Bombier Inc's non-strategic investment portfolio at December 31, 2020, consisted of the following: Debt & Equity...

 

 

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Bombier Inc's non-strategic investment portfolio at December 31, 2020, consisted of the following: Debt & Equity Investments Cost Fair Value $138,000 $124,200 $265,500 $145,000 $118,900 $261,000 50,000 Cumber Corporation common shares 18,000 Olds Inc. common shares 45,000 Waters Corp. common shares "The fair value adjustments were recorded on December 31, 2020. Bombier Inc. had no other debt and equity investments at December 31, 2020, other than those shown above. During 2021, Bombier engaged in the following transactions: Sold 45,000 of the Cumber Corporation shares for $2.48 per share Purchased 280,000 common shares of King Corp. for $540,000. The shares represent a 38% ownership in King Corp. Received dividends of $0.45 per share from King Corp. Feb 2 Jun 27 Jun 30 Sold the remaining Cumber Corporation shares for $14,680 Purchased a 15% ownership in Amber Corp. by acquiring 45,000 common shares at $14.00 Jul 3 Aug 7 per share. Bombier Inc. plans to sell these shares in six to nine months. Dec 30 Sold 25,000 shares of Waters Corp. for $5.40 per share Dec 31 King Corp. announced a loss of $40,000 for the year. Required: Prepare journal entries for the 2021 transactions as detaled above Short Answer Toolbar navigation BIUSE Bombier Inc's non-strategic investment portfolio at December 31, 2020, consisted of the following: Debt & Equity Investments Cost Fair Value $138,000 $124,200 $265,500 $145,000 $118,900 $261,000 50,000 Cumber Corporation common shares 18,000 Olds Inc. common shares 45,000 Waters Corp. common shares "The fair value adjustments were recorded on December 31, 2020. Bombier Inc. had no other debt and equity investments at December 31, 2020, other than those shown above. During 2021, Bombier engaged in the following transactions: Sold 45,000 of the Cumber Corporation shares for $2.48 per share Purchased 280,000 common shares of King Corp. for $540,000. The shares represent a 38% ownership in King Corp. Received dividends of $0.45 per share from King Corp. Feb 2 Jun 27 Jun 30 Sold the remaining Cumber Corporation shares for $14,680 Purchased a 15% ownership in Amber Corp. by acquiring 45,000 common shares at $14.00 Jul 3 Aug 7 per share. Bombier Inc. plans to sell these shares in six to nine months. Dec 30 Sold 25,000 shares of Waters Corp. for $5.40 per share Dec 31 King Corp. announced a loss of $40,000 for the year. Required: Prepare journal entries for the 2021 transactions as detaled above Short Answer Toolbar navigation BIUSE

Answer rating: 100% (QA)

Feb 2 2021 Cash Dr 111600 Loss on Investment of Cumber Corporation Dr 18900 To Investment in common ... View the full answer