023 b2) Account Titles and Explanation Loss on Impairment Bond Investment at Amortized Cost eTextbook and Media List of Accounts Debit Date Account Titles and Explanation Dec. 31, 2024 61000 Debit Credit Assuming that Swifty applies IFRS and that there has been a significant increase in credit risk, prepare the journal entry related to a December 31, 2024 fair value of $851,000 and an adjusted carrying amount at that date of $830,500. Assume that the discounted cash flow numbers provided reflect the lifetime expected risk of default. (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. List debit entry before credit entry.) 61000 Attempts: 2 of 3 used Credit
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 2 steps with 2 images

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Cash Flow Statement Analysis
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS