Please do not give image format On January 1, 2019, Dual Purpose Inc. purchased $2,000,000 par value, 6% bond with a maturity date of December 31,2021. The bond pays annually on December 31. The bond was purchased to yield 7%. Dual follows IFRS and it's year isDecember 31.RequiredPrepare all the journal entries for 2019, 2020, and 2021 assuming the market value of the bond is 1,950,000 and2,010,000 repsectively for 2019 and 2020 for the following three classifications:a) Amortized Costb) FVPLc) FVOCINote: Dual Purpose Inc. only prepares financial statements at their year end.

Fair Value through Profit or Loss (FVPL): Financial assets are measured at fair value, with changes…

Answered: Prepare all the journal entries for…

Prepare all the journal entries for 2019, 2020, and 2021 assuming the market value of the bond is 1,950,000 and 2,010,000 repsectively for 2019 and 2020 for the following three classifications:

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter13: Investments And Long-term Receivables

Section: Chapter Questions

Problem 1RE

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Question

Please do not give image format

On January 1, 2019, Dual Purpose Inc. purchased $2,000,000 par value, 6% bond with a maturity date of December 31,
2021. The bond pays annually on December 31. The bond was purchased to yield 7%. Dual follows IFRS and it's year is
December 31.
Required
Prepare all the journal entries for 2019, 2020, and 2021 assuming the market value of the bond is 1,950,000 and
2,010,000 repsectively for 2019 and 2020 for the following three classifications:
a) Amortized Cost
b) FVPL
c) FVOCI
Note: Dual Purpose Inc. only prepares financial statements at their year end.

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