XIF | C:/Users/ J& IH/Downloads/2001Assmt7F20.pdf Dec 31, 20x4 Feb 15, 20x5 Opening balance Purchase Shurman Inc. shares - classified as $1,653,982 Mar 30, 20x5 FVTOCI; net of $4,500 of brokerage fees Sold Bailey Inc. shares; net of $3,600 of 360,000 Sep 10, 20x5 brokerage fees Sold Alemari Corp shares; net of $900 of (335,000) brokerage fees Dec 31, 20x5 Ending balance (125,000) $1,553,982 The opening balance was made up of the following investments: Jacob Inc. shares (FVTOCI) - original cost = $200,000 $280,000 Bailey Inc. shares (FVTOCI) - original cost = $350,000 310,000 Ventura Inc. shares (FVTOCI) - original cost = $190,000 220,000 Pacebo Inc. shares (FVTPL) - original cost = $150,000 110,000 Alemari Corp. shares (FVTPL) - original cost = $80,000 95,000 Mullin Corp. bonds (Amortized Cost) 208,982 Peric Corp. bonds (FVTOCI) 430,000 $1,653,982 The Mullin Corporation bonds were purchased on June 30, 20x4 for $209,786. The bonds mature on December 31, 20x9, have a face value of $200,000 and a coupon rate of 5%. The coupon payments are made on June 30 and December 31 of every year. The coupon payments received in 20x5 were credited to revenue. The Peric Corporation bonds were purchased on January 2, 20x4 for $403,052. The bonds mature on December 31, 20x7, have a face value of $500,000 and a coupon rate of 55Cco.pat mature on December 3 1, ZUXy, have a face value of $20U,YOU and a coupon rate Of 3 70. The coupon payments are made on June 30 and December 31 of every year. The coupon payments received in 20x5 were credited to revenue. The Peric Corporation bonds were purchased on January 2, 20x4 for $403,052. The bonds mature on December 31, 20x7, have a face value of $500,000 and a coupon rate of H N 4%. The coupon payments are made on June 30 and December 31 of every year. The coupon payments received in 20x5 were credited to revenue. Fair values at December 31, 20x5 are as follows: Jacob Inc. $265,000 Ventura Inc. 215,000 Placebo Inc. 135,000 Mullin Corp. 215,500 Peric Corp. 395,000 Shurman Inc. 210,000 $1,435,500odds/ 200 1Assmt/ F20.pdf + V Q N 4%. The coupon payments are made on June 30 and December 31 of every year. The coupon payments received in 20x5 were credited to revenue. Fair values at December 31, 20x5 are as follows: Jacob Inc. Ventura Inc. $265,000 Placebo Inc. I 215,000 135,000 Mullin Corp. 215,500 Peric Corp. 395,000 Shurman Inc. 210,000 $1,435,500 The unadjusted trial balance as at December 31, 20x5 shows a credit balance of $76, 135 in the A*OCI-Revaluation Gain on FVTOCI Investments account. Required - The CFO would like to create separate accounts for FVTPL, FVTOCI and Amortized Cost Investments, i.e. three accounts instead of one. Prepare the necessary adjusting journal entries at December 31, 20x5 relating to the company's investments. In addition, calculate the adjusted ending balance in the A*OCI-Revaluation Gain on FVTOCI Investments account as at Dec. 31, 20x5. 60 C
