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 Debit Credit Date 2020 Mar. 1 I Cash cash T Dividend Revenue 1800 EFV-OCI Investments X ERRE Unrealized Gain or Loss (To adjust to fair value at date of disposal) 1 Apr. 30 (Cash I 3030 FV-OCI Investments (To record disposal) 7 Apr. 30 Gain on Disposal of Investmer Gain on Disposal of Investmer x 840 FV-OCI Investments (To reclassify holding gain) 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. 2020 2021 Net Income i ........ The net income would not , change 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 Debit Credit Date 2020 Mar. 1 I Cash cash T Dividend Revenue 1800 EFV-OCI Investments X ERRE Unrealized Gain or Loss (To adjust to fair value at date of disposal) 1 Apr. 30 (Cash I 3030 FV-OCI Investments (To record disposal) 7 Apr. 30 Gain on Disposal of Investmer Gain on Disposal of Investmer x 840 FV-OCI Investments (To reclassify holding gain) 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. 2020 2021 Net Income i ........ The net income would not , change
