Are you stressed by poor grades and tight deadlines? We have your back. We can do this or a different assignment for you at an affordable price. Use customdissertations.org writing services to score better and meet your deadlines.

Order a Similar Paper Order a Different Paper

Please see attached file, class is intermediate financial reporting 1.

1. Walker Inc. began operations on January 1, 20X5. The company reports its financial statements in accordance with IFRS. On December 31, 20X5, the company owned the following investments:

See, attached file for chart.

What is the total income from investments that Walker Inc. reported in the calculation of net income before taxes in the statement of comprehensive income for the year ended December 31, 20X5?

a) $21,500

b) $22,500

c) $31,500

d) $35,500

2. On February 1, 20X4, Hathaway Inc. purchased 3% of the common shares of Franco Corporation for $87,000. On December 31, 20X4, the fair market value of Franco’s shares owned by Hathaway had increased to $100,000. Hathaway follows IFRS and accounts for its investment in these shares under the FVPL method. What journal entry should Hathaway make at December 31, 20X4, for this investment?

a) No entry; do not record any gains or losses until the investment is sold.

b) Debit “investment in financial assets at FVPL” for $13,000.

c) Debit “fair value adjustment” for $13,000.

d) Credit “OCI — fair value adjustment” for $13,000.

3. Carlton Corporation’s investment strategy focuses on debt instruments such as bonds, mortgages and loans. It also has equity investments, but its strategy for these investments is to hold them for long-term purposes. All investments held by the company have been classified as FVOCI. As at December 31, 20X4, the net carrying amount of the investments was $100,000 and the fair value of the investments was $108,600. What journal entry is required to be recorded by Carlton Corporation at December 31, 20X4, to account for these investments?

a) Debit “OCI — holding gain on investment in financial assets at FVOCI” for $8,600

b) Debit “investment in financial asset at amortized cost” for $8,600

c) Credit “investment in financial asset at FVOCI” for $8,600

d) Credit “OCI — holding gain on investment in financial assets at FVOCI” for $8,600

Use the following information to answer questions 4 and 5.

On January 1, 20X4, Woodwork Inc. purchased a $300,000, five-year, 4% interest rate bond. The bond pays interest semi-annually on June 30 and December 31. The market rate at the time of the purchase was 5%, which resulted in Woodwork paying $286,872 for the bonds. Woodwork intends to hold onto the bond to collect contractual cash flows; therefore, it has decided to use the amortized cost method to account for the bonds.

4. Which of the following forms part of the journal entry that Woodwork should record to account for the receipt of the first interest payment on this bond on June 30, 20X4?

a) Debit to cash for $7,500

b) Credit to interest revenue for $7,500

c) Credit to interest revenue for $7,172

d) Credit to interest revenue for $6,000

5. What amount should Woodwork record to the investment at amortized cost account for the receipt of its first interest payment on June 30, 20X4?

a) $321

b) $1,179

c) $6,000

d) $7,179

We offer CUSTOM-WRITTEN, CONFIDENTIAL, ORIGINAL, and PRIVATE writing services. Kindly click on the ORDER NOW button to receive an A++ paper from our masters- and PhD writers.

Get a 10% discount on your order using the following coupon code SAVE10

Order a Similar Paper Order a Different Paper