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(b2) Your answer is partially correct. 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.) Date Account Titles and Explanation Dec. 31, 2024 Debit 20500 Credit 20500

(b2) Your answer is partially correct. 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.) Date Account Titles and Explanation Dec. 31, 2024 Debit 20500 Credit 20500

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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14, please answer last part. thanks

please pick from the follow accounts:

 

Accumulated Other Comprehensive Income

Allowance for Investment Impairment

Bond Investment at Amortized Cost

Cash

Commission Expense

Dividends Receivable

Dividend Revenue

FV-NI Investments

FV-OCI Investments

Gain on Disposal of Investments - FV-NI

Gain on Disposal of Investments - FV-OCI

Gain on Sale of Investments

GST Receivable

Interest Expense

Interest Income

Interest Payable

Interest Receivable

Investment in Associate

Investment Income or Loss

Loss on Discontinued Operations

Loss on Disposal of Investments FV-NI

Loss on Disposal of Investments FV-OCI

Loss on Impairment

Loss on Sale of Investments

No Entry

Note Investment at Amortized Cost

Other Investments

Recovery of Loss from Impairment

Retained Earnings

Unrealized Gain or Loss

Unrealized Gain or Loss - OCI

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 eTextbook and Media Loss on Impairment List of Accounts Bond Investment at Amortized Cost Date Your answer is partially correct. Dec. 31, 2024 Debit Account Titles and Explanation 61000 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.) Debit Credit 20500 61000 Attempts: 2 of 3 used Credit 20500
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 eTextbook and Media Loss on Impairment List of Accounts Bond Investment at Amortized Cost Date Your answer is partially correct. Dec. 31, 2024 Debit Account Titles and Explanation 61000 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.) Debit Credit 20500 61000 Attempts: 2 of 3 used Credit 20500
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