14, please answer the following question Swifty Corporation owns corporate bonds at December 31, 2023, accounted for using the amortized cost model. These bonds have apar value of $896,000 and an amortized cost of $883,000. After an impairment review was triggered, Swifty determined that thediscounted impaired cash flows are $826,000 using the current market rate of interest, but are $822,000 using the market rate whenthe bonds were first acquired. The company follows a policy of directly reducing the carrying amount of any impaired assets. Assumethat 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. 31,2023Account Titles and ExplanationeTextbook and MediaLoss on ImpairmentList of AccountsBond Investment at Amortized CostDateYour answer is correct.Dec. 31,2024Account Titles and ExplanationBond Investment at Amortized CostDebitAssuming 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 theamount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Listdebit entry before credit entry.)Recovery of Loss from Impairment57000DebitCredit2050057000Attempts: 1 of 3 usedCredit20500 Assuming that Swifty applies IFRS and that there has been a significant increase in credit risk, prepare the journal entry related tothe impairment at December 31, 2023. (Credit account titles are automatically indented when the amount is entered. Do not indentmanually. 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 ExplanationDec. 31,2023DebitCredit

Date Journal Entry Debit Credit 31-Dec-23 Loss on Impairment ($883,000 – $826,000) $57,000…

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.

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.

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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