Recall 3 year-old Manny, at the beginning of the chapter, who has & a seizure disorder. He receives his care in a mobile van sent to his community by the….
Prepare a partial classified balance sheet and income statement for FacePlant, as at December 31, 2014.
On September 30, 2014, FacePlant Inc. purchased a $225,000 face-value bond for par plus accrued interest. The bond pays interest each October 31 at 4%. Management’s intent is to hold for trading purposes. On December 31, 2014, the company year-end, the fair value published for bonds of similar characteristics and risk was 102.6. On March 1, 2015, FacePlant sold the bonds for 102.8 plus accrued interest. FacePlant follows IFRS
a. Prepare all the related journal entries for this investment. The company wants to report interest income separately from other gains and losses.
b. Prepare a partial classified balance sheet and income statement for FacePlant, as at December 31, 2014.
c. How would the answer to parts (a) and (b) change if FacePlant followed ASPE?
d. What kinds of returns did this investment generate? (Hint: Consider all sources, such as interest income and gain/loss on sale of the investment.)