Question

Fernandez Corp. invested its excess cash in equity investments during 2010. The business model for these investments is to profit from trading on price changes.

Instructions
(a) As of December 31, 2010, the equity investment portfolio consisted of the following.


What should be reported on Fernandez’s December 31, 2010, statement of financial position relative to these investments? What should be reported on Fernandez’s 2010 income statement? During the year 2011, Fernandez Corp. sold 2,000 shares of Poley Corp. for €38,200 and purchased 2,000 more shares of Lindsay Jones, Inc. and 1,000 shares of Duff Company.
(b) On December 31, 2011, Fernandez’s equity investment portfolio consisted of the following.


What should be reported on Fernandez’s December 31, 2011, statement of financial position? What should be reported on Fernandez’s 2011 income statement?
(c) On December 31, 2012, Fernandez’s equity investment portfolio consisted of the following.


During the year 2012, Fernandez Corp. sold 3,000 shares of Lindsay Jones, Inc. for €39,900 and 500 shares of Duff Company at a loss of €2,700. What should be reported on the face of Fernandez’s December 31, 2012, statement of financial position? What should be reported on Fernandez’s 2012 incomestatement?


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  • CreatedJune 17, 2013
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