Required a) Explain, including calculations, how the issue of the bond would be accounted for by Corgi at 1 January 2021. You should also state the journal entry at this date. b) Explain why the bond will be remeasured to amortised cost at 31 December 2021, rather than to fair value, c) Show the journal entries for the year end remeasurement, stating clearly the position of each entry in the appropriate financial statement.

Required a) Explain, including calculations, how the issue of the bond would be accounted for by Corgi at 1 January 2021. You should also state the journal entry at this date. b) Explain why the bond will be remeasured to amortised cost at 31 December 2021, rather than to fair value, c) Show the journal entries for the year end remeasurement, stating clearly the position of each entry in the appropriate financial statement.

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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