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  • Gerry Company Required1 Required5 2020 Required2

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    Anonn
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    Gerry Company held a financial asset measured at fair value through profit or loss (FVPL) in 2020. It recognized $240,000 in interest income and an unrealized loss of $40,000. In 2021, the asset was reclassified to be measured at fair value through other comprehensive income (FVOCI). It recognized $349,000 in interest income through profit or loss and an unrealized loss of $174,000 through other comprehensive income.

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    Intermediate Accounting1

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    21-6

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    Gerry Company held a financial asset measured at fair value through profit or loss (FVPL) in 2020. It recognized $240,000 in interest income and an unrealized loss of $40,000. In 2021, the asset was reclassified to be measured at fair value through other comprehensive income (FVOCI). It recognized $349,000 in interest income through profit or loss and an unrealized loss of $174,000 through other comprehensive income.

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    © All Rights Reserved
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    78 views2 pages

    Gerry Company Required1 Required5 2020 Required2

    Uploaded by

    Anonn
    Gerry Company held a financial asset measured at fair value through profit or loss (FVPL) in 2020. It recognized $240,000 in interest income and an unrealized loss of $40,000. In 2021, the asset was reclassified to be measured at fair value through other comprehensive income (FVOCI). It recognized $349,000 in interest income through profit or loss and an unrealized loss of $174,000 through other comprehensive income.

    Copyright:

    © All Rights Reserved
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    of 2

    Gerry Company

    Required1 Required5
    Interest income for 2020 (4,000,000 x 6%) 240,000 2020
    Jan-01
    Required2
    Fair value - December 31, 2020 3,490,000
    Carrying amount - December 31, 2020 -3,530,000 Dec-31
    Unrealized loss included in profit or loss for 2020 -40,000

    Required3 31
    Interest income for 2020 (3,490,000 x 10%) 349,000

    Required4 2021
    Carrying amount - January 1, 2021 3,490,000 Jan-01
    Discount amortization:
    Interest income (3,490,000 x 109%) 349,000
    Interest received (4,000,000 x 6%) -240,000 109,000 Dec-31
    Carrying amount - December 31, 2021 3,599,000

    Fair value - December 31, 2021 3,425,000 31


    Carrying amount –December 31, 2021 -3,599,000
    Unrealized loss in OCI for 2021 -174,000
    31
    Required5 Debit Credit

    Financial asset - FVPL 3,530,000


    Cash 3,530,000

    Cash 240,000
    Interest income 240,000

    Unrealized loss PL 40,000


    Financial asset - FVPL 40,000

    Financial asset FVOCI 3,490,000


    Financial asset - EVPL 3,490,000

    Cash 240,000
    Interest income 240,000

    Financial asset -FVOCI 109,000


    Interest income 109,000

    Unrealized loss - OCI 174,000


    Financial asset - FVOCI 174,000

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