Myrnam Co. has the following investments held for trading on December 31, 2021: Security Co. M common shares FVTPL Co. N preferred shares FVTPL Co. P common shares Category | Carrying Value 185,000 125,000 230,000 540,000 Fair Value 160,000 140,000 190,000 490,000 FVTOCI Total 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 investments 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 entried required to record these transactions. Round amounts to the nearest dollar. Show ALL calculation
Myrnam Co. has the following investments held for trading on December 31, 2021: Security Co. M common shares FVTPL Co. N preferred shares FVTPL Co. P common shares Category | Carrying Value 185,000 125,000 230,000 540,000 Fair Value 160,000 140,000 190,000 490,000 FVTOCI Total 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 investments 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 entried required to record these transactions. Round amounts to the nearest dollar. Show ALL calculation
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Myrnam Co. has the following investments held for trading on December 31, 2021:
Security
Co. M common shares FVTPL
Co. N preferred shares FVTPL
Co. P common shares
Total
Category
|Carrying Value
185,000
125,000
230,000
540,000
Fair Value
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 investments 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 entried required to record these transactions.
Round amounts to the nearest dollar. Show ALL calculation
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