During 2015 Kakisa Financial Corporation had the

following trading investment #8700

During 2015, Kakisa Financial Corporation had the following trading investment
transactions:Feb. 1 Purchased 600 CBF common shares for $36,000.Mar. 1 Purchased 800
RSD common shares for $24,000.Apr. 1 Purchased 7% MRT bonds at face value, for $60,000.
Interest is received semi-annually on April 1 and October 1.July 1 Received a cash dividend of
$3 per share on the CBF common shares.Aug. 1 Sold 200 CBF common shares at $58 per
share.Sept. 1 Received a cash dividend of $1.50 per share on the RSD common shares.Oct. 1
Received the semi-annual interest on the MRT bonds.1 Sold the MRT bonds for $62,000.Dec.
31 The market prices of the CBF and RSD common shares were $55 and $31 per share,
respectively.Instructions(a) Record the above transactions, including any required adjusting
entries, using the fair value through profit or loss model.(b) Show how the investments would be
presented on the statement of financial position at December 31, 2015.(c) Determine the
balance in each of the income statement accounts that are affected in the transactions above
and indicate how they would be presented on the income statement for the year ended
December 31, 2015?View Solution:
During 2015 Kakisa Financial Corporation had the following trading investment

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