A11-11 FVTPL (LO 11-3, 11-4) On 1 November 20X8, Porter Company acquired the following FVTPL investments: Minto Corp.-2,100 common shares at $10 cash per share . Pugwash Corp.-750 preferred shares at $20 cash per share The annual reporting period ends 31 December. Quoted fair values on 31 December 20X8 were as follows: Minto Corporation common, $8 . Pugwash Corporation preferred, $22 The following information relates to 20X9: 2 March Received cash dividends per share as follows: Minto Corporation, $2.20; and Pugwash Corporation, $1.20. 1 October Sold 210 shares of Pugwash Corporation preferred at $26 per share. 31 December Fair values were as follows: Minto common, $18, and Pugwash preferred, $21. Required: 1. Prepare the entry for Porter Company to record the purchase of the securities. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) No Date General Journal Debit Credit 1 Nov. 20X8 Investment in Minto Co. shares 31,500 X Investment in Pugwash Co. shares 18,750 X Cash 50,250 X2. Prepare the adjusting entries needed at the end of 20X8. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) No Date General Journal Debit Credit 1 31 Dec. 20X8 Investment in Pugwash Co. shares 1,500 Investment revenue: Holding gain: Pugwash Co. shares 1,500 2 31 Dec. 20X8 Investment in Minto Co. shares X 4,200 Investment revenue: Holding loss: Minto Co. shares X 4,2003. Show the amount that would be reported in 20X8 earnings and the asset amounts on the statement of financial position. Earnings, 20X8: _ Net loss on FVTPL investments 2,700 0 Statement of nancial position, 31 December 20X8: _ FVTPL investments, at fair value 4. Prepare the all entries required in 20X9. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) 1 2 Mar. 20x9 Cash Q 5,520 0 Investment revenue: Dividends 0 5,520 o 2 1 Oct. 20x9 Cash Q 840 0 Investment in Pugwash Co. shares 0 840 a 8 9 3 31 Dec. 20x9 Investment in Minto Co. shares 0 21,000 0 Investment revenue: Dividends a 21,000 0 4 31 Dec. 20x9 Investment in Pugwash Co. shares 6 540 0 Investment revenue: Dividends a 540 o 5. Show the amount that would be reported in 2OX9 earnings and the asset amounts on the statement of nancial position. Earnings, 20x9: Investment revenue - Dividends Statement of nancial position, 31 December 20x9: FVTPL investments, at fair value *Red text indicates no response was expected in a cell or a formula-based calculation is incorrect; no points deducted. 6. Repeat part (5), assuming that both the investments were originally designated FVOCI-Equity investments. Include the balance of the AOCI equity reserve for holding gain/loss for the SFP amounts. The holding gain/loss amounts are not reclassified after realization. Earnings, 20X9: Investment revenue Statement of nancial position, 31 December 20x9: FVTOCI investments, at fair value Other comprehensive income (loss) Casil Investment in Minto Co. shares Investment in Pugwash Co. shares Investment revenue: Dividends Investment revenue: Holding gain: Minto Co. shares Investment revenue: Holding aain: Puawash Co. sharesInvestment revenue: Dividends Investment revenue: Holding gain: Minto Co. shares Investment revenue: Holding gain: Pugwash Co. shares Investment revenue: Holding loss: Minto Co. shares Investment revenue: Holding loss: Pugwash Co. shares