Busi 293 – ASSIGNMENT #2 Additional Question The following information relates to the investments classified at fair value through profit and loss (“FVTPL) of Sinclair Corp

Busi 293 – ASSIGNMENT #2

Additional Question
The following information relates to the investments classified at fair value through profit and loss (“FVTPL) of Sinclair Corp.

Acquisition Acquisition Date Selling Market Value Dec. 31
Security Date Cost Sold Price 2016 2017 2018

Alpha Apr. 13, 2016 $140,000 N/A N/A $125,000 $142,000 $150,000
Beta Aug. 24, 2016 $80,000 May 27, 2017 $105,000 $85,000 N/A N/A
Delta Jan. 8, 2017 $90,000 N/A N/A N/A $73,000 $85,000
Omega Jan. 3, 2018 $180,000 June 30, 2018 $210,000 N/A N//A N/A

The Sinclair Corp. closes its books on December 31 each year.

[“N/A” means not applicable.]

Required:
a. Prepare journal entries relating to these investments at fair value through profit and loss for each year. (There are NO brokerage fees.)

b. Show how the information regarding these investments would be presented on the income statement and balance sheet for each year.

THE TEMPLATE FOR SUBMITTING THIS QUESTION STARTS ON THE NEXT PAGE. ONLY HAND-IN THE PAGES STARTING WITH “NAME”.

293−ADDITIONAL QUESTION For ASSIGNMENT 2
NAME(Last,First): ________________________
STUDENT NO: _______________________

Debit Credit
2016
Apr. 13

Aug. 24

Dec. 31

2017
Jan. 8

May 27

Dec. 31

Debit Credit
2018
Jan. 3

June 30

Dec. 31

b) Income Statement:

2016 2017 2018
Realized gain (loss) on sale of investments at fair value through profit and loss

Unrealized gain (loss) from change in market value of investments at fair value through profit and loss
Balance Sheet:

2016 2017 2018
Investments (“FVTPL”)
(at ____________________________________)