Topic 6 Solutions Q3-8 - Aug 9 Investment in FVTPL Cash(300...

Info icon This preview shows pages 1–4. Sign up to view the full content.

View Full Document Right Arrow Icon
6 Aug. 9 Investment in FVTPL 10,800 Cash (300 x $36) 10,800 24 Cash (100 x $30) 3,000 Investment in FVTPL 2,800 Gain on Sale of FVTPL 200 Sept. 17 Investment in FVTPL 11,000 Cash (500 x $22) 11,000 30 Unrealized Loss on FVTPL 350 Investment in FVTPL 350 * * Security Cost 30/9/07 Fair Value Cumulative Change in Fair Value $ $ $ 300 ordinary shares in P Company 10,800 10,950 150 500 ordinary shares in U Company 11,000 10,500 (500 ) 21,800 21,450 (350 ) (For FVTPL, the direct method is more convenient.) (b) $ Dividend revenue 150 Loss on sale of FVTPL (600) Gain on sale of FVTPL 200 Unrealized loss on FVTPL (350) (c) Current Assets Financial Assets at Fair Value Through Profit or Loss $21,450
Image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
7 Question 4 (1) (a) Reynolds original purchase 3,000 shares bonus shares 300 shares total holding 3,300 shares Total cost of $165,000 ÷ Total shares of 3,300 = $50 cost per share Sold 300 shares Dr ($) Cr ($) Correct entry: Cash (300 × $70) 21,000 Available-for-Sale Investments 15,000 Gain on Sale of Investments 6,000 Entry made: Cash 21,000 Available-for-Sale Investments 21,000 Correction: Available-for-Sale Investments 6,000 Gain on Sale of Investments 6,000 (b) Unruh should record cash dividend as dividend income. Correct entry: Cash 6,000 Dividend Revenue 6,000 Entry made: Cash 6,000 Available-for-Sale Investments 6,000 Correction: Available-for-Sale Investments 6,000 Dividend Revenue 6,000
Image of page 2
8 (2)
Image of page 3

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Image of page 4
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern