Prepare the journal entries

Reference no: EM133017317

Question: At December 31, 2019, Alpha Corp. (Alpha) had one investment classified as FVOCI-elect. Alpha's policy is to transfer accumulated other comprehensive income to retained earnings upon derecognition of the FVOCI-elect investment. The FVOCI-elect investment, consisting of shares in Delta Inc., was purchased in 2017 at a cost of $165,000. The carrying value of the Delta Inc. shares at December 31, 2019, was adjusted to its fair market value of $120,000. During 2020, Alpha sold the shares of Delta Inc. for $100,000.

On April 30, 2020, Alpha acquired shares of Gold Inc. at a cost of $200,000. These shares were classified as FVOCI-elect, and the fair value of the shares at December 31, 2020, was $235,000. On July 1, 2020, Alpha purchased shares of Beta Corp. for $95,000. The fair value of the Beta Corp. shares on December 31, 2020, was $80,000. The shares of Beta Corp. are classified as fair value through profit or loss.

Alpha reports using IFRS and has a December 31 year end.

Required:

Prepare the journal entries for Alpha's 2020 transactions listed above.

Reference no: EM133017317

Questions Cloud

Collegiate model of athletics : Good evening can you provide me with a detailed analysis regarding the following questions for research purposes this week:

Discuss ways the ancient greek moral philosophies : Discuss ways the ancient Greek moral philosophies (such as the Myth of Er, the Ring of Gyges, Fable of King Midas) might influence modern thoughts about work an

Manage a large email workload : Define any of the three ways to manage a large email workload.

Evaluate china economy : Evaluate China's economy to conduct business for an American company

Prepare the journal entries : Prepare the journal entries for Alpha's 2020 transactions listed above

Find relationship between the variables : What type of validity is most concerned with whether there is a relationship between the variables??

Participate in a telephone survey : An individual is asked to participate in a telephone survey about packaging design for cereal. While her kids eat cereal, she has no problems with current packa

Index of economic freedom : -Based on information in the 2021 Index of Economic Freedom ONLY, which of the following countries would you recommend that a client consider for FDI?

Conduct a meeting with the project manager : Conduct a meeting with the Project Manager and confirm the scope of the tasks (provide summary meeting points in your report)

User Account

All Pages