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  • Reign Company Debit Credit 2020

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    Anonn
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    Reign Company purchased a financial asset valued at $5,380,000 in January 2020. Over 2020, the asset increased in value to $6,000,000, generating $620,000 in gains. In 2021, the asset declined to $5,750,000, resulting in $250,000 in losses. The company also received $600,000 in interest income each year from the asset.

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    Intermediate Accounting1

    Original Title

    20-8

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    Reign Company purchased a financial asset valued at $5,380,000 in January 2020. Over 2020, the asset increased in value to $6,000,000, generating $620,000 in gains. In 2021, the asset declined to $5,750,000, resulting in $250,000 in losses. The company also received $600,000 in interest income each year from the asset.

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    Download as XLSX, PDF, TXT or read online from Scribd
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    16 views1 page

    Reign Company Debit Credit 2020

    Uploaded by

    Anonn
    Reign Company purchased a financial asset valued at $5,380,000 in January 2020. Over 2020, the asset increased in value to $6,000,000, generating $620,000 in gains. In 2021, the asset declined to $5,750,000, resulting in $250,000 in losses. The company also received $600,000 in interest income each year from the asset.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
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    of 1

    Reign Company

    Debit Credit
    2020
    Jan-01 Financial asset - FVPL Cash 5,380,000
    Financial asset - FVPL Cash 5,380,000

    Dec-31 Cash (12% x 5,000,000) 600,000


    Interest income 600,000

    31 Financial asset - FVPL 620,000


    Gain from change in fair value 620,000
    (6,000,000 - 5,380,000)

    2021
    Dec-31 Cash 600,000
    Interest income 600,000

    31 Loss from change in fair value 250,000


    Financial asset - FVPL 250,000
    (6,000,000 - 5,750,000)

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