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There are two questions in the attach file, hope someone can help me sovle it, thank you! Financial Instruments Problem 1 The Cooper Corporation has
There are two questions in the attach file, hope someone can help me sovle it, thank you!
Financial Instruments Problem 1 The Cooper Corporation has the following investments in the shares of other corporations as at December 31, 20x3: Company Hamalainen Corp. Herron Inc. Robertson Company Original Cost Carrying Value $250,000 300,000 80,000 $630,000 $230,0 340,000 00 88,000 $658,000 F air Val $190,000 375,000 95,000 $660,000 The following transactions occurred during 20x4: Hamalainen was sold for $180,000 less $4,300 of brokerage fees Robertson was sold for $103,000 less $3,200 of brokerage fees Majaess Corp shares were purchased for $340,000 plus $6,700 of brokerage fees At the end of the year, the fair value of Herron and Majaess was $410,000 and $280,000 respectively. Required - Prepare all journal entries for the year assuming that the share are classified as: a) FVTPL b) FVTOCI. The net income for the year is $1,200,000. Prepare the bottom part of the statement of comprehensive income. Reconcile the opening balance in the A*OCI account to the ending balance. 2 Problem 2 On December 31, 20x0, Cassidy Corporation purchased bonds of another company. The bonds had a face value of $400,000, mature on December 31, 20x10, and pay a coupon rate of 3% semi-annually on June 30 and Dec 31. The bonds were yielding 3.3% on the date of purchase. On December 31, 20x1 and 20x2 the bonds are trading at 95 and 98 respectively. On January 2, 20x3, the bonds are sold at 99. Required - Prepare all journal entries for December 31, 20x0 through January 2, 20x3 on the assumption that the securities are classified as... a. Amortized Cost b. FVTOCIStep by Step Solution
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