The investments of Charter Ltd. include 10,000 Wallace Ltd. common shares purchased on January 10, 2015, for

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The investments of Charter Ltd. include 10,000 Wallace Ltd. common shares purchased on January 10, 2015, for $30 per share. These shares were classified as available-for-sale investments. As at the December 31, 2015, date, assume that the share price declined to $23 per share. As at the December 31, 2016, date, assume that the share price rose to $27 per share. The investment was held through December 31, 2016.
a. Journalize the entries to record the adjustment of the Wallace Ltd. investment to fair value on December 31, 2015, and December 31, 2016.
b. What is the balance of accumulated other comprehensive income for December 31, 2015, and December 31, 2016?
c. Where is accumulated other comprehensive income disclosed on the financial statements?
Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...

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