rcise 9-10 On October 1, Whispering Winds Ltd. purchased 7% bonds with a face value of $1,000 for trading purposes, accounting for the investment at FV-NI. The bonds were priced at 1.022 to yield Whispering Winds 5%, and pay interest annually each October 1. Whispering Winds has a December 31 year end, and at this date, the bonds' fair value was $1,040. Assume Whispering Winds applies IFRS. Prepare Whispering Winds's journal entry for the purchase of the investment. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry for the amounts.) required, select "No Entry" for the account titles and enter Account Titles and Explanation Debit Credit SHOW LIST OF ACCOUNTS LINK TO TEXT Prepare Whispering Winds's journal entry for the December 31 interest accrual. (Round answers to 2 decimal places, e.g. 52.75. 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.) Account Titles and Explanation Debit Credit SHOW LIST OF ACCOUNTS LINK TO TEXT Prepare Whispering Winds's journal entry for the year-end fair value adjustment. (Round answers to 2 decimal places, e.g. 52.75. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is require select "No Entry" for the account titles and enter 0 for the amounts.)
rcise 9-10 On October 1, Whispering Winds Ltd. purchased 7% bonds with a face value of $1,000 for trading purposes, accounting for the investment at FV-NI. The bonds were priced at 1.022 to yield Whispering Winds 5%, and pay interest annually each October 1. Whispering Winds has a December 31 year end, and at this date, the bonds' fair value was $1,040. Assume Whispering Winds applies IFRS. Prepare Whispering Winds's journal entry for the purchase of the investment. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry for the amounts.) required, select "No Entry" for the account titles and enter Account Titles and Explanation Debit Credit SHOW LIST OF ACCOUNTS LINK TO TEXT Prepare Whispering Winds's journal entry for the December 31 interest accrual. (Round answers to 2 decimal places, e.g. 52.75. 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.) Account Titles and Explanation Debit Credit SHOW LIST OF ACCOUNTS LINK TO TEXT Prepare Whispering Winds's journal entry for the year-end fair value adjustment. (Round answers to 2 decimal places, e.g. 52.75. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is require select "No Entry" for the account titles and enter 0 for the amounts.)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Brief Exercise 9-10
On October 1, Whispering Winds Ltd. purchased 7% bonds with a face value of $1,000 for trading purposes, accounting for the investment at FV-NI. The bonds were priced at 1.022 to yield Whispering Winds 5%, and pay interest annually each October 1. Whispering Winds
has a December 31 year end, and at this date, the bonds' fair value was $1,040. Assume Whispering Winds applies IFRS.
Prepare Whispering Winds's journal entry for the purchase of the investment. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is reguired, select "No Entry" for the account titles and enter o
for the amounts.)
Account Titles and Explanation
Debit
Credit
SHOW LIST OF ACCOUNTS
| LINK ΤO ΤΕXT
Prepare Whispering Winds's journal entry for the December 31 interest accrual. (Round answers to 2 decimal places, e.g. 52.75. 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.)
Account Titles and Explanation
Debit
Credit
SHOW LIST OF ACCOUNTS
LINK TO TEXT
Prepare Whispering Winds's journal entry for the year-end fair value adjustment. (Round answers to 2 decimal places, e.g. 52.75. 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.)
Account Titles and Explanation
Debit
Credit
Transcribed Image Text:Assume Whispering Winds applies ASPE, uses the effective interest method, and follows a policy of reporting interest income separately, prepare Whispering Winds's journal entry for the December 31 interest accrual. (Round answers to 2 decimal places, e.g. 52.75.
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.)
Account Titles and Explanation
Debit
Credit
SHOW LIST OF ACCOUNTS
LINK TO TEXT
Assuming Whispering Winds applies ASPE, uses the effective interest method, and follows a policy of reporting interest income separately, prepare Whispering Winds's journal entry for the year-end fair value adjustment. (Round answers to 2 decimal places, e.g. 52.75.
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.)
Account Titles and Explanation
Debit
Credit
SHOW LIST OF ACCOUNTS
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