Myrnam Co. has the following investments held for trading on December 31, 2021:Carrying Value185,000125,000230,000540,000Fair ValueSecurityCo. M common shares FVTPLCo. N preferred shares FVTPLCo. P common sharesTotalCategory160,000140,000190,000490,000FVTOCIInstructions:a. Prepare the adjusting entries required at December 31 to report the aboveinvestments at fair value.b. Show the financial statement presentation of the investmehts and holding gainsand losses that result from fair value adjustments at December 31, 2021. (Ignoreincome tax.)c. Assuming that on April 25, 2022, Myrnam sold Co. M common shares for$160,000, Co. N preferred shares for $135,000, and Co P common shares for$200,000, prepare the journal entries required to record these transactions.

The entries have been prepared below.

Answered: Category shares FVTPL shares FVTPL…

Category shares FVTPL shares FVTPL shares Carrying Value 185,000 125,000 230,000 540,000 FVTOCI the adjusting entries required at December 31 to r ents at fair value

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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Question

Myrnam Co. has the following investments held for trading on December 31, 2021:
Carrying Value
185,000
125,000
230,000
540,000
Fair Value
Security
Co. M common shares FVTPL
Co. N preferred shares FVTPL
Co. P common shares
Total
Category
160,000
140,000
190,000
490,000
FVTOCI
Instructions:
a. Prepare the adjusting entries required at December 31 to report the above
investments at fair value.
b. Show the financial statement presentation of the investmehts and holding gains
and losses that result from fair value adjustments at December 31, 2021. (Ignore
income tax.)
c. Assuming that on April 25, 2022, Myrnam sold Co. M common shares for
$160,000, Co. N preferred shares for $135,000, and Co P common shares for
$200,000, prepare the journal entries required to record these transactions.

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