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Questions and Answers
When recording the impairment of a loan, what is the correct debit entry?
When recording the impairment of a loan, what is the correct debit entry?
The Profit and Loss Statement (PL) is a quarterly report.
The Profit and Loss Statement (PL) is a quarterly report.
False
What is the purpose of the Monthly Investment Statement?
What is the purpose of the Monthly Investment Statement?
To record the fair value adjustment of bonds
The Net Tangible Assets (NTA) is calculated during the ___________ tasks.
The Net Tangible Assets (NTA) is calculated during the ___________ tasks.
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What is the purpose of the Goods and Services Tax (GST) report?
What is the purpose of the Goods and Services Tax (GST) report?
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Match the following reports with their frequency:
Match the following reports with their frequency:
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The reviewer provides comments via email during the internal review process.
The reviewer provides comments via email during the internal review process.
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What is the purpose of the Coupon Interest Receivable account?
What is the purpose of the Coupon Interest Receivable account?
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What is the revision number of the Cornerstone Bond Fund document?
What is the revision number of the Cornerstone Bond Fund document?
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The document was prepared by Isac Lin.
The document was prepared by Isac Lin.
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What is the name of the fund mentioned in the document?
What is the name of the fund mentioned in the document?
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The document is dated _________________.
The document is dated _________________.
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Match the following with the correct step in the procedures:
Match the following with the correct step in the procedures:
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Who reviewed the document?
Who reviewed the document?
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The document has a revision date specified.
The document has a revision date specified.
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What is the title of the section that comes after the "Flowchart" section in the Table of Contents?
What is the title of the section that comes after the "Flowchart" section in the Table of Contents?
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What is the minimum fee for the Trustee Fee (RITC 55%)?
What is the minimum fee for the Trustee Fee (RITC 55%)?
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The Accrued charges include only Trustee Fee and Registry Fees.
The Accrued charges include only Trustee Fee and Registry Fees.
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What is the purpose of the Admin and Accounting Fee?
What is the purpose of the Admin and Accounting Fee?
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The application of GST and determination of RITC is part of the general guidelines for the maintenance of accurate and comprehensive records for ____________ purposes.
The application of GST and determination of RITC is part of the general guidelines for the maintenance of accurate and comprehensive records for ____________ purposes.
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Match the following accounts with their corresponding debit and credit actions:
Match the following accounts with their corresponding debit and credit actions:
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What is the purpose of the Loan Interest Receivable account?
What is the purpose of the Loan Interest Receivable account?
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The calculation of fees is based on Net Asset Value.
The calculation of fees is based on Net Asset Value.
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What is the frequency of recording charges and updating of payments and balances?
What is the frequency of recording charges and updating of payments and balances?
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Study Notes
Accounting Procedures for Cornerstone Bond Fund
####Recording Interest Receivable
- Debit: Loan Interest Receivable account
- Credit: Loan Interest Received account
- Recognize interest income
####Impairment of Interest Receivable
- Debit: Impairment Loss account for the impaired amount
- Credit: Provision for Impairment Loss account
- Record impairment losses on interest receivable
Bond Interest
####Recording Coupon Interest Receivable
- Debit: Coupon Interest Receivable account
- Credit: Interest Received - Bond account
####Recording Amortization Expenses
- Debit: Amortization Expenses account
- Credit: Investment Portfolio - Bond account
Fair Value Adjustment of Bond
- Record fair value adjustment based on Monthly Investment Statement
Reports
####Monthly Tasks
- Compile Profit and Loss Statement (PL), Balance Sheet (BS), Cash Flow Statement (CF), Trial Balance (TB), and General Ledger (GL)
- Calculate Net Tangible Assets (NTA)
####Quarterly Tasks
- Complete Goods and Services Tax (GST) and Business Activity Statements (BAS)
####Yearly Tasks
- Calculate Short-Term Incentives (STI) for review by tax team
- Prepare annual financial statements
Accrued Charges
- Include Trustee Fee, Registry Fees, Audit Fee, and Admin and Accounting Fee
- Calculate fees based on Gross Asset Value
- Apply GST and determine RITC
- Identify Non-Claimable GST
- Record charges and update payments and balances
- Maintain accurate and comprehensive records for audit and review purposes
- Verify calculations and entries for accuracy
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Description
This quiz assesses your understanding of accounting entries for bond interest receivable, amortization expenses, and impairment losses. Test your knowledge of journal entries and accounts affected.
