In September 30, 2020, Reveal Ltd. invested excess cash in the shares of Adam Company. It acquired 2,000 shares at $45 each. On December 31, 2020, and December 31, 2021, the shares of Adam were trading at $36 and $51 per share, respectively.

Required-

Assuming the investment in Adam is classified as Fair Value Through Other Comprehensive Income (FVTOCI), prepare all required journal entries in 2020 and 2021.

Problem 2(11.5 marks)(25 minutes)

The following is an alphabetical list of account balances at December 31, 2021 for The Best Corporation. The company did not declare any dividends in 2021.

Building

850,000

FVTOCI investments

120,000

Capital Stock

702,000

Cash

50,000

Cost of goods sold

650,000

Inventories

96,000

Depreciation expense

49,000

Dividends payable

8,000

Supplies

16,000

Income tax expense

80,000

Insurance expense

9,000

Interest expense

35,000

Accumulated depreciation - equipment

120,000

Unearned revenues

63,000

Interest income

17,000

Interest payable

16,000

Interest receivable

9,000

Accounts payable

140,000

Accounts Receivable

89,000

Accumulated depreciation - building

230,000

Land

650,000

Long-term bank loan

590,000

Patents

125,000

Equipment

560,000

FVTPL investments

129,000

Prepaid expenses

16,000

Rent expense

23,000

Bonds payable, due December 31, 2028

260,000

Retained Earnings (beginning of year balance)

310,000

Salaries expense

130,000

Sales

1,230,000

Required-

Prepare Statement of Financial Position for 2021.