Corded Industries Ltd., a public company, reported the following on its November 30, 2016, balance sheet.

Long-term investments at fair value through other comprehensive

income-equity, Cedarshakes Ltd. (10,000 shares)......................................$136,000

Short-term investments at fair value through profit or loss

Johnny's Bakery Ltd. (14,000 shares)........................................................18,000

Sally's Tea Ltd., $50,000 par value, 10% bonds, due

December 31, 2019 (originally purchased at par)..........................................54,000

Long-term investments at amortized cost

120-day treasury bill............................................................................20,000

Investment in associate, Diane's Cosmetics Inc. (35,000 shares)

(accounted for using the equity method)...................................................425,000

The following transactions took place during 2017:

1. Dividends were received from Cedarshakes Ltd.

2. Interest was received on the treasury bill.

3. The treasury bill was cashed with no additional interest received.

4. Interest was received on the Sally's Tea bonds.

5. Dividends were received from Johnny's Bakery Ltd.

6. Dividends were received from Diane's Cosmetics.

7. Sold 7,000 common shares of Johnny's Bakery at again.

8. Sold 3,000 common shares of Cedarshakes at a loss.

9. Received the financial statements of Diane's Cosmetics reporting a profit for the year.

10. Received the financial statements for Cedarshakes Ltd. reporting a loss for the year.

11. The fair value of the remaining Cedarshakes shares was greater than the carrying value at year end.

12. The fair value of the remaining shares of Johnny's Bakery was less than the carrying value at year end.

13. The fair value of the Sally's Tea bonds was greater than the carrying value at year end.

14. The fair value of Diane's Cosmetics was greater than the carrying value at year end.

Instructions

Using the following table format, indicate whether each of the above transactions would result in an increase (+), a decrease (-), or no effect (NE) in each category. The first one has been done for you as an example.

TAKING IT FURTHER
Assume instead that Corded Industries is a private company. How would your response to the question differ if the company reported under ASPE?

Transcribed Image Text:

Statement of Comprehensive Income Other Balance Sheet Income Statement Shareholders Revenues Expenses Assets LiabilitiesEquity a and Gains nd Losses Profit Comprehensive Income NE NE NE