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會計討論 第四組

會計討論 第四組. 組員： 楊家寧 (01152201) ； 賴芳怡 (01152203) ； 黃雅琪 (01152207) ； 陳冠瑜 (01152219) ； 蔡雨沛 (01152225) ； 邱于瑄 (01152247). CA17-2. Lexinton Co. has the following equity investments on December 31, 2010 ( its first year of operations ). CA17-2.

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會計討論 第四組

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  1. 會計討論 第四組 組員： 楊家寧(01152201)； 賴芳怡(01152203)； 黃雅琪(01152207)； 陳冠瑜(01152219)； 蔡雨沛(01152225)； 邱于瑄(01152247)

  2. CA17-2 • Lexinton Co. has the following equity investments on December 31, 2010 ( its first year of operations )

  3. CA17-2 • During 2011 Summerset Company shares were sold for $9,200, the difference between the $9,200 and the “ fair value ” of $8,800 being recorded as a “ Gain on Sale of Equity Investment .” The market price of the shares on December 31, 2011, was：Greenspan Corp. shares $19,900；Tinkers Company shares $20,500.

  4. Equity Investmens

  5. CA17-2 Instructions • (a) What justification is there for valuing these investments at fair value and reporting the unrealized gain or loss in income？

  6. CA17-2 Instructions • (b) How should Lexinton Company apply this rule on December 31, 2010？Explain.

  7. CA17-2 Instructions -1000 -700 600 Unrealized holding loss $1000

  8. Entry Dec.31 Unrealized holding gain or loss-Income 1,000 Securities Fair Value Adjustment 1,000 Statement of financial position Dec.31,2010 Investment Equity Investments,at cost $49,500 Less: Securities Fair Value Adjustment 1,100 Equity Investment,at fair value $48,400

  9. CA17-2 Instructions • (c) Did Lexinton Company properly account for the sale of the Summerset Company shares？Explain.

  10. CA17-2 Instructions Cash 9,200 Loss on Sale of Equity Investment 300 Equity Investments 9,500

  11. CA17-2 Instructions • (d) Are there any additional entries necessary for Lexington Company at December 31, 2011, to reflect the facts on the financial statements in accordance with IFRS？ Explain.

  12. 2011 Dec.31 Securities Fair Value Adjustment 1,500 Unrealized holding gain or loss-Income 1,500

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