Question

On 1 November 20X8, Porter Company acquired the fol-lowing FVTPL investments:
• Minto Corporation— 2,000 common shares at $ 15 cash per share
• Pugwash Corporation— 700 preferred shares at $ 25 cash per share
The annual reporting period ends 31 December. Quoted fair values on 31 December 20X8 were as follows:
• Minto Corporation common, $ 12
• Pugwash Corporation preferred, $ 27
The following information relates to 20X9:
2 March Received cash dividends per share as follows: Minto Corporation, $ 2.10; and Pugwash Corporation, $ 1.25.
1 October Sold 200 shares of Pugwash Corporation preferred at $ 29 per share.
31 December Fair values were as follows: Minto common, $ 23, and Pugwash preferred, $ 26.

Required:
1. Give the entry for Porter Company to record the purchase of the securities.
2. Give the adjusting entries needed at the end of 20X8.
3. List the amount that would be reported in 20X8 earnings and the asset amounts on the statement of financial position.
4. Give all entries required in 20X9.
5. List the amount that would be reported in 20X9 earnings and the asset amounts on the statement of financial position.
6. Repeat requirement (5), assuming that both the investments were originally designated FVTOCI investments. Include the balance of the AOCI equity reserve for holding gains for the SFP amounts. The holding gain amounts are not reclassified after realization.



$1.99
Sales2
Views74
Comments0
  • CreatedFebruary 17, 2015
  • Files Included
Post your question
5000