Pina Colada Corp., a Canadian public corporation, reported the following on its December 31, 2016 statement of financial position: Investment in Hysenaj Ltd. shares, at FV-NI: 7,100 shares, original cost of $279,740 Investment in Growthpen Corp. shares, at FV-OCI, without recycling: 3,600 shares, original cost of $25,920 Investment in Metal Corp. bonds, at amortized cost $520,000 face value, 6% bonds, due November 1, 2021, interest paid each May 1 and November 1 to yield 5% (See Note 1) Interest receivable on Metal Corp. bonds Shareholders' equity Accumulated other comprehensive income: unrealized loss on Growthpen Corp. shares $348,610 23,320 542,076 5,200 2,600 Additional information: 1. The bond amortization table used by Pina Colada Corp. for this bond indicated the following for the November 1, 2016 interest received and interest income: Premium alance, Bond Interest Interest Received Income Amortization Carryng Amount Date Nov. 1/16 15,600 13,618 Hint: On December 31, 2016, Pina Colada's accountant pencilled in the following numbers below the November 1, 2016 line: 1,982 542,753 Interest Interest Received Income Amortization Carryng Amount Premium Balance, Bond Date Dec. 31/16 adjustment 5,200 4,523 677 542,076 2. Pina Colada Corp. follows the provisions of IFRS 9 for its FV-NI and FV-oCI investments, using the FV-NI method for investments acquired for trading purposes, and the FV-OCI method for investments that it intends to hold for their growth potential. For the FV-oCI investments, transaction costs are capitalized, and when gains and losses are realized, they are reclassified to retained earnings. Interest and dividends are not reported separately from other investment income for investments held for trading and accounted for at FV-NI The following transactions and events took place during the company's year ended December 31, 2017: Jan. Jan. 2 Sold 900 Growthpen shares for $8.70 per share less a $270 commission. (Hint: Remember that only 25% of the holdings have been sold.) 3 Purchased 4,500 of the 15,000 outstanding shares of Lloyd Corp. for $292,500. Pina Colada Corp. and Lloyd Corp. managements have worked together on joint projects in the past and Lloyd often asks Pina Colada management for advice on operational and financing issues that Lloyd faces. A review of Lloyd's financial statements on the date these shares were acquired indicated total assets of $1,430,000 and total liabilities of $758,000. In addition, the company has an internally developed patent that has a fair value of $58,500, but is unrecorded in the accounts. The patent is likely to have value to Lloyd for another six yearsS Mar. 18 Received a $1 per share dividend on Growthpen shares and a $3 per share dividend on Hysenaj shares May 1 Received the semi-annual interest on the Metal Corp. bonds June 30 Sold the Metal Corp. bonds for 102 plus accrued interest. (Hint: Start by making an entry to accrue the interest income on the bonds to June 30, then make an entry to record the cash received.) Sept. 17 Sold all the shares of Hysenaj for $56 per share. Paid a 1% commission Oct. 15 Received a dividend of $1 per share on the Lloyd Corp. shares Dec. 31 Lloyd Corp. management reported that the company earned a net income of $48,250 for its year ended December 31, 2017 Dec. 31 The fair values of the remaining investments are: Growthpen Corp. $7 per share; Lloyd Corp. $217,960 Prepare all required entries during 2017 and at December 31, 2017, if necessary, for the transactions and adjustments relating to the investments in the Hysenaj Corp shares. (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 0 for the amounts. Round answers to 0 decimal places, e.g, 5,275.) DateAccount Titles and Explanation Debit Credit Prepare all required entries during 2017 and at December 31, 2017, if necessary, for the transactions and adjustments relating to the investments in the Metal Corp. bonds (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 0 for the amounts. Round answers to o decimal places, e.g. 5,275.) Date Account Titles and Explanation Debit Credit (To record interest on investment.) Jun. 30 (To record sale of investment.) Prepare all required entries during 2017 and at December 31, 2017, if necessary, for the transactions and adjustments relating to the investments in the Lloyd Corp. shares (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 0 for the amounts. Round answers to 0 decimal places, e.g. 5,275.) Date Account Titles and Explanation Debit Credit (To record the share in net income.) (To record amortization of patent.) Determine the December 31, 2017 balances in each asset account related to the investments and in accumulated other comprehensive income. Prepare a partial statement of financial position, indicating where and how each of the investments and AOCI would be reported. (Round answers to 0 decimal places, e.g. 5,275. Enter negative amounts using either a negative sign preceding the number e.g.-45 or parentheses e.g. (45).) Pina Colada Corp Partial Statement of Financial Position SHOW LIST OF ACCOUNTS Determine the December 31, 2017 balances in each income and OCI account related to the investments. Assuming that Pina Colada Corp. reports a net income of $1,424,200, including all revenue, expense, gain, and loss accounts that are correctly included in net income, prepare a statement of comprehensive income for Pina Colada's year ended December 31, 2017. (Round answers to 0 decimal places, e.g. 5,275. Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) Pina Colada Corp. Statement of Comprehensive Income Pina Colada Corp., a Canadian public corporation, reported the following on its December 31, 2016 statement of financial position: Investment in Hysenaj Ltd. shares, at FV-NI: 7,100 shares, original cost of $279,740 Investment in Growthpen Corp. shares, at FV-OCI, without recycling: 3,600 shares, original cost of $25,920 Investment in Metal Corp. bonds, at amortized cost $520,000 face value, 6% bonds, due November 1, 2021, interest paid each May 1 and November 1 to yield 5% (See Note 1) Interest receivable on Metal Corp. bonds Shareholders' equity Accumulated other comprehensive income: unrealized loss on Growthpen Corp. shares $348,610 23,320 542,076 5,200 2,600 Additional information: 1. The bond amortization table used by Pina Colada Corp. for this bond indicated the following for the November 1, 2016 interest received and interest income: Premium alance, Bond Interest Interest Received Income Amortization Carryng Amount Date Nov. 1/16 15,600 13,618 Hint: On December 31, 2016, Pina Colada's accountant pencilled in the following numbers below the November 1, 2016 line: 1,982 542,753 Interest Interest Received Income Amortization Carryng Amount Premium Balance, Bond Date Dec. 31/16 adjustment 5,200 4,523 677 542,076 2. Pina Colada Corp. follows the provisions of IFRS 9 for its FV-NI and FV-oCI investments, using the FV-NI method for investments acquired for trading purposes, and the FV-OCI method for investments that it intends to hold for their growth potential. For the FV-oCI investments, transaction costs are capitalized, and when gains and losses are realized, they are reclassified to retained earnings. Interest and dividends are not reported separately from other investment income for investments held for trading and accounted for at FV-NI The following transactions and events took place during the company's year ended December 31, 2017: Jan. Jan. 2 Sold 900 Growthpen shares for $8.70 per share less a $270 commission. (Hint: Remember that only 25% of the holdings have been sold.) 3 Purchased 4,500 of the 15,000 outstanding shares of Lloyd Corp. for $292,500. Pina Colada Corp. and Lloyd Corp. managements have worked together on joint projects in the past and Lloyd often asks Pina Colada management for advice on operational and financing issues that Lloyd faces. A review of Lloyd's financial statements on the date these shares were acquired indicated total assets of $1,430,000 and total liabilities of $758,000. In addition, the company has an internally developed patent that has a fair value of $58,500, but is unrecorded in the accounts. The patent is likely to have value to Lloyd for another six yearsS Mar. 18 Received a $1 per share dividend on Growthpen shares and a $3 per share dividend on Hysenaj shares May 1 Received the semi-annual interest on the Metal Corp. bonds June 30 Sold the Metal Corp. bonds for 102 plus accrued interest. (Hint: Start by making an entry to accrue the interest income on the bonds to June 30, then make an entry to record the cash received.) Sept. 17 Sold all the shares of Hysenaj for $56 per share. Paid a 1% commission Oct. 15 Received a dividend of $1 per share on the Lloyd Corp. shares Dec. 31 Lloyd Corp. management reported that the company earned a net income of $48,250 for its year ended December 31, 2017 Dec. 31 The fair values of the remaining investments are: Growthpen Corp. $7 per share; Lloyd Corp. $217,960 Prepare all required entries during 2017 and at December 31, 2017, if necessary, for the transactions and adjustments relating to the investments in the Hysenaj Corp shares. (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 0 for the amounts. Round answers to 0 decimal places, e.g, 5,275.) DateAccount Titles and Explanation Debit Credit Prepare all required entries during 2017 and at December 31, 2017, if necessary, for the transactions and adjustments relating to the investments in the Metal Corp. bonds (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 0 for the amounts. Round answers to o decimal places, e.g. 5,275.) Date Account Titles and Explanation Debit Credit (To record interest on investment.) Jun. 30 (To record sale of investment.) Prepare all required entries during 2017 and at December 31, 2017, if necessary, for the transactions and adjustments relating to the investments in the Lloyd Corp. shares (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 0 for the amounts. Round answers to 0 decimal places, e.g. 5,275.) Date Account Titles and Explanation Debit Credit (To record the share in net income.) (To record amortization of patent.) Determine the December 31, 2017 balances in each asset account related to the investments and in accumulated other comprehensive income. Prepare a partial statement of financial position, indicating where and how each of the investments and AOCI would be reported. (Round answers to 0 decimal places, e.g. 5,275. Enter negative amounts using either a negative sign preceding the number e.g.-45 or parentheses e.g. (45).) Pina Colada Corp Partial Statement of Financial Position SHOW LIST OF ACCOUNTS Determine the December 31, 2017 balances in each income and OCI account related to the investments. Assuming that Pina Colada Corp. reports a net income of $1,424,200, including all revenue, expense, gain, and loss accounts that are correctly included in net income, prepare a statement of comprehensive income for Pina Colada's year ended December 31, 2017. (Round answers to 0 decimal places, e.g. 5,275. Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) Pina Colada Corp. Statement of Comprehensive Income