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Question 8 [25 points] On December 31, 2014, JenCo's year-end, the company had the following temporary investments, all of which were acquired on February 1,
Question 8 [25 points] On December 31, 2014, JenCo's year-end, the company had the following temporary investments, all of which were acquired on February 1, 2014. Investment NO. of shares Original cost Unit market value on December 31, 2014 Runners common shares 500 $56 $53 Cantu Excavating preferred shares 350 $22 $17 In 2015, JenCo completed the following transactions: February 16: Received cash dividends per share: Runners, $0.75; and Cantu Excavating, $0.99. September 18: Sold 130 shares of Cantu Excavating preferred for $18 per share. December 31: Market values of two marketable securities were: Runners common, $51, and Cantu Excavating preferred, $16. JenCo management has determined that these investments should be classified as available for sale and JenCo follows IFRS. The company accounts for sales of its securities as a gain (loss) on sale of investment and dividends received as investment income (loss). Please make sure your final answer(s) are accurate to 2 decimal places. a) Record the following journal entries: the investments purchases and the year-end adjusting entries for 2014 and all required entries for 2015. When recording the journal entries, use the investment asset sub ledger account for each investee company. Enter an appropriate description when entering the transactions in the journal. Dates must be entered in the format dd/mmm (ie. January 15 would be 15/Jan). b) What amount would be reported for other comprehensive income (loss) for 2015? If none, enter a zero for your answer. Other comprehensive income (loss) = $ 3,560 c) Give the asset and equity line items and amounts that would be reported on the 2015 balance sheet. 2015 Available-for-sale investments, at fair value $1,610 Accumulated Other Comprehensive Income (AOCI) $721.50
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