Concord Corporation made the following purchases of investments during 2023, the first year in which Concord invested in equity securities: 1. On January 15, it purchased 6,390 shares of Nirmala Corp's common shares at $23.80 per share plus commission of $1,407. 2. On April 1, it purchased 3,550 shares of Oxana Corp.'s common shares at $37 per share plus commission of $2,393. 3. On September 10, it purchased 4,970 shares of WTA Corp's preferred shares at $18.80 per share plus commission of $2,066.
Concord Corporation made the following purchases of investments during 2023, the first year in which Concord invested in equity securities: 1. On January 15, it purchased 6,390 shares of Nirmala Corp's common shares at $23.80 per share plus commission of $1,407. 2. On April 1, it purchased 3,550 shares of Oxana Corp.'s common shares at $37 per share plus commission of $2,393. 3. On September 10, it purchased 4,970 shares of WTA Corp's preferred shares at $18.80 per share plus commission of $2,066.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Transcribed Image Text:Concord Corporation made the following purchases of investments during 2023, the first year in which Concord invested in equity
securities:
1.
On January 15, it purchased 6,390 shares of Nirmala Corp's common shares at $23.80 per share plus commission of $1,407.
2.
On April 1, it purchased 3,550 shares of Oxana Corp's common shares at $37 per share plus commission of $2,393.
3. On September 10, it purchased 4,970 shares of WTA Corp's preferred shares at $18.80 per share plus commission of $2,066.
On May 20, 2023, Concord sold 2,130 of the Nirmala common shares at a market price of $25 per share less brokerage commissions
of $2,027. The year-end fair values per share were as follows: Nirmala $21, Oxana $39, and WTA $20. The chief accountant of
Concord tells you that Concord holds these investments with the intention of selling them to earn short-term profits from
appreciation in their prices and accounts for them using the FV-NI model.
Concord follows IFRS.
Prepare the adjusting entry needed on December 31, 2023. (Credit account titles are automatically indented when the
amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for
the amounts. List debit entry before credit entry.)
Date Account Titles and Explanation
Dec. 31 FV-NI Investments
Investment Income or Loss
Debit
Credit
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps with 4 images
Similar questions
Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education