Answered You can hire a professional tutor to get the answer.
Concord Corporation made the following purchases of investments during 2017, the first year in which Concord invested in equity securities: On...
Concord Corporation made the following purchases of investments during 2017, the first year in which Concord invested in equity securities:
1.
On January 15, purchased 6,390 shares of Nirmala Corp.'s common shares at $23.79 per share plus commission of $1,406.2.
On April 1, purchased 3,550 shares of Oxana Corp.'s common shares at $37 per share plus commission of $2,393.3.
On September 10, purchased 4,970 shares of WTA Corp.'s preferred shares at $18.82 per share plus commission of $2,066.
On May 20, 2017, Concord sold 2,130 of the Nirmala common shares at a market price of $25 per share less brokerage commissions of $2,024. The year-end fair values per share were as follows: Nirmala $21; Oxana $39; and WTA $20. The chief accountant of Concord tells you that Concord 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, with no separate reporting of dividends and other types of FV-NI investment income and losses.
Assume that Concord Corporation follows IFRS 9.
1.Prepare the journal entries to record the three investments. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Round answers to 0 decimal places, e.g. 5,275.)
2.Prepare the journal entry for the sale of the 2,130 Nirmala shares on May 20. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Round answers to 0 decimal places, e.g. 5,275.)
3.Prepare the adjusting entry needed on December 31, 2017. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Round answers to 0 decimal places, e.g. 5,275.)
4.Repeat the parts above, assuming the investments are accounted for using FV-OCI with no recycling. Concord's policy is to capitalize transaction costs on the acquisition of FV-OCI investments and reduce the proceeds on disposal. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Round answers to 0 decimal places, e.g. 5,275.)
