Problem 9-4 Sheffield Corp. has the following securities (all purchased in 2017) in its investment portfolio on December 31, 2017: 2,600 Anderson Corp. common shares, which cost $49,660; 10,000 Munter Ltd. common shares, which cost $646,000; and 6,700 King Corp. preferred shares, which cost $278,720. Their fair values at the end of 2017 were as follows: Anderson Corp. $49,680; Munter Ltd. $635,150; and King Corp. $278,070 In 2018, Sheffield completed the following transactions: 1. 2. On January 15, sold 2,600 Anderson common shares at $22 per share less fees of $2,810 On April 17, purchased 1,350 Castle Ltd. common shares at $33.70 per share plus fees of $1,920 The company adds transaction costs to the cost of acquired investments and deducts them from cash received on the sale of investments. On December 31, 2018, the fair values per share of the securities were as follows: Munter $67; King $41; and Castle $31. Sheffield's accounting supervisor tells you that all these securities have fair values that can be readily determined, but the company is not likely to actively trade them. Management accounts for them using the FV-OCI method without recycling. Ignore income taxes. Prepare the entries for the sale of the Anderson Corp. investment on January 15, 2018. (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.) Date Account Titles and Explanation Debit Credit Jan. 15 (To record holding gain or loss.) Jan. 15 (To record sale of shares.) Jan. 15 (To record gain or loss on sale.) Prepare the entry to record the Castle Ltd. share purchase on April 17, 2018. (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.) Date Account Titles and Explanation Debit Credit Apr. 17 SHOW LIST OF ACCOUNTS LINK TO TEXT LINK TO TEXT Calculate the unrealized gains or losses and prepare any required adjusting entry for Sheffield Corp. on December 31, 2018. (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.) Date Account Titles and Explanation Credit Dec. 31 Sheffield Corp Statement of Comprehensive Income $X Sheffield Corp Statement of Changes in Accumulated Other Comprehensive Income SHOW LIST OF ACCOUNTS LINK TO TEXT LINK TO TEXT Sheffield Corp.'s shareholders carefully watch the company's reported earnings per share (EPS). If Sheffield used an accounting policy of FV-OCI with recycling (as allowed under IAS 39) and the company had 10,000 shares outstanding, would this make the EPS any different than it would be with the policy indicated above (that is, without recycling)? . Sheffield's EPS change If so, by what amount per share? (Round answer to 2 decimal places, e.g. 52.76. Do not leave answer field blank. Enter 0 for amounts.) Effect on EPS share
