It is year 1, the White Caps Ltd s first year of operations White Caps Ltd had the following transactions regarding their investments May 1 Purchased 600 Jerry Co common shares for $180 per share This investment is classified as held for trading June 1 Purchased 1,000 bonds of Larry Inc at $300 each These bonds pay interest at a rate of 6 , paid semi annually on November 30 and May 31 These bonds were also purchased for trading purposes July 1 Purchased 4,000 Barry Ltd common shares for $210 per share These shares represent 25 of the issued common shares of Barry ltd Because of this investment, the directors of Barry Ltd invited a White Caps Ltd executive to sit on their board Sept 1 Received a $3 per share cash dividend from Barry Ltd Nov 1 Sold 200 Jerry Co common shares for $189 per share 30 Interest on the Larry Inc bonds was received Dec 15 A $0 50 per share cash dividend on Jerry Co common shares was received 31 As of this date, the following fair values and net income information was identified $165 per Jerry Co share $219 per Barry Ltd share $303 per Larry Inc bond Barry Ltd reported net income for the year ended December 31, Year 1, of $300,000 White Caps Ltd uses the FVTPL (fair value through profit or loss method) when accounting for non strategic investments, and the equity method when accounting for strategic investments Instructions (a) Record the above transactions for the dates May 1 to Dec 15 (10 marks) (b) Prepare all necessary adjusting entries on December 31 st , Year 1 required to report the investments at their appropriate value and any accrued investment revenue (5 marks)

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It is year 1, the White Caps Ltd.s first year of operations. White Caps Ltd. had the following transactions regarding their investments: May 1 Purchased

It is year 1, the White Caps Ltd.s first year of operations. White Caps Ltd. had the following transactions regarding their investments:

May		1	Purchased 600 Jerry Co. common shares for $180 per share. This investment is classified as held for trading.
June	1		Purchased 1,000 bonds of Larry Inc. at $300 each. These bonds pay interest at a rate of 6%, paid semi-annually on November 30 and May 31. These bonds were also purchased for trading purposes.
July	1		Purchased 4,000 Barry Ltd. common shares for $210 per share. These shares represent 25% of the issued common shares of Barry ltd. Because of this investment, the directors of Barry Ltd. invited a White Caps Ltd. executive to sit on their board.
Sept.	1		Received a $3-per-share cash dividend from Barry Ltd.
Nov.	1		Sold 200 Jerry Co. common shares for $189 per share.
	30		Interest on the Larry Inc. bonds was received.
Dec.	15		A $0.50-per-share cash dividend on Jerry Co. common shares was received.
	31		As of this date, the following fair values and net income information was identified: $165 per Jerry Co. share $219 per Barry Ltd. share $303 per Larry Inc. bond Barry Ltd. reported net income for the year ended December 31, Year 1, of $300,000.

White Caps Ltd. uses the FVTPL (fair value through profit or loss method) when accounting for non-strategic investments, and the equity method when accounting for strategic investments.

Instructions

(a) Record the above transactions for the dates May 1 to Dec 15. (10 marks)

(b) Prepare all necessary adjusting entries on December 31^st, Year 1 required to report the investments at their appropriate value and any accrued investment revenue. (5 marks)