Augusta Pacific Inc. (API), which uses IFRS, had the following events and transactions for its year ended December 31, 2021: • March 1 - Purchased 1,000 common shares of Rogers Corp. (Rogers) for $32,000 plus $6,000 of commissions. API has elected to account for this equity investment using the irrevocable election OCI option under IFS 9. • September 30 - Received a dividend of $0.25 per share on the Rogers shares. • November 1 - Purchased bonds with a face value of $1,000,000 and a coupon rate of 12% per annum payable semi-annually on April 30 and October 31. The maturity date of the bonds is October 31, 2031, and the bonds' yield is 14% per annum. API intends to hold and is capable of holding these bonds until maturity. • December 31 - The Rogers shares have a fair value of $29 per share and the bonds are trading at 102 (i.e. 102% of the face value). 

REQUIRED

A. Prepare all of the relevant journal entries for 2021, including adjusting journal entries at year-end. Date all of your entries. 

B. Compute net income and comprehensive income, respectively, for the year ended December 31, 2021. Ignore taxes. 

C. If API sold 600 of the Rogers shares on March 31, 2022, for $32 per share minus $300 of commissions, what journal entry(s) should be recorded? (3 Marks) Explanations are not required.

Answer rating: 100% (QA)

Answer 13 Date Account Titles Explanation Debit Credit 14 2021 01Mar investment in Shares 320000000 ... View the full answer