Venture Investments purchased the following securities on August
1, 2020.
5,000 common shares of Rising Star Co: $22,500
10,000 common shares of Meteor Inc.: $65,000
Management decided to classify these investments as fair value
through other comprehensive income. On December 31, 2020, the
market value of the securities was:
Rising Star Co.: $26,250
Meteor Inc.: $59,500
On March 15, 2021, Venture completed the following securities
transaction:
Purchased 500 common shares of Gemini Corp at $18.50 per share,
plus fees of $500. Venture classified this investment as fair value
through net income.
On December 31, 2021, the market value of Venture's investments
were: Rising Star Co.:
$24,750 Meteor Inc.:
$73,000 Gemini Corp.:
$10,200
Required: 1. Prepare the journal entries for:
a) The 2020 year-end adjusting entries for the 2020
investments;
b) The 2021 purchase of Gemini Corp. shares;
c) The 2021 year-end adjusting entries
2. Assuming that Venture has no other investments, what is the
ending balance in accumulated other comprehensive income on
December 31, 2021?
Venture Investments purchased the following securities on August 1, 2020. 5,000 common shares of Rising Star Co: $22,500
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Venture Investments purchased the following securities on August 1, 2020. 5,000 common shares of Rising Star Co: $22,500
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