Brief Exercise 9-10 On October 1, Bramble Ltd. purchased 8% bonds with a face value of $1,000 for trading purposes, accounting for the investment at FV-NI. The bonds were priced at 1.022 to yield Bramble 5%, and pay interest annually each October 1. Bramble has a December 31 year end, and at this date, the bonds fair value was $1,045. Assume Bramble applies IFRS.

a. Prepare Brambles journal entry for the purchase of the investment.

b. Prepare Brambles journal entry for the December 31 interest accrual.

c. Prepare Brambles journal entry for the year-end fair value adjustment.

d. Assume Bramble applies ASPE, uses the effective interest method, and follows a policy of reporting interest income separately, prepare Brambles journal entry for the December 31 interest accrual.

e. Assuming Bramble applies ASPE, uses the effective interest method, and follows a policy of reporting interest income separately, prepare Brambles journal entry for the year-end fair value adjustment.

Brief Exercise 9-10 On October 1, Bramble Ltd. purchased 8% bonds with a face value of $1,000 for trading purposes, accounting for the investment at FV-NI. The bonds were priced at 1.022 to yield Bramble 5%, and pay interest annually each October 1. Bramble has a December 31 year end, and at this date, the bonds' fair value was $1,045. Assume Bramble applies IFRS. Prepare Bramble's journal entry for the purchase of the investment. (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.) Account Titles and Explanation Debit Credit FV-NI Investments 1000 Cash 1000 SHOW LIST OF ACCOUNTS LINK TO TEXT Prepare Bramble's journal entry for the December 31 interest accrual. (Round answers to 2 decimal places, e.g. 52.75. 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.) Account Titles and Explanation Debit Credit Interest Payable Interest Income Cash Prepare Bramble's journal entry for the year-end fair value adjustment. (Round answers to 2 decimal places, e.g. 52.75. 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.) Account Titles and Explanation Debit Credit SHOW LIST OF ACCOUNTS LINK TO TEXT Assume Bramble applies ASPE, uses the effective interest method, and follows a policy of reporting interest income separately, prepare Bramble's journal entry for the December 31 interest accrual. (Round answers to 2 decimal places, e.g. 52.75. 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.) Account Titles and Explanation Debit Credit SHOW LIST OF ACCOUNTS LINK TO TEXT Assuming Bramble applies ASPE, uses the effective interest method, and follows a policy of reporting interest income separately, prepare Bramble's journal entry for the year-end fair value adjustment. (Round answers to 2 decimal places, e.g. 52.75. 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.) Account Titles and Explanation Debit Credit