User Account

All Pages

Prepare the journal entries to record all transactions

Assignment Help Accounting Basics
Reference no: EM133156896

Question - Backto Inc. designs, manufactures, and markets various digital devices. Thanks to its operational excellence, Backto Inc. has generated stronger than expected cash flows in recent years. To earn extra profit, the company purchased the following equity securities on April 30, 2021:

Other information:

- Backto Inc. follows IFRS, and its fiscal year ends on December 31.

- The investments are accounted for under the Fair Value through Other Comprehensive Income (FV-OCI) method.

- On August 31, 2021, Backto Inc. sold 200 AL Inc. shares at $20 per share. Assume no commission incurred for this transaction.

- On December 31, 2021, the fair values per share of the securities are as follows: NO Inc. $18; RM Inc. $11; and AL Inc.: $15.

Required -

1) Prepare the journal entries to record all of the 2021 transactions and year-end events.

2) Can Backto Inc. transfer the previously unrealized holding gains or losses into net income when the investments are disposed of? Briefly explain why or why not.

Reference no: EM133156896

Questions Cloud

Building a more human-centric organisational culture : the issue of work Life balance is presented in a way that supports the ideals of behaviour and inclusion in the workplace. However, there are downsides to the n
What are the corporation yearly earnings per share : If a corporation had after-tax earnings (net profit) of $1,200,000 and 150,000 shares of common stock outstanding, what are the corporation's yearly
Improving the company profitability : Provide an example of a company that has done a complete turnaround.
Why incident investigating and record-keeping are important : Explain why incident investigating and record-keeping are important and how a robust document management system is advantageous for tracking crucial WHS informa
Prepare the journal entries to record all transactions : Backto Inc. follows IFRS, and its fiscal year ends on December 31. Prepare the journal entries to record all of the 2021 transactions and year-end events
Brief description of two hcm challenges : Submit a two-page proposal via Moodle for topic approval. Your proposal should provide a brief description of two HCM challenges and clearly indicate your prefe
Case study-john chambers-cisco systems : John Chambers knows that effective organizational communication happens when leaders talk with employees, not just to them. To transform communication into a tw
Describe the meaning of ethics in the context of work : Describe the meaning of ethics within the context of work including reference to the consequences of your actions to personal and professional integrity.
How can david motivate customer service employees : XYZ is a company that works in the field of selling cars. Though the market is highly competitive, and though the company lacks resources to hire additional org

Reviews

Write a Review

Accounting Basics Questions & Answers

  Recognition of concepts jim armstrong operates a small

recognition of concepts. jim armstrong operates a small company that books entershytainers for theaters parties

  What are jackson conversion costs for the year

Jackson Products Schedule of Cost of Goods Manufactured For the Year Ended December 31 - What are Jackson's conversion costs for the year

  Assess the punishment given to the convicted person

Identify and discuss at least three controls would you recommend that be included to prevent or limit like this from happening again.

  What alternative amount should your creditor

What alternative amount should your creditor be willing to accept today if the money can earn 4.8% compounded semi-annually

  Reflect activity or assignment that found most challenging

Reflect activity or assignment that found most challenging. how do you feel that the material presented in this course can aid in your future professional.

  Incremental revenues and expenses

When the incremental revenues and expenses are analyzed, the company is better off by A) $15 per unit if they complete the units. B) $25 per unit if they sell the units in their current state.

  Determine the future value of the loan

John's second, third, and fourth statements showing the amount he owes for a loan is shown below. Determine the future value of the loan after 8 years

  What is the gain on extinguishment of debt to be recognized

Annual interest of 10% is to be paid for 4 years every December 31. What is the gain on extinguishment of debt to be recognized for 2011

  Discuss what entry would o''brien sports and outdoors

The balance in Accumulated Depreciation at January 1 is $20,000. What entry would O'Brien Sports and Outdoors make to record the sale of the equipment

  How theory does or does not relate to social work practice

How the theory does or does not relate to social work practice. Competent social workers are able to construct a strong foundation.

  Rate of return on common stockholders equity

The Summary and Conclusions Worksheet tab is an overall comparison of how each company compares in terms of the major category

  Describe how and why a company issues stock

Describe how and why a company issues stock. Try to include at least 3 of the terms discussed in the text.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd