At December 31, 2021, Perth Inc. has the following investments. Assume the FVTPL investments are held for trading. Security Co. A common shares Co. B preferred shares Co. C common shares Total Investment Category FVTPL FVTPL FVTOCI Carrying Value $19,000 11,500 21,000 $51,500 Fair Value $16,000 14,000 19,000 $49,000 (a) Prepare the adjusting entries required at December 31 to reflect the above information. (b) Show the financial statement presentation (balance sheet AND statements of income and comprehensive income) of the investments and related transactions and adjustments at December 31, 2021. (Ignore income tax.) BE SPECIFIC AS TO CLASSIFICATION AND ACCOUNT TITLE. (c) Assuming that on March 20, 2022, Perth sold Co. B preferred shares for $13,000, and sold Co. A common shares for $17,500. Prepare the journal entries to record these transactions.

At December 31, 2021, Perth Inc. has the following investments. Assume the FVTPL investments are held for trading. Security Co. A common shares Co. B preferred shares Co. C common shares Total Investment Category FVTPL FVTPL FVTOCI Carrying Value $19,000 11,500 21,000 $51,500 Fair Value $16,000 14,000 19,000 $49,000 (a) Prepare the adjusting entries required at December 31 to reflect the above information. (b) Show the financial statement presentation (balance sheet AND statements of income and comprehensive income) of the investments and related transactions and adjustments at December 31, 2021. (Ignore income tax.) BE SPECIFIC AS TO CLASSIFICATION AND ACCOUNT TITLE. (c) Assuming that on March 20, 2022, Perth sold Co. B preferred shares for $13,000, and sold Co. A common shares for $17,500. Prepare the journal entries to record these transactions.

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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