*Problem 9-5 Novak Ltd. had the following investment portfolio at January 1, 2020: Investment Quantity Earl Corp. 940 Josie Corp. 850 Asher Corp. 500 Cost per Share $14.70 19.70 9.40 Fair Value at Dec. 31, 2019 $11.90 16.90 6.90 1. During 2020, the following transactions took place: On March 1, Josie Corp. paid a $2 per share dividend. On April 30, Novak sold 300 shares of Asher Corp. for $9.70 per share. 3. On May 15, Novak purchased 200 more Earl Corp. shares at $15.70 per share. At December 31, 2020, the shares had the following market prices per share: Earl Corp. $16.70; Josie Corp. $18.70; and Asher Corp. $7.70. 2. 4. During 2021, the following transactions took place: 5. On February 1, Novak sold the remaining Asher Corp. shares for $6.70 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 following market prices per share: Earl Corp. $18.70 Corp. $20.70. Josie Your answer is partially correct. Try again. Assuming that Novak 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 o for the amounts. Record journal entries in the order presented in the problem.) Date Account Titles and Explanation Debit Credit 2020 T1700 TMar. 1 Cash Dividend Revenue 371700 TApr. 30 TFV-OCI Investments 840 1840) Unrealized Gain or Loss - OCI (To adjust to fair value at date of disposal) TApr 30 Cash 12910 12910 FV-OCI Investments (To record disposal) Apr. 30 Gain or Loss in Value of In X Gain or Loss in Value of In (To reclassify holding gain) TMay 15 TFV-OCI Investments 3140 40 Tash TR140 2021 1200 Feb. 1 Unrealized Gain or Loss - OCI FV-OCI Investments (To adjust to fair value at date of disposal) 200 Feb. 1 Cash 11340 37340 FV-OCI Investments (To record disposal) Feb. 1] FV-OCI Investments 1540 X 1540) FV-OCI Investments (To reclassify holding loss) Mar. 1 Cash bividend Revenue Dec. 21 Dividends Receivable 1700 7700 3977 13420) 373420 13980 Dividend Revenue Dec. 31 TFV-OCI Investments Unrealized Gain or Loss - OCI 13980 Prepare the relevant parts of Novak 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 a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) 2021 Novak Ltd. Statement of Financial Position 2020 TLong-Term Investments Investments, at Fair Value with Gains and Losses in OCI $ TShareholders' Equity $ TAccumulated other Comprehensive Income Retained Earnings Novak Ltd. Statement of Comprehensive Income 2020 2021 Gross Profit/ (Loss) $X $X Operating Expenses Titems that may not be reclassified subsequently to net income THolding Gains on FV-OCI Investments during X lyear 6402 3980 SX + $X + Comprehensive Income 6402 3980 Novak Ltd. Statement of Changes in Accumulated Other Comprehensive Income 2020 2021 TAccumulated other comprehensive Income / (Loss), January 1 TOther Comprehensive Income / (Loss) (Reclassification adjustmen MODO TAccumulated other Comprehensive Income / (Loss), December 31 Your answer is partially correct. Try again. Assume that Novak 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 X Net Income The net income Twould not change. Question Attempts: 6 of 15 used *Problem 9-5 Novak Ltd. had the following investment portfolio at January 1, 2020: Investment Quantity Earl Corp. 940 Josie Corp. 850 Asher Corp. 500 Cost per Share $14.70 19.70 9.40 Fair Value at Dec. 31, 2019 $11.90 16.90 6.90 1. During 2020, the following transactions took place: On March 1, Josie Corp. paid a $2 per share dividend. On April 30, Novak sold 300 shares of Asher Corp. for $9.70 per share. 3. On May 15, Novak purchased 200 more Earl Corp. shares at $15.70 per share. At December 31, 2020, the shares had the following market prices per share: Earl Corp. $16.70; Josie Corp. $18.70; and Asher Corp. $7.70. 2. 4. During 2021, the following transactions took place: 5. On February 1, Novak sold the remaining Asher Corp. shares for $6.70 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 following market prices per share: Earl Corp. $18.70 Corp. $20.70. Josie Your answer is partially correct. Try again. Assuming that Novak 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 o for the amounts. Record journal entries in the order presented in the problem.) Date Account Titles and Explanation Debit Credit 2020 T1700 TMar. 1 Cash Dividend Revenue 371700 TApr. 30 TFV-OCI Investments 840 1840) Unrealized Gain or Loss - OCI (To adjust to fair value at date of disposal) TApr 30 Cash 12910 12910 FV-OCI Investments (To record disposal) Apr. 30 Gain or Loss in Value of In X Gain or Loss in Value of In (To reclassify holding gain) TMay 15 TFV-OCI Investments 3140 40 Tash TR140 2021 1200 Feb. 1 Unrealized Gain or Loss - OCI FV-OCI Investments (To adjust to fair value at date of disposal) 200 Feb. 1 Cash 11340 37340 FV-OCI Investments (To record disposal) Feb. 1] FV-OCI Investments 1540 X 1540) FV-OCI Investments (To reclassify holding loss) Mar. 1 Cash bividend Revenue Dec. 21 Dividends Receivable 1700 7700 3977 13420) 373420 13980 Dividend Revenue Dec. 31 TFV-OCI Investments Unrealized Gain or Loss - OCI 13980 Prepare the relevant parts of Novak 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 a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) 2021 Novak Ltd. Statement of Financial Position 2020 TLong-Term Investments Investments, at Fair Value with Gains and Losses in OCI $ TShareholders' Equity $ TAccumulated other Comprehensive Income Retained Earnings Novak Ltd. Statement of Comprehensive Income 2020 2021 Gross Profit/ (Loss) $X $X Operating Expenses Titems that may not be reclassified subsequently to net income THolding Gains on FV-OCI Investments during X lyear 6402 3980 SX + $X + Comprehensive Income 6402 3980 Novak Ltd. Statement of Changes in Accumulated Other Comprehensive Income 2020 2021 TAccumulated other comprehensive Income / (Loss), January 1 TOther Comprehensive Income / (Loss) (Reclassification adjustmen MODO TAccumulated other Comprehensive Income / (Loss), December 31 Your answer is partially correct. Try again. Assume that Novak 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 X Net Income The net income Twould not change. Question Attempts: 6 of 15 used