Gethsemane Whole Co. (GWC), which uses IFRS, had the following events and transactions for its year...

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Gethsemane Whole Co. (GWC), which uses IFRS, had the following events and transactions for its year ended December 31, 2020: March 1 - Purchased 1,000 common shares of Telus Corp. for $30,000 plus $4,000 of commissions. GWC has elected to account for this equity investment using the OCI option under IFRS 9. . September 30- Received a dividend of $0.20 per share on the Telus 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, 2030 and the bonds' yield is 14% per annum. GWC intends to hold and is capable of holding these bonds until maturity. ... December 31 - The Telus 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 2020, including adjusting journal entries at year-end. Date all of your entries. (9 Marks) B. Compute net income and comprehensive income, respectively, for the year ended December 31, 2020. Ignore taxes. (3 Marks) C. If GWC sold 600 of the Telus shares on March 31, 2021 for $33 per share minus $200 of commissions, what journal entry(s) should be recorded? (3 Marks) Gethsemane Whole Co. (GWC), which uses IFRS, had the following events and transactions for its year ended December 31, 2020: March 1 - Purchased 1,000 common shares of Telus Corp. for $30,000 plus $4,000 of commissions. GWC has elected to account for this equity investment using the OCI option under IFRS 9. . September 30- Received a dividend of $0.20 per share on the Telus 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, 2030 and the bonds' yield is 14% per annum. GWC intends to hold and is capable of holding these bonds until maturity. ... December 31 - The Telus 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 2020, including adjusting journal entries at year-end. Date all of your entries. (9 Marks) B. Compute net income and comprehensive income, respectively, for the year ended December 31, 2020. Ignore taxes. (3 Marks) C. If GWC sold 600 of the Telus shares on March 31, 2021 for $33 per share minus $200 of commissions, what journal entry(s) should be recorded? (3 Marks)

Answer rating: 100% (QA)

Journal entries 1 Purchase ac dr 34000 To bank ac 30000 To co... View the full answer