Exercise 9-11 Bramble Corporation made the following purchases of investments during 2020, the first year in...
Exercise 9-11
Bramble Corporation made the following purchases of investments
during 2020, the first year in which Bramble invested in equity
securities:
| 1. | On January 15, purchased 8,640 shares of Nirmala Corp.’s common shares at $32.20 per share plus commission of $1,902. | |
| 2. | On April 1, purchased 4,800 shares of Oxana Corp.’s common shares at $50 per share plus commission of $3,235. | |
| 3. | On September 10, purchased 6,720 shares of WTA Corp.’s preferred shares at $25.70 per share plus commission of $2,794. |
On May 20, 2020, Bramble sold 2,880 of the Nirmala common shares at
a market price of $34 per share less brokerage commissions of
$2,736. The year-end fair values per share were as follows: Nirmala
$29, Oxana $53, and WTA $27. The chief accountant of Bramble tells
you that Bramble Corporation holds these investments with the
intention of selling them in order to earn short-term profits from
appreciation in their prices and accounts for them using the FV-NI
model.
Assume that Bramble Corporation follows IFRS 9.
A. Prepare the journal entries to record the three investments.
B. Prepare the journal entry for the sale of the 2,880 Nirmala shares on May 20.
C. Prepare the adjusting entry needed on December 31, 2020.
D. Repeat the parts above, assuming the investments are accounted for using FV-OCI with no recycling. Bramble’s policy is to capitalize transaction costs on the acquisition of FV-OCI investments and reduce the proceeds on disposal. In addition, the company reclassifies any gains or losses on disposition to Retained Earnings.
E. What is the amount that will be reported as other comprehensive income for the year ended December 31, 2020? Show the wording that would appear on the comprehensive income statement.
D. What will be the balance in Accumulated Other Comprehensive
Income on December 31, 2020? (If an amount reduces the
account balance then enter with negative
sign.)
Homework Answers
Number
of shares remaining in investment in Nirmala company
= 8640-2880
=5760
Add Answer to:
Exercise 9-11
Bramble Corporation made the following purchases of investments
during 2020, the first year in...
Exercise 9-11 Bramble Corporation made the following purchases of investments during 2017, the first year in...
Exercise 9-11 Bramble Corporation made the following purchases of investments during 2017, the first year in which Bramble invested in equity securities: 1. On January 15, purchased 8,640 shares of Nirmala Corp.s common shares at $32.16 per share plus commission of $1,901 2. On April 1, purchased 4,800 shares of Oxana Corp.'s common shares at $50 per share plus commission of $3,235. 3. On September 10, purchased 6,720 shares of WTA Corp.s preferred shares at $25.44 per share plus commission...
Ayayai Corporation made the following purchases of investments during 2020, the first year in which Ayayai...
Ayayai Corporation made the following purchases of investments
during 2020, the first year in which Ayayai invested in equity
securities:
1.
On January 15, purchased 8,100 shares of Nirmala Corp.’s common
shares at $30.10 per share plus commission of $1,782.
2.
On April 1, purchased 4,500 shares of Oxana Corp.’s common
shares at $47 per share plus commission of $3,033.
3.
On September 10, purchased 6,300 shares of WTA Corp.’s
preferred shares at $23.90 per share plus commission of
$2,619....
Bridgeport Corporation made the following purchases of investments during 2020, the first year in which Bridgeport...
Bridgeport Corporation made the following purchases of
investments during 2020, the first year in which Bridgeport
invested in equity securities:
1.
On January 15, purchased 9,540 shares of Nirmala Corp.’s common
shares at $35.50 per share plus commission of $2,100.
2.
On April 1, purchased 5,300 shares of Oxana Corp.’s common
shares at $55 per share plus commission of $3,572.
3.
On September 10, purchased 7,420 shares of WTA Corp.’s
preferred shares at $28.40 per share plus commission of
$3,085....
Ayayai Corporation made the following purchases of investments during 2020, the first year in which Ayayai...
Ayayai Corporation made the following purchases of investments during 2020, the first year in which Ayayai invested in equity securities: 1. On January 15, purchased 8,100 shares of Nirmala Corp.'s common shares at $30.10 per share plus commission of $1,782. 2. On April 1, purchased 4,500 shares of Oxana Corp.'s common shares at $47 per share plus commission of $3,033 3. On September 10, purchased 6,300 shares of WTA Corp.'s preferred shares at $23.90 per share plus commission of $2,619....
Vaughn Corporation made the following cash purchases of securities during 2020, which is the first year...
Vaughn Corporation made the following cash purchases of
securities during 2020, which is the first year in which Vaughn
invested in securities.
1.
On January 15, purchased 8,800 shares of Sanchez Company’s
common stock at $33.50 per share plus commission $1,744.
2.
On April 1, purchased 4,400 shares of Vicario Co.’s common
stock at $52 per share plus commission $2,964.
3.
On September 10, purchased 6,160 shares of WTA Co.’s preferred
stock at $26.50 per share plus commission $4,320.
On...
Whispering Corporation made the following cash purchases of securities during 2020, which is the first year...
Whispering Corporation made the following cash purchases of securities during 2020, which is the first year in which Whispering invested in securities. 1. 2. 3. On January 15, purchased 8,800 shares of Sanchez Company's common stock at $33.50 per share plus commission $1,744. On April 1, purchased 4,400 shares of Vicario Co.'s common stock at $52 per share plus commission $2,964. On September 10, purchased 6,160 shares of WTA Co.'s preferred stock at $26.50 per share plus commission $4,320. On...
Exercise 17-11 (Part Level Submission) Vaughn Corporation made the following cash purchases of securities during 2020,...
Exercise 17-11 (Part Level Submission) Vaughn Corporation made the following cash purchases of securities during 2020, which is the first year in which Vaughn invested in securities. 1. On January 15, purchased 8,800 shares of Sanchez Company’s common stock at $33.50 per share plus commission $1,744. 2. On April 1, purchased 4,400 shares of Vicario Co.’s common stock at $52 per share plus commission $2,964. 3. On September 10, purchased 6,160 shares of WTA Co.’s preferred stock at $26.50 per...
Problem 5-11 a A comparative statement of financial position for Bramble Corporation follows: BRAMBLE CORPORATION Statement...
Problem 5-11 a A comparative statement of financial position for Bramble Corporation follows: BRAMBLE CORPORATION Statement of Financial Position December 31 Assets 2020 2019 Cash $78,000 $34,800 Accounts receivable 104,400 70,800 Inventory 159,600 97,200 FV-OCI investments in shares 75,600 100,800 Land 78,000 123,600 Equipment 468,000 516,000 Accumulated depreciation—equipment (140,400 ) (103,200 ) Goodwill 148,800 207,600 Total $972,000 $1,047,600 Liabilities and Shareholders’ Equity Accounts payable $14,400 $61,200 Dividends payable 18,000 38,400 Notes payable 264,000 402,000 Common shares 318,000 150,000 Retained earnings...
Exercise 9-9 Bramble Corporation, a Canadian-based international company that follows IFRS, has the following securities in...
Exercise 9-9 Bramble Corporation, a Canadian-based international company that follows IFRS, has the following securities in its portfolio of investments acquired for trading purposes and accounted for using the FV-NI method on December 31, 2019: Investments Carrying Amount (before adjustment) Fair Value 1,600 shares of David Jones Inc., common $89,000 $84,800 4,600 shares of Hearn Corp., common 170,200 164,200 370 shares of Alessandro Inc., preferred 51,800 53,900 $311,000 $302,900 In 2020, Bramble completed the following securities transactions: Mar. 1 Sold...
Ivanhoe Corporation made the following cash purchases of securities during 2020, which is the first year...
Ivanhoe Corporation made the following cash purchases of securities during 2020, which is the first year in which Ivanhoe invested in securities. 1. On January 15, purchased 11,600 shares of Sanchez Company's common stock at $33.50 per share plus commission $2,304. 2. On April 1, purchased 5,800 shares of Vicario Co's common stock at $52 per share plus commission $3,902. 3. On September 10, purchased 8,120 shares of WTA Co's preferred stock at $26.50 per share plus commission $5,692. On...
Exercise 9-11 Bramble Corporation made the following purchases of investments during 2017, the first year in which Bramble invested in equity securities: 1. On January 15, purchased 8,640 shares of Nirmala Corp.s common shares at $32.16 per share plus commission of $1,901 2. On April 1, purchased 4,800 shares of Oxana Corp.'s common shares at $50 per share plus commission of $3,235. 3. On September 10, purchased 6,720 shares of WTA Corp.s preferred shares at $25.44 per share plus commission...
Ayayai Corporation made the following purchases of investments
during 2020, the first year in which Ayayai invested in equity
securities:
1.
On January 15, purchased 8,100 shares of Nirmala Corp.’s common
shares at $30.10 per share plus commission of $1,782.
2.
On April 1, purchased 4,500 shares of Oxana Corp.’s common
shares at $47 per share plus commission of $3,033.
3.
On September 10, purchased 6,300 shares of WTA Corp.’s
preferred shares at $23.90 per share plus commission of
$2,619....
Bridgeport Corporation made the following purchases of
investments during 2020, the first year in which Bridgeport
invested in equity securities:
1.
On January 15, purchased 9,540 shares of Nirmala Corp.’s common
shares at $35.50 per share plus commission of $2,100.
2.
On April 1, purchased 5,300 shares of Oxana Corp.’s common
shares at $55 per share plus commission of $3,572.
3.
On September 10, purchased 7,420 shares of WTA Corp.’s
preferred shares at $28.40 per share plus commission of
$3,085....
Ayayai Corporation made the following purchases of investments during 2020, the first year in which Ayayai invested in equity securities: 1. On January 15, purchased 8,100 shares of Nirmala Corp.'s common shares at $30.10 per share plus commission of $1,782. 2. On April 1, purchased 4,500 shares of Oxana Corp.'s common shares at $47 per share plus commission of $3,033 3. On September 10, purchased 6,300 shares of WTA Corp.'s preferred shares at $23.90 per share plus commission of $2,619....
Vaughn Corporation made the following cash purchases of
securities during 2020, which is the first year in which Vaughn
invested in securities.
1.
On January 15, purchased 8,800 shares of Sanchez Company’s
common stock at $33.50 per share plus commission $1,744.
2.
On April 1, purchased 4,400 shares of Vicario Co.’s common
stock at $52 per share plus commission $2,964.
3.
On September 10, purchased 6,160 shares of WTA Co.’s preferred
stock at $26.50 per share plus commission $4,320.
On...
Whispering Corporation made the following cash purchases of securities during 2020, which is the first year in which Whispering invested in securities. 1. 2. 3. On January 15, purchased 8,800 shares of Sanchez Company's common stock at $33.50 per share plus commission $1,744. On April 1, purchased 4,400 shares of Vicario Co.'s common stock at $52 per share plus commission $2,964. On September 10, purchased 6,160 shares of WTA Co.'s preferred stock at $26.50 per share plus commission $4,320. On...
Ivanhoe Corporation made the following cash purchases of securities during 2020, which is the first year in which Ivanhoe invested in securities. 1. On January 15, purchased 11,600 shares of Sanchez Company's common stock at $33.50 per share plus commission $2,304. 2. On April 1, purchased 5,800 shares of Vicario Co's common stock at $52 per share plus commission $3,902. 3. On September 10, purchased 8,120 shares of WTA Co's preferred stock at $26.50 per share plus commission $5,692. On...
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