MacAskill Corp. has the following portfolio of securities acquired for trading purposes and accounted for using the

Question:

MacAskill Corp. has the following portfolio of securities acquired for trading purposes and accounted for using the FV-NI model at September 30, 2023, the end of the company’s third quarter:image


On October 8, 2023, the Yuen shares were sold for $4.30 per share. On November 16, 2023, 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, 2023, 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 2023. 


b. Indicate how and where the investments would be reported on the December 31, 2023 statement of financial position.


c. 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)?

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Related Book For  book-img-for-question

Intermediate Accounting Volume 1

ISBN: 9781119740469

13th Canadian Edition

Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield, Irene M. Wiecek, Bruce J. McConomy

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