Reference no: EM132871784
Question 1 - In September 30, 2020, Reveal Ltd. invested excess cash in the shares of Adam Company. It acquired 2,000 shares at $45 each. On December 31, 2020, and December 31, 2021, the shares of Adam were trading at $36 and $51 per share, respectively.
Required - Assuming the investment in Adam is classified as Fair Value Through Other Comprehensive Income (FVTOCI), prepare all required journal entries in 2020 and 2021.
Question 2 - The following is an alphabetical list of account balances at December 31, 2021 for The Best Corporation. The company did not declare any dividends in 2021.
Building 850,000
FVTOCI investments 120,000
Capital Stock 702,000
Cash 50,000
Cost of goods sold 650,000
Inventories 96,000
Depreciation expense 49,000
Dividends payable 8,000
Supplies 16,000
Income tax expense 80,000
Insurance expense 9,000
Interest expense 35,000
Accumulated depreciation - equipment 120,000
Unearned revenues 63,000
Interest income 17,000
Interest payable 16,000
Interest receivable 9,000
Accounts payable 140,000
Accounts Receivable 89,000
Accumulated depreciation - building 230,000
Land 650,000
Long-term bank loan 590,000
Patents 125,000
Equipment 560,000
FVTPL investments 129,000
Prepaid expenses 16,000
Rent expense 23,000
Bonds payable, due December 31, 2028 260,000
Retained Earnings (beginning of year balance) 310,000
Salaries expense 130,000
Sales 1,230,000
Required - Prepare Statement of Financial Position for 2021.