During Y2, Aylmer Inc. purchased the following investments for cash but incorrectly recorded them as Other...
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During Y2, Aylmer Inc. purchased the following investments for cash but incorrectly recorded them as "Other Investments" on the balance sheet. Aylmer follows IFRS. January 1, Y2 March 31, Y2 April 30, Y2 REQUIRED Purchased 23,000 of 100,000 shares outstanding of London Inc. Belmont Limited, 10,000 common shares Lyons Inc, 5% bonds $100,000 bonds Interest is paid April 30 and October 31 2 Prepare the entry to accrued interest income at December 31. 3 Prepare necessary revluation entries given the following fair values: $ Belmont Limited Lyons Inc. $ $ 1 Prepare the entry to correct the above amounts from "Other Investments" to the appropriate accounts assuming that the common shares are classified as FV-NI, the investment in London represents significant influence and the bonds are classified as FV-OCI. 115,312 $ $ $ $ 4 Prepare any required entries given the following Y2 information for London Inc: Net income for the year 100,000 dividends paid Number of employees 26 5 Report the appropriate balances on the December 31, Y2 balance sheet for the above information. 6 After interest was received, the Lyons Inc bonds were sold on April 30, Y3 for $124,500. Prepare the appropriate entry(ies). During Y2, Aylmer Inc. purchased the following investments for cash but incorrectly recorded them as "Other Investments" on the balance sheet. Aylmer follows IFRS. January 1, Y2 March 31, Y2 April 30, Y2 REQUIRED Purchased 23,000 of 100,000 shares outstanding of London Inc. Belmont Limited, 10,000 common shares Lyons Inc, 5% bonds $100,000 bonds Interest is paid April 30 and October 31 2 Prepare the entry to accrued interest income at December 31. 3 Prepare necessary revluation entries given the following fair values: $ Belmont Limited Lyons Inc. $ $ 1 Prepare the entry to correct the above amounts from "Other Investments" to the appropriate accounts assuming that the common shares are classified as FV-NI, the investment in London represents significant influence and the bonds are classified as FV-OCI. 115,312 $ $ $ $ 4 Prepare any required entries given the following Y2 information for London Inc: Net income for the year 100,000 dividends paid Number of employees 26 5 Report the appropriate balances on the December 31, Y2 balance sheet for the above information. 6 After interest was received, the Lyons Inc bonds were sold on April 30, Y3 for $124,500. Prepare the appropriate entry(ies).
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1 Entry to correct the investments January 1 Y2 Debit Investment in London Inc 230000 Credit Other I... View the full answer
Related Book For
Accounting
ISBN: 978-0176509743
Volume 1, 2nd canadian Edition
Authors: Carl warren, James Reeve, Jonathen Duchac, Sheila Elworthy,
Posted Date:
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