Flint Corp. has the following securities (all purchased in 2023) in its investment portfolio on December 31, 2023: 2,570 Anderson Corp. common shares, which cost $49,344; 10,700 Munter Ltd. common shares, which cost $580,700; and 6,700 King Corp. preferred shares, which cost $256,400. Their fair values at the end of 2023 were as follows: Anderson $50,980; Munter $570,200; and King $256,500. In 2024, Flint completed the following transactions: On January 15, sold 2,570 Anderson common shares at $21 per share less fees of $2,290. 2. On April 17, purchased 1,350 Castle Ltd. common shares at $34.20 per share plus fees of $2,120. 1. The company adds transaction costs to the cost of acquired investments and deducts them from cash received on the sale of investments. On December 31, 2024, the fair values per share of the securities were as follows: Munter $68; King $26; and Castle $22. Flint's accounting supervisor tells you that all these securities have fair values that can be readily determined, but the company is not likely to actively trade them.Management accounts for them using the FV-OCI method without recycling. Any gains or losses are reclassified to Retained Earnings on disposition of the investment. Ignore income taxes.

Live Large Inc. had the following transactions involving non-strategic investments during 2020.  2020     Apr. 1   Paid $119,000 to buy a 90-day term deposit, $119,000 principal amount, 7.0%, dated April 1.   12   Purchased 4,900 common shares of Blue Balloon Ltd. at $22.50. June 9   Purchased 3,700 common shares of Purple Car Corp. at $51.50.   20   Purchased 1,650 common shares of Yellow Tech Ltd. at $16.00. July 1   Purchased for $86,894 a 9.0%, $84,000 Space Explore Inc. bond that matures in eight years when the market interest rate was 8.4%. Interest is paid semiannually beginning December 31, 2020. Live Large Inc. plans to hold this investment until maturity.   3   Received a cheque for the principal and accrued interest on the term deposit that matured on June 30.   15   Received a $0.95 per share cash dividend on the Blue Balloon Ltd. common shares.   28   Sold 2,450 of the Blue Balloon Ltd. common shares at $26.25. Sept. 1   Received a $3.00 per share cash…

SLC Corp. has the following portfolio of securities acquired for trading purposes and accounted for using the FV-NI model. SLC Inc. prepares financial statements every quarter. At Sept 30, 2021, the end of the company’s third quarter, the following information was reported: Investment Cost Fair Value 50,000 Common Shares – Seneca Inc. $215,000 $200,000 3,500 Preferred Shares – Loyalist Inc. $135,000 $140,000 2,000 Common Shares – Algonquin Inc. $180,000 $179,000 Transactions that occurred in the fourth quarter: Oct 8, 2021 The Seneca Shares were sold for $4.30 per share Nov 16, 2021 3,000 common shares of Humber Inc. were purchased at $44.50 per share SLC Inc. pays a 1% commission on purchase and sales of all securities. At the end of the fourth quarter, on December 31, 2021, the fair value of the shares were as follows: Investment Fair Value Loyalist Inc. $106,000 Algonquin Inc. $203,000 Humber Inc. $122,000 Instructions: Prepare the journal entries to record the sale, purchase and…

On December 31, 2020, Dreamer Company reported as Available-for-sale securities: AT Company, 5,000 shares of common stock (a 1% interest) P 125,000 ITS Company, 10,000 shares of common stock (a 2% interest) 160,000 Two Company, 25,000 shares of common stock (a 10% interest) 700,000 Marketable equity securities, at cost P 985,000 Less: Valuation allowance 50,000 Marketable equity securities, at market P 935,000   Additional information: · On May, 2021, AT Company issued a 10% stock dividend when the market price of its stock was P24 per share. · On November 1, 2021, AT Company paid a cash dividend of P0.75 per share. · On August 5, 2021, ITS Company issued to all shareholders, stock rights on the basis of one right per share. Market prices at date of issue were P13.50 per share (ex-right) of stock and P1.50 per rights. Dreamer Company sold all rights on December 16, 2021 for net proceeds of P18,800. · On July 1, 2021, Dreamer Company paid P1,520,000 for 50,000 additional shares of Two…

In March of 2019, Boyet Corporation purchased nontrading equity investments which are irrevocably designated at FV-OCI. On December 31, 2019, the balance in the unrealized gain/(loss) on these securities was P200,000. During 2020, stock FF was sold for P1,100,000. Pertinent data on Dec. 31, 2020 are as follows: Cost Market Value DD P2,100,000 P1,600,000 EE 1,850,000 2,000,000 FF 1,050,000 900,000 In its statement of changes in stockholder's equity for the year 2020, Boyet should report unrealized holding loss at what amount?

Sunland Technologies Inc. held a portfolio of shares and bonds that it accounted for using the fair value through other comprehensive income model at December 31, 2023. This was the first year that Sunland had purchased investments. In part due to Sunland's inexperience, by December 31, 2023, the market value of the portfolio had dropped $29,700 below its original cost. Sunland recorded the necessary adjustments at December 31, 2023, and was determined to hold the securities until the unrealized loss from 2023 could be recovered. By December 31, 2024, Sunland's goal of recovery had been realized and the original portfolio of shares and bonds had a fair market value $6,600 higher than the original purchase costs. Sunland's income tax rate is 30% for all years. Assume that any gains that will ultimately be realized on the sale of the shares and bonds are taxable as ordinary income when they are realized. Sunland applies IFRS. (a) Prepare the journal entries at December 31, 2023, to…

Larkspur Company has the following securities in its investment portfolio on December 31, 2020 (all securities were purchased in 2020): (1) 2,800 shares of Anderson Co. common stock which cost $50,400, (2) 10,800 shares of Munter Ltd. common stock which cost $604,800, and (3) 6,300 shares of King Company preferred stock which cost $270,900. The Fair Value Adjustment account shows a credit of $10,400 at the end of 2020. In 2021, Larkspur completed the following securities transactions. 1. On January 15, sold 2,800 shares of Anderson's common stock at $20 per share less fees of $2,160. 2. On April 17, purchased 900 shares of Castle's common stock at $33 per share plus fees of $2,030. On December 31, 2021, the market prices per share of these securities were Munter $65, King $40, and Castle $25. In addition, the accounting supervisor of Larkspur told you that, even though all these securities have readily determinable fair values, Larkspur will not actively trade these securities because…

Red Company issued shares as consideration for the purchase of inventory on January 1, 2021. The inventory was eventually sold on May 1, 2021. The value of the inventory on January 1, 2021 was P2,500,000 and its value on the date of sale was P2,700,000. The sales proceeds amounted to P3,700,000. The shares issued have a market value of P2,200,000 and a par value of P2,000,000. How much is the gross profit from the sale of the inventory on May 1, 2021?