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The following Givarz Corporation transactions are for bonds that were purchased as a held for trading investment for the year ended December 3, 2018 Feb 1 Purchased $200000 of Leslye Corporation

The following Givarz Corporation transactions are for bonds that were purchased as a held for trading investment for the year ended December 31, 2018: Feb. 1 Purchased $200,000 of Leslye Corporation 3% bonds at 104 (this means 104% of maturity value). Interest is received semi-annually on August 1 and February 1. The bonds mature on February 1, 2020. Aug. 1 Received interest on Leslye bonds. 2 Sold $80,000 of the Leslye bonds at 102. Dec. 31 Accrued interest on the remaining bonds. 31 The fair value of the remaining bonds was 100 on this date. Instructions (a) Record the above transactions, using the fair value through profit or loss model, including required adjusting entries (if any). (b) Show how the investment would be presented on the statement of financial position at December 31, 2018. (c) Determine the balance in each of the income statement accounts that are affected in the transactions above and indicate how they would be presented on the income statement for the year ended December 31, 2018.

Apr 11 2020 View more View Less

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