Intermediate Accounting Assignment

Requirement 1.

Doppler Corporation Correct Entry Correction

Entry on:
DATE

September 28 Dr.Cash 28 000 Dr. Cash 28 000 Dr. Financial Asset-

FVOCI 8 000
Cr. Financial Asset- Cr. Financial Asset-
FVOCI 28 000 FVOCI 20 000 Cr. Retained Earnings
8 000
Cr. Retained earnings
8 000

October 28 Dr. Cash 24 000 Dr. Cash 24 000 Dr. Financial Asset-
FVOCI 24 000
Cr. Financial Asset- Cr. Dividend Income
FVOCI 24 000 24 000 Cr. Dividend Income
24 000

Requirement 2.

Dr. Retained Earnings 64 000

Cr. Financial Asset-FVOCI 64

000
December 31

Solutions:

Harmon Company Taber Inc.

Beginning 4 000 x 50 =200 000 20 000x40= 800 000

End 4 000 x 74 = 296 000 20 000x32= 640 000

Unrealized Gain/Loss 96 000 (160 000) = (64 000)