Answer all the subparts a,b,c On December 31, 2020, CFR Co. provided the following information as at December 31, 2020 about its investment accounts that it acquired for trading purposes: Carrying Amount Fair Value ABC Ltd. shares $15,000 $17,500 Ace Ventura Corp. shares 24,300 22,500 Shrek Ltd. Shares 75,000 80,200 During 2021, Ace Ventura Corp. shares were sold for $23,000 and 50% of the Shrek shares were sold for $42,000. At the end of 2021, the fair value of ABC shares was $19,200 and Shrek Ltd. was $41,000. CFR follows IFRS. Required: a. Prepare the adjusting entry for December 31, 2020, if any. b. Prepare the entry for the Ace Ventura and Shrek sales. c. Prepare the adjusting entry for December 31, 2021, if an

Answer all the subparts a,b,c On December 31, 2020, CFR Co. provided the following information as at December 31, 2020 about its investment accounts that it acquired for trading purposes: Carrying Amount Fair Value ABC Ltd. shares $15,000 $17,500 Ace Ventura Corp. shares 24,300 22,500 Shrek Ltd. Shares 75,000 80,200 During 2021, Ace Ventura Corp. shares were sold for $23,000 and 50% of the Shrek shares were sold for $42,000. At the end of 2021, the fair value of ABC shares was $19,200 and Shrek Ltd. was $41,000. CFR follows IFRS. Required: a. Prepare the adjusting entry for December 31, 2020, if any. b. Prepare the entry for the Ace Ventura and Shrek sales. c. Prepare the adjusting entry for December 31, 2021, if an

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 2MC: During 2021, Anthony Company purchased debt securities as a long-term investment and classified them...

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Urgently required answer to following: The following information related to stock investments of the Aladdin Corp at December 31, 2020 appears below. Name Cost Market Value A Corporation $35,000 $41,000 B Corporation 42,000 40,000 C Corporation 20,000 22,000 The balance in the fair value adjustment account prior to the 2020 year-end adjustment was a $2,000 debit balance. Instructions: 1. Determine the balance in the fair value adjustment account as of December 31, 2020 after adjustment 2. Prepare the adjusting journal entry at December 31, 2020 to record the unrealized gain or loss. 3. On April 15, 2021, A Corporation stock was sold for $43,000. Prepare the journal entry for the sale.
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At December 31, 2021, Perth Inc. has the following investments. Assume the FVTPL investments are held for trading. Security Co. A common shares Co. B preferred shares Co. C common shares Total Investment Category FVTPL FVTPL FVTOCI Carrying Value $19,000 11,500 21,000 $51,500 Fair Value $16,000 14,000 19,000 $49,000 (a) Prepare the adjusting entries required at December 31 to reflect the above information. (b) Show the financial statement presentation (balance sheet AND statements of income and comprehensive income) of the investments and related transactions and adjustments at December 31, 2021. (Ignore income tax.) BE SPECIFIC AS TO CLASSIFICATION AND ACCOUNT TITLE. (c) Assuming that on March 20, 2022, Perth sold Co. B preferred shares for $13,000, and sold Co. A common shares for $17,500. Prepare the journal entries to record these transactions.
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