Reference no: EM133002339

Question - The following information relates to the 2020 debt and equity investment transactions of Whispering Winds Ltd., a publicly accountable Canadian corporation. All of the investments were acquired for trading purposes and accounted for using the FV-NI model, with all transaction costs being expensed. No investments were held at December 31, 2019, and the company prepares financial statements only annually, each December 31, following IFRS.

- On February 1, the company purchased Williams Corp. 12% bonds, at par value for $590,000, plus accrued interest. Interest is payable April 1 and October 1.

- On April 1, semi-annual interest was received on the Williams bonds.

- On July 1, 9% bonds of Saint Inc. were purchased. These bonds, with a par value of $208,000, were purchased at par plus accrued interest. Interest dates are June 1 and December 1.

- On August 12, 3,700 shares of Scotia Corp. were acquired at a cost of $59.00 per share. A 1% commission was paid.

- On September 1, Williams Corp. bonds with a par value of $118,000 were sold at 104.9 plus accrued interest.

- On September 28, a dividend of $0.59 per share was received on the Scotia Corp. shares.

- On October 1, semi-annual interest was received on the remaining Williams Corp. bonds.

- On December 1, semi-annual interest was received on the Saint Inc. bonds.

- On December 28, a dividend of $0.61 per share was received on the Scotia Corp. shares.

- On December 31, the following fair values were determined: Williams Corp. bonds 102.15; Saint Inc. bonds 97; and Scotia Corp. shares $62.10.

Required - Prepare all 2020 journal entries necessary to properly account for the investment in the Williams Corp. bonds.