On October 1, Qilan 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 1.044 to yield Qilan 6% and pay interest annually each October 1. Qilan has a December 31 year end, and at this date, the bonds' fair value was $1,055. Assuming Qilan applies IFRS, prepare Qilan's journal entries for (a) the purchase of the investment, (b) the December 31 interest accrual, and (c) the year - end fair value adjustmen Assuming Qilan applies ASPE, uses the effective interest method, and reports interest income separately, prepare Qilan's journal entries for (d) the December 31 interest accrual, and (e) the year-end fair value adjustment. Round amounts to two

On October 1, Qilan 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 1.044 to yield Qilan 6% and pay interest annually each October 1. Qilan has a December 31 year end, and at this date, the bonds' fair value was $1,055. Assuming Qilan applies IFRS, prepare Qilan's journal entries for (a) the purchase of the investment, (b) the December 31 interest accrual, and (c) the year - end fair value adjustmen Assuming Qilan applies ASPE, uses the effective interest method, and reports interest income separately, prepare Qilan's journal entries for (d) the December 31 interest accrual, and (e) the year-end fair value adjustment. Round amounts to two

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter13: Long-term Liabilities

Section: Chapter Questions

Problem 5PA: Volunteer Inc. issued bonds with a $500,000 face value, 10% interest rate, and a 4-year term on July...

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