Problem 1 In September 30, 2020, Reval 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 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 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 Prepare a Statement of Financial Position for 2021 Problem 3 Flowers Inc has provided you with the following information about its transactions in February 2021 1) Acquired new inventory on credit $45,000 2) Took out a 2 year loan for $200,000 on February 1 Annual interest is 5 , payable at the loan maturity date (February 1 st , 2023) 3) Prepaid on February 1 st the rent of February, March and April 2021 $4,000 per month 4) Invested excess cash in shares of company CCC 3,000 shares for $11 per share The investment is classified as Fair Value Through Profit and Loss (FVTPL) 5) Received $16,000 cash in advance from a customer 6) Based on a physical inventory count, it determined that the inventory left at the end of February amounts to $29,000 Inventory at the beginning of February was $35,000 7) At the end of February, the shares of company CCC were trading at $13 per share 8) Delivered 60 of the merchandise due to the customer in transaction 5 9) The last pay in February is on Tuesday the 23 rd for the 2 weeks ending on and including that day It amounted to $20,000 Flowers Inc s employees do not work the weekends February has 28 days Prepare all the journal and adjusting entries required at the end of February 2021, assuming Flowers Inc prepares monthly financial statements

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Problem 1 In September 30, 2020, Reval Ltd. invested excess cash in the shares of Adam Company. It acquired 2,000 shares at $45 each. On

Problem 1

In September 30, 2020, Reval 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.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

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

Prepare a Statement of Financial Position for 2021.

Problem 3

Flowers Inc. has provided you with the following information about its transactions in February 2021:

1) Acquired new inventory on credit: $45,000.

2) Took out a 2-year loan for $200,000 on February 1. Annual interest is 5%, payable at the loan maturity date (February 1^st, 2023).

3) Prepaid on February 1^st the rent of February, March and April 2021: $4,000 per month.

4) Invested excess cash in shares of company CCC: 3,000 shares for $11 per share. The investment is classified as Fair Value Through Profit and Loss (FVTPL)

5) Received $16,000 cash in advance from a customer.

6) Based on a physical inventory count, it determined that the inventory left at the end of February amounts to $29,000. Inventory at the beginning of February was $35,000.

7) At the end of February, the shares of company CCC were trading at $13 per share.

8) Delivered 60% of the merchandise due to the customer in transaction 5.

9) The last pay in February is on Tuesday the 23^rd for the 2 weeks ending on and including that day. It amounted to $20,000. Flowers Inc.s employees do not work the weekends. February has 28 days. Prepare all the journal and adjusting entries required at the end of February 2021, assuming Flowers Inc. prepares monthly financial statements.