Grouper Corp. has the following portfolio of securities acquiredfor trading purposes and accounted for using the FV-NI model atSeptember 30, 2017, the end of the companyâs third quarter:
Investment Cost Fair Value 48,000 common shares of Yuen Inc.$273,600 $192,000 3,300 preferred shares of Monty Ltd. 125,400132,000 1,400 common shares of Oakwood Inc. 126,000 125,300
On October 8, 2017, the Yuen shares were sold for $5.70 pershare. On November 16, 2017, 3,000 common shares of Patriot Corp.were purchased at $43.90 per share. Grouper pays a 1% commission onpurchases and sales of all securities. At the end of the fourthquarter, on December 31, 2017, the fair values of the shares heldwere as follows: Monty $102,200; Patriot $117,000; and Oakwood$142,100. Grouper prepares financial statements every quarter.Assume Grouper follows IFRS 9 and does not recognize dividends andother investment income accounts separately. Required:
a) Prepare the journal entries to record the sale, purchase, andadjusting entries related to the portfolio for the fourth quarterof 2017.
b) Indicate how and where the investments would be reported onthe December 31, 2017 statement of financial position.
Grouper Corp. has the following portfolio of securities acquiredfor trading purposes and accounted for using the FV-NI model atSeptember 30, 2017, the end of the companyâs third quarter:
Investment Cost Fair Value 48,000 common shares of Yuen Inc.$273,600 $192,000 3,300 preferred shares of Monty Ltd. 125,400132,000 1,400 common shares of Oakwood Inc. 126,000 125,300
On October 8, 2017, the Yuen shares were sold for $5.70 pershare. On November 16, 2017, 3,000 common shares of Patriot Corp.were purchased at $43.90 per share. Grouper pays a 1% commission onpurchases and sales of all securities. At the end of the fourthquarter, on December 31, 2017, the fair values of the shares heldwere as follows: Monty $102,200; Patriot $117,000; and Oakwood$142,100. Grouper prepares financial statements every quarter.Assume Grouper follows IFRS 9 and does not recognize dividends andother investment income accounts separately. Required:
a) Prepare the journal entries to record the sale, purchase, andadjusting entries related to the portfolio for the fourth quarterof 2017.
b) Indicate how and where the investments would be reported onthe December 31, 2017 statement of financial position.
