Runner Corporation, which reports under IFRS, has the following investments at December 31, 2024:2.3.4.Trading investments: common shares of National Bank, cost $36,500, fair value $43,400.Investment in an associate (40% ownership): common shares of Sword Corp., cost $218,200, fair value cannot be determinedbecause the shares do not trade publicly. Runner purchased the investment on January 1, 2024. For the year ended December31, 2024, Sword Corp. reported net income of $46,600 and declared and paid dividends of $15,800.Equity investment: common shares of Epee Inc. (19% ownership) purchased on July 1, 2024, cost $423,300, fair value atDecember 31, 2024, $545,200. Management intends to purchase more shares of Epee in two years. Epee earned $39,900 forthe year ended December 31, 2024, and declared and paid dividends of $1,800, which Runner received at the end of eachquarter in 2024.Bond investment to be held to maturity: bonds of Ghoti Ltd., purchased at a cost equal to its face value of $321,500, fair value$340,700.Prepare a partial statement of financial position for Runner Corporation at December 31, 2024.RUNNER CORPORATIONStatement of Financial Position (Partial)

When specific financial information is needed or for targeted analysis, partial balance sheets come…

Answered: 1. 2. 3. Trading investments: common…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Zach Company owns 45% of the voting stock of Tomas Corporation and uses the equity method in recording this investment. Tomas Corporation reported a $9,100 net loss. Zach Company's entry would include a a.debit to the investment account for $4,095 b.credit to cash for $4,095 c.credit to a loss account for $4,095 d.credit to the investment account for $4,095
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Live Large Inc. had the following transactions involving non-strategic investments during 2020. 2020 Apr. 1 Paid $119,000 to buy a 90-day term deposit, $119,000 principal amount, 7.0%, dated April 1. 12 Purchased 4,900 common shares of Blue Balloon Ltd. at $22.50. June 9 Purchased 3,700 common shares of Purple Car Corp. at $51.50. 20 Purchased 1,650 common shares of Yellow Tech Ltd. at $16.00. July 1 Purchased for $86,894 a 9.0%, $84,000 Space Explore Inc. bond that matures in eight years when the market interest rate was 8.4%. Interest is paid semiannually beginning December 31, 2020. Live Large Inc. plans to hold this investment until maturity. 3 Received a cheque for the principal and accrued interest on the term deposit that matured on June 30. 15 Received a $0.95 per share cash dividend on the Blue Balloon Ltd. common shares. 28 Sold 2,450 of the Blue Balloon Ltd. common shares at $26.25. Sept. 1 Received a $3.00 per share cash…
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Juniper Inc. acquired a 25% interest in Saturn Co. on January 1, 2021, for $260,000. During 2021, Saturn reported net income of $86,000, and paid a total cash dividend to shareholders in the amount of $16,000. Juniper uses the equity method to account for this investment. At the end of 2021, Juniper will report the following debit balance in the investment account: Question 6 options: $285,500 $260,000 $277,500 $281,500
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Brave Industries owned investment securities with a book value of $20 million on August 12. At that time, Brave's board of directors declared a property dividend consisting of these securities. The fair value of the securities was as follows: Declaration --- August 12 Date of record --- September 1 Distribution date --- September 20 By how much is total stockholder' equity reduced by the property dividend? $31 million $30 million $27 million $20 million $28 million 30 million 31 million
The investments of Harlon Enterprises included the following cost and fair value amounts ($ in millions): Fair Value, Dec. 31 2022 N/A $ 37 Equity Investments A Corporation shares B Corporation shares C Corporation shares. D Industries shares Totals Cost $ 20 35 15 45 $115 1 Increase 2 Amount Harlon accounts for its equity investment portfolio at fair value through net income. Harlon sold its holdings of A Corporation shares on June 1, 2022, for $15 million. On September 12, it purchased the C Corporation shares. $ 2021 $ 14 Required: 1. What is the effect of the sale of the A Corporation shares and the purchase of the C Corporation shares on Harlon's 2022 pretax $ 35 N/A 46 $95 earnings? 2. At what amount should Harlon's securities equity investment portfolio be reported in its 2022 balance sheet? (For all requirements, enter your answers in millions, (i.e., 10,000,000 should be entered as 10).) 14 50 $101 6 million 5 milion
Q2. The following transactions involving marketable securities investments of Kappa Co., occurred during 2022; a) On Feb. 14, purchased Alfa's 90-day bonds, paying cash of $170,000 (par value $170,000), issue date Feb. 14, that pay 9% interest. b) On March 21, purchased 850 shares of Beta Co. at $21 per share, in cash. c) On May 14, collected the principal and 90-days' interest on the bonds purchased in transaction a. d) On Aug. 1, paid $70,000 cash to Gama Co.'s 12% bonds (par value $70,000), issue date July 31, 2022, and retires January 31, 2023. e) On Sept. 1, Beta Co. declared a $1.80 per share cash dividend on shares payable on Oct.31. f) On Oct. 7, sold 425 shares of Beta Co. and collected totally $10,625. g) On Oct. 31, collected Gama Co.'s 90-days' interest and Beta Co.'s dividends. Required: Prepare the journal entries and post to necessary ledger accounts.
Carlin Enterprises purchased 2,000 shares of the 2,000,000 common shares outstanding in Captain Inc. Carlin intends to hold on to this investment for the foreseeable future. How should this investment be classified on the books of Carlin? O trading equity investment O held-to-maturity debt investment O held-to-maturity equity investment O available-for-sale equity investment Question 23 eld-to-maturity securities affects other comprehensive income and appear as financing activities on the statement of cash flows. es to financial statements.

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