P17.11 (Page 17– 70) Fernandez SA invested its excess cash in equity investments during 2019. The business model for these investments is to profit from trading on price changes. Instructions (a). As of December 31, 2019, the equity investment portfolio consisted of the following. Investment Quantity Cost Fair Value Lindsay Jones, Inc. 1,000 shares Poley Corp. Arnold Aircraft € 15,000 40,000 72,000 €127,000 € 21,000 42,000 60,000 €123,000 2,000 shares 2,000 shares Totals What should be reported on Fernandez's December 31, 2019, statement of financial position relative to these investments? What should be reported on Fernandez's 2019 income statement? (b). During the year 2020, Fernandez sold 2,000 shares of Poley Corp. for €38,200 and purchased 2,000 more shares of Lindsay Jones, Inc. and 1,000 shares of Duff Company. On December 31, 2020, Fernandez's equity investment portfolio consisted of the following. Fair Value €20,000 40,000 12,000 22,000 €94,000 Investment Quantity Cost Lindsay Jones, Inc. 1,000 shares Lindsay Jones, Inc. 2,000 shares Duff Company Arnold Aircraft €15,000 33,000 16,000 1,000 shares 2,000 shares 72,000 Totals €136,000| What should be reported on Fernandez's December 31, 2020, statement of financial position? What should be reported on Fernandez's 2020 income statement? During the year 2021, Fernandez sold 3,000 shares of Lindsay Jones, Inc. for €39,900 and 500 shares of Duff Company at a loss of €2,700. On December 31, 2021, (c). Fornondo iv invectmont nortfelie concicted ofthe follouring
P17.11 (Page 17– 70) Fernandez SA invested its excess cash in equity investments during 2019. The business model for these investments is to profit from trading on price changes. Instructions (a). As of December 31, 2019, the equity investment portfolio consisted of the following. Investment Quantity Cost Fair Value Lindsay Jones, Inc. 1,000 shares Poley Corp. Arnold Aircraft € 15,000 40,000 72,000 €127,000 € 21,000 42,000 60,000 €123,000 2,000 shares 2,000 shares Totals What should be reported on Fernandez's December 31, 2019, statement of financial position relative to these investments? What should be reported on Fernandez's 2019 income statement? (b). During the year 2020, Fernandez sold 2,000 shares of Poley Corp. for €38,200 and purchased 2,000 more shares of Lindsay Jones, Inc. and 1,000 shares of Duff Company. On December 31, 2020, Fernandez's equity investment portfolio consisted of the following. Fair Value €20,000 40,000 12,000 22,000 €94,000 Investment Quantity Cost Lindsay Jones, Inc. 1,000 shares Lindsay Jones, Inc. 2,000 shares Duff Company Arnold Aircraft €15,000 33,000 16,000 1,000 shares 2,000 shares 72,000 Totals €136,000| What should be reported on Fernandez's December 31, 2020, statement of financial position? What should be reported on Fernandez's 2020 income statement? During the year 2021, Fernandez sold 3,000 shares of Lindsay Jones, Inc. for €39,900 and 500 shares of Duff Company at a loss of €2,700. On December 31, 2021, (c). Fornondo iv invectmont nortfelie concicted ofthe follouring
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Transcribed Image Text:P17.11 (Page 17 – 70) Fernandez SA invested its excess cash in equity investments during
2019. The business model for these investments is to profit from trading on price changes.
Instructions
(a).
As of December 31, 2019, the equity investment portfolio consisted of the following.
Investment
Quantity
Cost
Fair Value
Lindsay Jones, Inc.
Poley Corp.
Arnold Aircraft
€ 15,000
€ 21,000
42,000
60,000
1,000 shares
40,000
72,000
€127,000
2,000 shares
2,000 shares
Totals
€123,000
What should be reported on Fernandez's December 31, 2019, statement of financial
position relative to these investments? What should be reported on Fernandez's 2019
income statement?
(b).
During the year 2020, Fernandez sold 2,000 shares of Poley Corp. for €38,200 and
purchased 2,000 more shares of Lindsay Jones, Inc. and 1,000 shares of Duff
Company. On December 31, 2020, Fernandez's equity investment portfolio consisted
of the following.
Investment
Quantity
1,000 shares
Cost
Fair Value
Lindsay Jones, Inc.
Lindsay Jones, Inc.
Duff Company
€15,000
33,000
€20,000
40,000
12,000
22,000
€94,000
2,000 shares
1,000 shares
16,000
Arnold Aircraft
72,000
€136,000
2,000 shares
Totals
What should be reported on Fernandez's December 31, 2020, statement of financial
position? What should be reported on Fernandez's 2020 income statement?
During the year 2021, Fernandez sold 3,000 shares of Lindsay Jones, Inc. for €39,900
and 500 shares of Duff Company at a loss of €2,700. On December 31, 2021,
Fernandez's equity investment portfolio consisted of the following.
(c).
18
Investment
Quantity
Cost
Fair Value
Arnold Aircraft
Duff Company
€82,000
€72,000
8,000
€80,000
2,000 shares
500 shares
6,000
Totals
€88,000
What should be reported on the face of Fernandez's December 31, 2021, statement of
financial position? What should be reported on Fernandez's 2021 income statement?
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