Accounting Question (Question 4)

Refer to Question 4 Instructions.png, fill out Question 4 Part 1.png, Question 4 Part 2.png, and Part 3. Use the list of Accounts Below to anwser the questions.

List of Accounts

• 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

Assume Novak uses = periodic system. Prepare all journal entries needed, including the and-of-month adjusting antry to record cost of goods sold. A physical count indicates that the ending inventory for July is 110 units. (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 O for the amounts. Record journal entries in the order presented in the problem.) Date Account Titles and Explanation Debit Credit July 31 Assistance Used Calculate gross profit using the periodic system. Gross profit / [loss)Date Account Titles and Explanation Debit Credit (To record sales on account) (To record cost of goods sold) (To record sales on account) (To record cost of goods sold) (To record sales on account) (To record cost of goods sold) Calculate gross profit using the perpetual system.At 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