Novak Corporation, a Canadian-based international company that follows IFRS, has the following securities in its portfolio...

     

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Novak Corporation, a Canadian-based international company that follows IFRS, has the following securities in its portfolio of investments acquired for trading purposes and accounted for using the FV-NI method on December 31, 2019: Investments 1,700 shares of David Jones Inc., common 5,700 shares of Hearn Corp., common 440 shares of Alessandro Inc., preferred Mar. 1 Apr. 1 Carrying Amount (before adjustment) In 2020, Novak completed the following securities transactions: $89,400 205,200 66,000 $360,600 Investments 5,700 shares of Hearn Corp., common 700 shares of Oberto Ltd., common 440 shares of Alessandro Inc., preferred Sold the 1,700 shares of David Jones Inc. common at $45 per share, less fees of $500. Bought 700 shares of Oberto Ltd. common at $80 per share, plus fees of $1,000. Fair Value $84,600 198,000 68,300 $350,900 Novak Corporation's portfolio of trading securities appeared as follows on December 31, 2020: Original Cost $205,200 56,000 66,000 $327,200 Fair Value $198,000 53,800 63,400 $315,200 Assume that the company does not recognize and report dividends and other components of investment gains and losses separately. Prepare the Novak Corporation general journal entry to record the adjusting entry for December 31, 2019. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter o for the amounts.) Account Titles and Explanation eTextbook and Media List of Accounts Debit Credit Prepare the Novak Corporation general journal entry to record the sale of the David Jones Inc. shares. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter for the amounts) Account Titles and Explanation eTextbook and Media List of Accounts Debit Credit Prepare the Novak Corporation general journal entry to record the purchase of the Oberto Ltd. shares. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Account Titles and Explanation eTextbook and Media List of Accounts Debit Credit Prepare the Novak Corporation general journal entry to record the adjusting entry for December 31, 2020. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Account Titles and Explanation eTextbook and Media List of Accounts Debit Credit Novak Corporation, a Canadian-based international company that follows IFRS, has the following securities in its portfolio of investments acquired for trading purposes and accounted for using the FV-NI method on December 31, 2019: Investments 1,700 shares of David Jones Inc., common 5,700 shares of Hearn Corp., common 440 shares of Alessandro Inc., preferred Mar. 1 Apr. 1 Carrying Amount (before adjustment) In 2020, Novak completed the following securities transactions: $89,400 205,200 66,000 $360,600 Investments 5,700 shares of Hearn Corp., common 700 shares of Oberto Ltd., common 440 shares of Alessandro Inc., preferred Sold the 1,700 shares of David Jones Inc. common at $45 per share, less fees of $500. Bought 700 shares of Oberto Ltd. common at $80 per share, plus fees of $1,000. Fair Value $84,600 198,000 68,300 $350,900 Novak Corporation's portfolio of trading securities appeared as follows on December 31, 2020: Original Cost $205,200 56,000 66,000 $327,200 Fair Value $198,000 53,800 63,400 $315,200 Assume that the company does not recognize and report dividends and other components of investment gains and losses separately. Prepare the Novak Corporation general journal entry to record the adjusting entry for December 31, 2019. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter o for the amounts.) Account Titles and Explanation eTextbook and Media List of Accounts Debit Credit Prepare the Novak Corporation general journal entry to record the sale of the David Jones Inc. shares. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter for the amounts) Account Titles and Explanation eTextbook and Media List of Accounts Debit Credit Prepare the Novak Corporation general journal entry to record the purchase of the Oberto Ltd. shares. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Account Titles and Explanation eTextbook and Media List of Accounts Debit Credit Prepare the Novak Corporation general journal entry to record the adjusting entry for December 31, 2020. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Account Titles and Explanation eTextbook and Media List of Accounts Debit Credit

Answer rating: 100% (QA)

Date Account Title and Explanation 31Dec19 Investment income or l... View the full answer