Scribd Logo
Upload

Welcome to Scribd!

  • 137 views

    Audit

    Uploaded by

    Shai
    The document summarizes investment securities held as of December 31, 2018 and transactions that occurred during 2019. It includes shares/bonds held as trading securities and at fair value through other comprehensive income (FVTOCI), along with their costs and market values. In 2019, various shares were sold, interest was received on bonds, and reclassifications were made between categories. Calculations are provided for realized and unrealized gains/losses on securities.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd

    Audit

    Uploaded by

    Shai
    137 views6 pages
    The document summarizes investment securities held as of December 31, 2018 and transactions that occurred during 2019. It includes shares/bonds held as trading securities and at fair value through other comprehensive income (FVTOCI), along with their costs and market values. In 2019, various shares were sold, interest was received on bonds, and reclassifications were made between categories. Calculations are provided for realized and unrealized gains/losses on securities.

    Original Description:

    Xxxx

    Copyright

    © © All Rights Reserved

    Available Formats

    XLSX, PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    The document summarizes investment securities held as of December 31, 2018 and transactions that occurred during 2019. It includes shares/bonds held as trading securities and at fair value through other comprehensive income (FVTOCI), along with their costs and market values. In 2019, various shares were sold, interest was received on bonds, and reclassifications were made between categories. Calculations are provided for realized and unrealized gains/losses on securities.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Download as xlsx, pdf, or txt
    137 views6 pages

    Audit

    Uploaded by

    Shai
    The document summarizes investment securities held as of December 31, 2018 and transactions that occurred during 2019. It includes shares/bonds held as trading securities and at fair value through other comprehensive income (FVTOCI), along with their costs and market values. In 2019, various shares were sold, interest was received on bonds, and reclassifications were made between categories. Calculations are provided for realized and unrealized gains/losses on securities.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Download as xlsx, pdf, or txt
    You are on page 1of 6

    Problem 1

    Investment Securities as of December 31, 2018

    Shares/Bonds Cost Market


    Trading Securities
    Anthony, Inc. 9,600 144,000 184,000
    Belanger, Inc. 16,000 432,000 288,000
    10% 200,000 bonds (semi-annual, Jan. 1 & Jul.1) 158,400 163,440

    Investment at FVTOCI
    Raneses, Inc. 32,000 1,376,000 1,440,000
    Antonette, Inc. 240,000 6,240,000 5,840,000
    Elcana, Inc. 80,000 960,000 1,280,000

    Amortized Cost Cost Carrying Amount


    12%, 2,000,000 bonds (annual, Dec. 31) 1,900,000 1,926,000

    During 2019, the following transactions occurred:

    January 1 Received interest on the Alejandra, Inc., bonds

    Cash 10,000
    Interest Receivable 10,000

    March 1 Sold 8,000 shares of Belanger, Inc., shares for P 152,000

    Cash 152,000
    Trading Securities - Belanger, Inc. 144,000
    Gain on sale of Trading Securities 8,000

    May 15 Sold 3,200 shares of Elcana, Inc., for P 15 per share

    Cash 48,000
    Retained Earnings 3,200
    FVTOCI Securities 51,200

    Fair Value - Elcana, Inc. 1,280,000


    Cost - Elcana, Inc. 960,000
    Unrealized Gain - OCI 320,000
    UG - OCI portion of 3,200 shares 12,800
    Unrealized Gain - OCI 12,800
    Retained Earnings 12,800

    July 1 Received interest of the Alejandara, Inc. Bonds

    Cash 10,000
    Interest Income 10,000

    December 31 Received interest on the Lester Ryan Company Bonds

    Cash 240,000
    Interest Income 240,000

    Face Value of Lester Ryan Bonds 2,000,000


    Cost of Lester Ryan Bonds 1,900,000
    Discount on Bonds Payable 100,000

    Effective Interest Method


    Date Interest Income Interest Rec. Amortization Carrying Amount
    1/2/2018 14% 1,900,000
    12/31/2018 266,000 240,000 26,000 1,926,000
    12/31/2019 269,640 240,000 29,640 1,955,640

    Investment at Amortized Cost 29,640


    Interest Income 29,640

    FVTOCI Securities 2,020,000


    Investment at Amortized Cost 1,955,640
    Gain on Reclassification of Invest. 64,360

    The market values of the shares and the bonds on December 31, 2019, are as follows:

    Trading MV MV - 12/31/19 MV - 12/31/18 Unrealized Gain (Loss)


    Anthony, Inc. 22 per share 211,200 184,000 27,200
    Belanger, Inc. 15 per share 120,000 144,000 (24,000)
    Alejandra 151,200 163,440 (12,240)
    (9,040)

    Unrealized Loss - Profit or Loss 9,040


    Trading Securities 9,040

    OCI Securities MV MV - 12/31/19 MV - 12/31/18 Unrealized Gain (Loss)


    Raneses, Inc. 42 per share 1,344,000 1,440,000 (96,000)
    Antonette, Inc. 28 per share 6,720,000 5,840,000 880,000
    Elcana, Inc. 18 per share 1,382,400 1,228,800 153,600
    Lester Ryan Company 2,020,000 - -

    Raneses, Inc.
    Unrealized Gain - OCI 64,000
    Unrealized Loss - OCI 32,000
    FVTOCI Securities 96,000

    Antonette, Inc. & Elcana, Inc.


    FVTOCI Securities 1,033,600
    Unrealized Gain - OCI 1,033,600

    To record accrued interest on Alejandra Bonds


    Interest Receivable 10,000
    Interest Income 10,000

    1. Gain or loss on sale of 8,000 Belanger, Inc. shares on March 1, 2019?


    2. Realized gain or loss on sale of 3,200 Elcana, Inc. shares on May 15, 2019?
    3. Total interest income for the year 2019?
    4. The amount that should be reported as unrealized gain in the statement of changes in
    equity regarding the transfer of Lester Ryan Bonds to investment at FVTOCI?
    5. Carrying Value Trading Securities
    OCI Securities
    ng Amount
    ng Amount

    ized Gain (Loss)

    ized Gain (Loss)


    8,000 gain
    Zero
    289,640

    Zero
    482,400
    11,466,400

    You might also like