Problem 9-5 Bridgeport Ltd. had the following investment portfolio at January 1, 2020: Investment Quantity Earl Corp. 930 Josie Corp. 900 Asher Corp. 500 Cost per Share $15.10 20.10 8.00 Fair Value at Dec. 31, 2019 $10.50 15.50 7.30 During 2020, the following transactions took place: 1. On March 1, Josie Corp. paid a $2 per share dividend. 2. On April 30, Bridgeport sold 300 shares of Asher Corp. for $10.10 per share. 3. On May 15, Bridgeport purchased 200 more Earl Corp. shares at $16.10 per share. 4. At December 31, 2020, the shares had the following market prices per share: Earl Corp. $17.10; Josie Corp. $19.10; and Asher Corp. $8.10. During 2021, the following transactions took place: 5. On February 1, Bridgeport sold the remaining Asher Corp. shares for $7.10 per share. 6. On March 1, Josie Corp. paid a $2 per share dividend. 7. On December 21, Earl Corp. declared a cash dividend of $3 per share to be paid in the next month. 8. At December 31, 2021, the shares had the following market prices per share: Earl Corp. $19.10 and Josie Corp. $21.10. Your answer is partially correct. Try again. Assuming that Bridgeport Ltd. is a publicly accountable enterprise that accounts for its investment portfolio at FV-OCI (with no recycling to net income), prepare journal entries to record all of the 2020 and 2021 transactions and year-end events. (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. Record journal entries in the order presented in the problem.) Account Titles and Explanation Credit M Date Mar. 1 Cash 2020 Apr. 30 Apr. 30 Apr. 30FV-OCI Investments Dividend Revenue X*** www X...... Unrealized Gain or Loss wwwwwwwwwwwwwwwww (To adjust to fair value at date of disposal) Cash FV-OCI Investments (To record disposal) X Gain on Disposal of Investmer wwwwwwww X......... FV-OCI Investments (To reclassify holding gain) M x Debit 1800 210 3030 840 x x 1800 210 wwwwww 3030 840 |> May 15 TFV-OCI Investments Dec. 31 Feb. 1 Feb. 1 Feb. 1 (To reclassify holding gain) 2021 Cash Unrealized Gain or Loss - OCI Retained Earnings FV-OCI Investments Unrealized Gain or Loss - (To adjust to fair value at date of disposal) Cash FV-OCI Investments (To record disposal) Loss on Disposal of Investmer FV-OCI Investments (To reclassify holding loss) 3220 160 1620 2000 3220 160 1620 2000 Feb. 1 Feb. 1 Mar. 1 (lo adjust to fair value at date of disposal) Dec. 31 Cash FV-OCI Investments (To record disposal) Loss on Disposal of Investmer FV-OCI Investments (To reclassify holding loss) Cash Dividend Revenue Dec. 21 Dividends Receivable Dividend Revenue FV-OCI Investments Unrealized Gain or Loss - OCI 1620 2000 1800 3390 1620 2000 1800 3390 Prepare the relevant parts of Bridgeport Ltd.'s 2021 and 2020 comparative statements of financial position, statements of comprehensive income, and statements of changes in equity (accumulated other comprehensive income portion), and income statement where applicable, to show how the investments and related accounts are reported. (Enter negative amounts using either negative sign preceding the number e.g. -45 or parentheses e.g. (45).) Long-Term Investments. M x.. Investments, at Fair Value with Gains and Losses in OCI Total Shareholders' Equity Accumulated other Comprehensive Income Bridgeport Ltd. Statement of Financial Position Retained Earnings X 2020 2021 x M x Gross Profit/ (Loss) Operating Expenses Net Income /(Loss) (Includes Dividend Revenue) Holding Gains on FV-OCI Investments during year Comprehensive Income Accumulated other Comprehensive Income /(Loss), January 1 Holding Loss on FV-OCI Investments during year ***** Brageport Ltd. Statement of Comprehensive Income Gain/ (Loss) on Sale of Investments in shares Bridgeport Ltd. Statement of Changes in Accumulated Other Comprehensive Income 2020 X Accumulated other Comprehensive Income / (Loss), December 31 $X+ 2020 NOOD x $X $X+ 2021 x 2021 $X Assume that Bridgeport Ltd. is a private enterprise that applies ASPE and accounts for its investment portfolio at cost (that is, the securities do not have actively traded market prices). Determine the amount by which the company's 2020 net income and 2021 net income would differ from the amounts reported under the assumptions given above. 2021 Net Income The net income 2020 would not change.