Gloria Co has the following trading investment portfolio on December 31, 2019. Investments (Trading) 1,500 ordinary...

 

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Gloria Co has the following trading investment portfolio on December 31, 2019. Investments (Trading) 1,500 ordinary shares of Pollux Co. 5,000 ordinary shares of Brunswick Co. Melville Co, 12%, 5 years bonds par $500,000. Bonds yield 10%. Intersest is payable annually at 1 January 1 April 1 July 1 Cost (S) 71,500 180,000 537,907 (unamortized) All of the investments were purchased in 2019. In 2020 Gloria Co. Completed the following investment transactions. 1 March Sold all 1,500 ordinary shares of Pollux Corp. @@ $45. September 1 October Brunswick Corp. distributed $1 per share cash dividend. Investments (Trading) 5.000 ordinary shares of Brunswick Co. 700 ordinary share of Dumas Co. Gerald Co., 8% bonds Purchased 700 ordinary share of Dumas Co. @ 75. Sold all of Melville bonds for $525,000. Purchased Gerald Co 8% bonds at par for $280,000. Bonds mature within 5 years and interest is payable at 1 September and 1 March. Fair Value (S) Gloria Co's portfolio of trading investments appeared as follows on 31 December 2020. Cost (S) Fair Value (S) 180,000 69,000 175,000 535.000 52,500 280,000 Required a. Prepare all necessary journals at the date of investment purchased in 2019. b. Prepare bond amortization schedule from 2019 to 2021. 175,000 50,400 278,000 c. Prepare all necessary journals for 2019 to record dividend revenue, interest revenue and adjustments needed. Pollux Co. distributed $2 per share cash dividend on November 1, 2019. d. Prepare all necessary journals for 2020 to record purchasing and selling of investments, dividend revenue, interest revenue and adjustments needed. e. Prepare presentation of investment-related accounts in Gloria's statement of financial position and income statement as of December 31, 2020. Gloria Co has the following trading investment portfolio on December 31, 2019. Investments (Trading) 1,500 ordinary shares of Pollux Co. 5,000 ordinary shares of Brunswick Co. Melville Co, 12%, 5 years bonds par $500,000. Bonds yield 10%. Intersest is payable annually at 1 January 1 April 1 July 1 Cost (S) 71,500 180,000 537,907 (unamortized) All of the investments were purchased in 2019. In 2020 Gloria Co. Completed the following investment transactions. 1 March Sold all 1,500 ordinary shares of Pollux Corp. @@ $45. September 1 October Brunswick Corp. distributed $1 per share cash dividend. Investments (Trading) 5.000 ordinary shares of Brunswick Co. 700 ordinary share of Dumas Co. Gerald Co., 8% bonds Purchased 700 ordinary share of Dumas Co. @ 75. Sold all of Melville bonds for $525,000. Purchased Gerald Co 8% bonds at par for $280,000. Bonds mature within 5 years and interest is payable at 1 September and 1 March. Fair Value (S) Gloria Co's portfolio of trading investments appeared as follows on 31 December 2020. Cost (S) Fair Value (S) 180,000 69,000 175,000 535.000 52,500 280,000 Required a. Prepare all necessary journals at the date of investment purchased in 2019. b. Prepare bond amortization schedule from 2019 to 2021. 175,000 50,400 278,000 c. Prepare all necessary journals for 2019 to record dividend revenue, interest revenue and adjustments needed. Pollux Co. distributed $2 per share cash dividend on November 1, 2019. d. Prepare all necessary journals for 2020 to record purchasing and selling of investments, dividend revenue, interest revenue and adjustments needed. e. Prepare presentation of investment-related accounts in Gloria's statement of financial position and income statement as of December 31, 2020.

Answer rating: 100% (QA)

a Journal entries for the date of investment purchased in 2019 Purchase of 1500 ordinary shares of Pollux Co Investment in Pollux Co 71500 Cash 71500 Purchase of 5000 ordinary shares of Brunswick Co I... View the full answer