Bridgeport Corp. has the following portfolio of securities acquired for trading purposes and accounted for using the FV-NI model at September 30, 2017, the end of the company’s third quarter:

	Investment		Cost		Fair Value
	51,500 common shares of Yuen Inc.		$329,600		$206,000
	4,000 preferred shares of Monty Ltd.		152,000		160,000
	1,750 common shares of Oakwood Inc.		157,500		156,625

On October 8, 2017, the YAN shares were sold for $6.40 per share. On November 16, 2017, 3,000 common shares of Bell Corp. were purchased at $44.60 per share. Bridgeport pays a 1% commission on purchases and sales of all securities. At the end of the fourth quarter, on December 31, 2017, the fair values of the shares held were as follows: Monty $103,250; Patriot $118,750; and Oakwood $177,625. Bridgeport prepares financial statements every quarter. Assume Bridgeport follows IFRS 9 and does not recognize dividends and other investment income accounts separately.

Prepare the journal entries to record the sale, purchase, and adjusting entries related to the portfolio for the fourth quarter of 2017 .

HERE ARE THE SAMPLE LIST OF ACCOUNTS:

Allowance for Investment Impairment
Bond Investment at Amortized Cost
Cash
Dividends Receivable
Dividend Revenue
FV-NI Investments
FV-OCI Investments
Gain on Sale of Investments
GST Receivable
Interest Expense
Interest Income
Interest Payable
Interest Receivable
Investment in Associate
Investment Income or Loss
Loss on Discontinued Operations
Loss on Impairment
Loss on Sale of Investments
No Entry
Note Investment at Amortized Cost
Other Investments
Recovery of Loss from Impairment
Retained Earnings
Unrealized Gain or Loss - OCI

Transcribed Image Text:

Date Nov. 16 Account Titles and Explanation Debit Credit Date Nov. 16 Account Titles and Explanation Debit Credit

Answer rating: 100% (QA)

To prepare the journal entries for Bridgeport Corps trading portfolio for the fourth quarter of 2017 we must take into account the sale purchase and f... View the full answer