MacAskill Corp. has the following portfolio of securities acquired for trading purposes and On October 8, 2020,
Question:
MacAskill Corp. has the following portfolio of securities acquired for trading purposes and
On October 8, 2020, the Yuen shares were sold for $4.30 per share. On November 16, 2020, 3,000 common shares of Patriot Corp. were purchased at $44.50 per share. MacAskill pays a 1% commission on purchases and sales of all securities. At the end of the fourth quarter, on December 31, 2020, the fair values of the shares held were as follows: Monty $106,000; Patriot $122,000; and Oakwood $203,000. MacAskill prepares financial statements every quarter.
Instructions
a. Prepare the journal entries to record the sale, purchase, and adjusting entries related to the portfolio for the fourth quarter of 2020.
b. Indicate how and where the investments would be reported on the December 31, 2020 statement of financial position.
c. Digging Deeper Under what conditions might you recommend that the portfolio accounted for at FV-NI be reported somewhere other than where you indicated in part (b)?
Financial StatementsFinancial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial... Portfolio
A portfolio is a grouping of financial assets such as stocks, bonds, commodities, currencies and cash equivalents, as well as their fund counterparts, including mutual, exchange-traded and closed funds. A portfolio can also consist of non-publicly...
Step by Step Answer:
a October 8 2020 Cash 212850 Gain on Disposal of Investment FVNI 12850 FVNI Investments 200000 50000 ...View the full answer
Intermediate Accounting Volume 1
ISBN: 978-1119496496
12th Canadian edition
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield, Irene M. Wiecek, Bruce J. McConomy
