On December 31, 2020, 76ers Corp. has the following securities in its portfolio of temporary investments: Cost
Question:
On December 31, 2020, 76ers Corp. has the following securities in its portfolio of temporary investments:
Cost Market
5,000 common shares of Heat Corp. $80,000 $69,500
10,000 common shares of Celtics Ltd. 91,000 92,500
$171,000 $162,000
All the securities had been purchased in 2020. In 2021, 76ers completed the following securities transaction:
Apr 1 Bought 300 common shares of Bucks Corp. @ $50 each, plus fees of $550.
On December 31, 2021, the market value of 76ers portfolio of trading equity securities appeared as follows:
Market
5,000 common shares of Heat Corp. $78,000
10,000 common shares of Celtics Ltd. 99,250
300 common shares of Bucks Corp. 12,750
$190,000
Instructions
Assuming 76ers uses the FVNI model, prepare the journal entries for:
- The 2020 year-end adjusting entry, with separate accounts for each investment, (3 marks)
- The acquisition of the Bucks Corp. shares, (3 marks)
- The 2021 year-end adjusting entry. with separate accounts for each investment. (7 marks)
Please answer all parts.