During 2023, Financial Oriole, a public company, purchased equity securities for trading purposes. At December 31, 2023, the securities for Financial Oriole were as follows: Security Quantity Cost Market Value Sabo common shares 1,000 $15,000 $13,500 PYK $1.50 preferred shares 2,000 24,000 24,500 Total $39,000 $38,000 The following transactions with respect to Financial Oriole's investments occurred during 2024: (b) Your answer is partially correct. Record Financial Oriole's 2024 transactions and any required adjusting journal entries at December 31, 2024. (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. Record journal entries in the order presented in the problem. Round answer to O decimal places, eg. 5,276. List all debit entries before credit entries.) Date Jan 15 Purchased 1.500 common shares of Hazmi for $15 per share. The shares are designated as fair value through other comprehensive income. 15 Mar. 20 June 15 Received dividends on the PYK preferred shares of $1.50 per share. Sold 500 of the Sabo common shares for $15.75 per share. Aug 5 Received dividends on the Sabo common shares of $3.00 per share. Oct. 15 Received an additional 1,500 common shares of Hazmi as a result of a 2-for-1 stock split. At December 31, 2024, the securities held by Financial Oriole were trading on the TSX at the following prices: Security Sabo common shares Price $16.00 PYK $1.50 preferred shares 13.75 Hazmi common shares 7.00 (a) Your answer is correct. Show how the securities would be reported on Financial Oriole's December 31, 2023, balance sheet. Current Assets FINANCIAL ORIOLE Balance Sheet (Partial) December 31, 2023 Investments at Fair Value through Profit or Loss 38000 Account Titles and Explanation Investments at FVTOCI Cash 20 Cash Investment Income or Loss 15 Cash Investment Income or Loss Investments at FVTPL Cash Investment Income or Loss 15 No Entry No Entry 31 Investments at FVTPL 31 Investment Income or Loss (To record fair value adjustment for Sabo and PYK) OCI-Holding Gainor Loss Investments at FVTOCI Debit 22500 3000 7875 3000 1000 1500 Credit 22500 3000 1125 6750 3000 1000 0 1500

During 2023, Financial Oriole, a public company, purchased equity securities for trading purposes. At December 31, 2023, the securities for Financial Oriole were as follows: Security Quantity Cost Market Value Sabo common shares 1,000 $15,000 $13,500 PYK $1.50 preferred shares 2,000 24,000 24,500 Total $39,000 $38,000 The following transactions with respect to Financial Oriole's investments occurred during 2024: (b) Your answer is partially correct. Record Financial Oriole's 2024 transactions and any required adjusting journal entries at December 31, 2024. (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. Record journal entries in the order presented in the problem. Round answer to O decimal places, eg. 5,276. List all debit entries before credit entries.) Date Jan 15 Purchased 1.500 common shares of Hazmi for $15 per share. The shares are designated as fair value through other comprehensive income. 15 Mar. 20 June 15 Received dividends on the PYK preferred shares of $1.50 per share. Sold 500 of the Sabo common shares for $15.75 per share. Aug 5 Received dividends on the Sabo common shares of $3.00 per share. Oct. 15 Received an additional 1,500 common shares of Hazmi as a result of a 2-for-1 stock split. At December 31, 2024, the securities held by Financial Oriole were trading on the TSX at the following prices: Security Sabo common shares Price $16.00 PYK $1.50 preferred shares 13.75 Hazmi common shares 7.00 (a) Your answer is correct. Show how the securities would be reported on Financial Oriole's December 31, 2023, balance sheet. Current Assets FINANCIAL ORIOLE Balance Sheet (Partial) December 31, 2023 Investments at Fair Value through Profit or Loss 38000 Account Titles and Explanation Investments at FVTOCI Cash 20 Cash Investment Income or Loss 15 Cash Investment Income or Loss Investments at FVTPL Cash Investment Income or Loss 15 No Entry No Entry 31 Investments at FVTPL 31 Investment Income or Loss (To record fair value adjustment for Sabo and PYK) OCI-Holding Gainor Loss Investments at FVTOCI Debit 22500 3000 7875 3000 1000 1500 Credit 22500 3000 1125 6750 3000 1000 0 1500

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter13: Investments And Long-term Receivables

Section: Chapter Questions

Problem 2MC: During 2021, Anthony Company purchased debt securities as a long-term investment and classified them...

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