Dow-Smith Ltd. bought 3,000 common shares of Shoppers Drug Mart at $50.00 common shares of Bank of

Question:

Dow-Smith Ltd. bought 3,000 common shares of Shoppers Drug Mart at $50.00 common shares of Bank of Montreal (BMO) at $42.50, and 1,400 common shares of EnCana at $93.36, all as non-strategic investments. At December 31, TSX Online reports Shoppers' shares at $48.05, BMO's shares at $31.25, and EnCana's shares at $56.96. The company reports changes in fair value through other comprehensive income
Requirements
1. Determine the cost and the fair value of the long-term investment at December 31.
2. Record Dow-Smith's adjusting entry at December 31.
3. What would Dow-Smith report on its income statement and for the information given? Make the necessary disclosures. Ignore income tax.
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... Portfolio
A portfolio is a grouping of financial assets such as stocks, bonds, commodities, currencies and cash equivalents, as well as their fund counterparts, including mutual, exchange-traded and closed funds. A portfolio can also consist of non-publicly...