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CORRECT ANSWER NEEDED ASAP! THANK YOU SO MUCH IN ADVANCE The Magnus Corporation, a publicly accountable entity, had the following investments as at December 31,

CORRECT ANSWER NEEDED ASAP! THANK YOU SO MUCH IN ADVANCEimage text in transcribedimage text in transcribed

The Magnus Corporation, a publicly accountable entity, had the following investments as at December 31, 20x2: Original Carrying Fair Company Type Classification Cost Value Value Will Corp Shares FVPL $65,000 S61,000 $58,000 Simon Co. Shares FVPL 205,000 212,000 225,000 Craig Inc. Shares FVOCI 82,000 88,000 106,000 Frey Inc. Shares FVOCI 94,000 80,000 88,000 Blandin Co. Bonds FVOCI 210,106 210,106 210,106 The Blandin Co. bonds were purchased on December 31, 20x2. The bonds have a face value of $200,000, pay interest of 4% semiannually (Jun 30 & Dec 31) and mature on December 31, 20x19. Bond issue costs were capitalized to the FVOCI investment account. The following transactions took place in 20x3: Feb 4 Sold the Simon shares for $250,000 less $10,000 in brokerage fees Mar 31 Purchased shares of Winny Inc. for $105,000 plus $6,500 in brokerage fees. The shares are classified as FVPL. April 20 Sold the Frey Inc. shares for $98,000 less $1,800 in brokerage fees. Aug 12 Purchased shares of Bane Co. for $45,000 plus $1,000 in brokerage fees. The shares are classified FVOCI. Dec 31 The fair values of the investments on hand are as follows: Will Corp $ 51,000 Craig Inc. 125,000 Blandin Co. 206,000 Winny Inc. 114,000 Bane Co. 29,500 Required - a) Prepare the journal entries to record all 20x3 transactions for the investments above. When preparing the December 31, 20x3 fair value adjustment entry, write two journal entries only: one for the total fair value adjustment on FVPL investments and one for the total fair value adjustment on FVOCI investments. Do not write a separate journal entry for each individual investment. b) Assume that Magnus's net income for the year ended December 31, 20x3 is $1,000,000 Prepare the bottom portion of the Statement of Comprehensive Income starting with the net income line. c) Prepare a t-account showing the transaction in the AOCI account from the beginning to the end of the year. Prove the ending balance. d) At the end of 20x4 the Blandin Co. bonds were trading at 104. Write all journal entries for the bonds for the year ended December 31, 20x4

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