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

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Theory of interest - term structure of interest rates

Term Structure of Interest Rates

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

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