4 Riverbed Corporation, a Canadian-based international company that follows IFRS, has the following securities in its portfolio of investments acquired for trading purposes and accounted for using the FV-NI method on December 31, 2019: 5 9 Investments 7 1,300 shares of David Jones Inc., common 8 5,100 shares of Hearn Corp., common 420 shares of Alessandro Inc., preferred Carrying Amount (before adjustment) Fair Value $67,300 $63,000 153,000 147,000 67,200 69,300 $287,500 $279,300 11 12 In 2020, Riverbed completed the following securities transactions: 13 14 15 16 Mar. 1 Sold the 1,300 shares of David Jones Inc. common at $43 per share, less fees of $500. Apr. 1 Bought 800 shares of Oberto Ltd. common at $74 per share, plus fees of $1,000. 17 Riverbed Corporation's portfolio of trading securities appeared as follows on December 31, 2020: 10 96 8 Carrying Amount Investments 5,100 shares of Hearn Corp., common (before adjustment) $153,000 Fair Value 20 21 800 shares of Oberto Ltd., common 22 420 shares of Alessandro Inc., preferred 23 24 $147,000 59,200 57,100 67,200 $279,400 64,500 $268,600 25 Assume that the company does not recognize and report dividends and other components of investment gains and losses separately. 26 27 Instructions 28 a. Prepare the Riverbed Corporation general journal entry to record the adjusting entry for December 31, 2019. (2 marks) 29 Date Accounts and Explanations Debit Credit 30 1 unrealized holding gain/loss Data 2 security FV adjustment 8200 8200 43 44 b. Prepare the Riverbed Corporation general journal entry to record the sale of the David Jones Inc. shares. (2 marks) 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 Date Accounts and Explanations Debit Credit c. Prepare the Riverbed Corporation general journal entry to record the purchase of the Oberto Ltd. shares. (2 marks) Date Accounts and Explanations Debit Credit 68 69 70 71 72 73 74 75 63 64 65 66 66 67 40 d. Prepare the Riverbed Corporation general journal entry to record the adjusting entry for December 31, 2020. (2 marks) Date Accounts and Explanations Debit Credit 76 77 78 Save your excel file as you go. Click SAVE now. Q6 New