Olaf Company currently owns 4,000 shares of Elsa Inc. and $50,000 bonds of Carrot Corporation.Olaf uses a different T-account for each security held. The existing investments are presented inthe 2020 balance sheet as follows:FVTPL financial assets-equity, Elsa$192,00020,000Valuation Adjustment on FVTPL financial assets-equity, Elsa$ 212,000FVTPL financial assets debt, Carrot$50,000(2.000)Valuation Adjustment on FVTPL financial assets-debt, CarrotTotal investments48.000$ 260,000In 2021, the following transactions occurred:Jan 2Purchased 5,000 shares of Anna Corporation for $60,000. The shares will beheld for trading purposes.Feb 15Received $1.30 per share cash dividend on Elsa Inc. ordinary shares.May 20Jun 30Paid $120,000 to acquire 3,000 shares (30% ownership) in Samantha Co.Received interest on Carrot Corporation bonds. The bonds have an annualinterest of 8%. Interest is paid every June 30 and December 31.Sold all the Carrot Corporation bonds for $47,000.Aug 15Oct 26Dec 31Received a cash dividend $2 per share on Samantha Co. shares.Sold 1,500 ordinary shares of Anna Corporation at $13.50 per share.Samantha Co. informed its investors that net income for the year was $50,000.At December 31, the fair value per share of the ordinary shares were:Elsa Inc. $52.Anna Corporation $14Samantha Co. $38Requirements:a) Journalize the 2021 transactions.b) Prepare the adjusting entries al December 31, 2021 to show the securities at fair value.c) Show the statement of financial position presentation of the investment-related accountsat December 31, 2021.TalliniranSchering

Particulars Debit/Credit Amount($) Jan 2: FVTPL financial assets-equity, Anna Corporation Dr 60000…

Requirements: a) Journalize the 2021 transactions. b) Prepare the adjusting entries at December 31, 2021 to show the securities at fair value. c) Show the statement of financial position presentation of the investment-related accounts at December 31, 2021.

Requirements: a) Journalize the 2021 transactions. b) Prepare the adjusting entries at December 31, 2021 to show the securities at fair value. c) Show the statement of financial position presentation of the investment-related accounts at December 31, 2021.

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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Apr. 1 Purchased for cash $338,000 of Vasquez City 3% bonds at 100 plus accrued interest of $2,535. June 30 Received first semiannual interest payment. July 31 Sold $158,400 of the bonds at 95 plus accrued interest of $396. Aug. 1 Received face value of remaining bonds at their maturity. Required: Journalize the entries to record the above selected bond investment transactions for Beacon Trust. Refer to the chart of accounts for the exact wording of the account titles. CNOW journals do not use lines for journal explanations. Every line on a journal page is used for debit or credit entries. CNOW journals will automatically indent a credit entry when a credit amount is entered.
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