Accounting Question

Instructions: Refer to Question 4 Instructions.png to Anwser Question 4 - Part 1.png and Question 4 - Part 2.png

Notes: For the journal entries on Parts 1 and 2, use the list of accounts below.

List of Accounts (Journal Entries)

• Accumulated Other Comprehensive Income
• Allowance for Investment Impairment
• Bond Investment at Amortized Cost
• Cash
• Dividends Receivable
• Dividend Revenue
• FV-NI Investments
• FV-OCI Investments
• Gain on Disposal of Investments in Associate
• Gain on Disposal of Investments - Cost/Amortized Cost
• Gain on Disposal of Investments - FV-NI
• Gain on Disposal of Investments - FV-OCI
• Gain or Loss in Value of Investment Property
• GST Receivable
• Interest Expense
• Interest Income
• Interest Payable
• Interest Receivable
• Investment in Associate
• Investment Income or Loss
• Loss on Discontinued Operations
• Loss on Disposal of Investments - Cost/Amortized Cost
• Loss on Disposal of Investments - FV-NI
• Loss on Disposal of Investments - FV-OCI
• Loss on Impairment
• No Entry
• Note Investment at Amortized Cost
• Other Investments
• Recovery of Loss from Impairment
• Retained Earnings
• Unrealized Gain or Loss
• Unrealized Gain or Loss - OCI

Question 4 Instructions.png

Prepare the entry to adjust the portfolio of investments to fair value at December 31, 2020. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) Date Account Titles and Explanation Debit Credit Dec. 31, 2020 Prepare the presentation of all investment-related accounts on the statement of financial position at December 31, 2020 Assume that the balance of AOCI at December 31, 2019 is zero. (Enter negative amounts using either a negative sign preceding the number e.g. -2,945 or parentheses e.g. (2,945).) Pina Colada Inc Statement of Financial PositionIndicate what accounts and amounts would be reported on the statement of comprehensive income for the year ended December 31, 2020, and where each would be reported. (Enter negative amounts using either a negative sign preceding the number 2g.-2,945 or parentheses eg. (2,945)) Pina Colada Inc. Statement of Comprehensive Income v Prepare the journal entries for the 2021 sale of the investment in Ahn Inc, including reclassifying holding gains or losses to retained earnings and for the dividend received from Burnham Corp. (Credit account titles are automatically indented when the amount is entered. Do not indent manualhe If no entry is required, select "No Entry" for the account titles and enter O for the amounts.J Date Account Titles and Explanation Debit Credit Jan. 20, 2021 (To adjust to fair value at date of disposal) Jan. 20, 2021 (To record disposal) Jan. 20, 2021 (To reclassify holding lass) June 2021At December 31, 2020, the equity investments of Pina Colada Inc. that were accounted for using the FV-OCI model without recycling were as follows: Cost and Carrying Unrealized Investment Amount Fair Value Gain (Loss) Ahn Inc. $174,300 $150,200 $(24,100 ) Burnham Corp. 122,100 139,900 17,800 Chi Ltd. 72,600 74,900 2,300 Total $369,000 $365,000 $(4,000 Because of a change in relationship with Ahn Inc., Pina Colada Inc. sold its investment in Ahn for $152,800 on January 20, 2021. No other investments were acquired or sold during 2021; however, a dividend of $1,300 was received from Burnham Corp. in June. At December 31, 2021, the fair values of Burnham and Chi shares were $153,600 and $72,700, respectively