Problem 15-3 (IAA)

Required:
Prepare journal entries for 2020 and 2021.
Answer:
December 31, 2020 Trading Securities 500,000
Unrealized Gain – TS (2.5M – 2M) 500,000

/ Unrealized loss – other comprehensive income 100,000

Financial Asset – FVOCI 100,000

December 31, 2021 Unrealized loss – TS 300,000

Trading securities (2.5M – 2.2M) 300,000

/ Unrealized loss – other comprehensive income 600,000

Financial Asset – FVOCI 600,000

Problem 15-4 (IAA)

Required:
Prepare journal entries on December 31, 2020 and December 31, 2021.
Answer:
December 31, 2020 Unrealized loss – other comprehensive income 150,000
Financial asset – FVOCI 150,000

December 31, 2021 Financial Asset – FVOCI 50,000

Unrealized loss – other comprehensive income 50,000