Runner Ltd. is an investment management firm that had, at the beginning of the current year...

Transcribed Image Text:

Runner Ltd. is an investment management firm that had, at the beginning of the current year on January 1, 2021, a balance of $124,000 in its Trading Investments account (using the fair value through profit or loss model) and a balance of $506,000 in its Investment in Associates account (using the equity method). At the end of the year, these account balances were $137,000 and $610,000, respectively. During the year, dividends of $55,000 were received from associates while $11,000 was received from trading investments. In addition, the company purchased investments in associates and trading investments for cash of $119,000 and $51,000, respectively. Also, during 2021, the company received $49,000 when it sold trading investments that it carried at $27,000. Prove the ending balances in these accounts at December 31 by listing the beginning balance and all transactions for the year. (Enter negative amounts using either a negative sign preceding the number e.g. -2,945 or parentheses e.g. (2,945).) Trading Investment Investments in Associates Account Balance, beginning of year $124.000 $506,000 Balance, end of year $137.000 $610,000 Runner Ltd. is an investment management firm that had, at the beginning of the current year on January 1, 2021, a balance of $124,000 in its Trading Investments account (using the fair value through profit or loss model) and a balance of $506,000 in its Investment in Associates account (using the equity method). At the end of the year, these account balances were $137,000 and $610,000, respectively. During the year, dividends of $55,000 were received from associates while $11,000 was received from trading investments. In addition, the company purchased investments in associates and trading investments for cash of $119,000 and $51,000, respectively. Also, during 2021, the company received $49,000 when it sold trading investments that it carried at $27,000. Prove the ending balances in these accounts at December 31 by listing the beginning balance and all transactions for the year. (Enter negative amounts using either a negative sign preceding the number e.g. -2,945 or parentheses e.g. (2,945).) Trading Investment Investments in Associates Account Balance, beginning of year $124.000 $506,000 Balance, end of year $137.000 $610,000

Answer rating: 100% (QA)

Amount in Account Held for trading Investment Investment in AssociatesEquit... View the full answer