Blossom Corp. invested its excess cash in securities during 2025. As of December 31, 2025, the securities portfolio consisted of the following common stocks. Blossom does not have significant influence in any of these companies. Security Lindsay Jones, Inc. Quantity Cost Fair Value 1,000 shares $15,100 $21,100 Poley Corp. Arnold Aircraft 2,100 shares 40,110 42,110 2,100 shares 71,190 59,090 Totals $126,400 $122,300 (a) What should be reported on Blossom's December 31, 2025, balance sheet relative to these securities? What should be reported on Blossom's 2025 income statement? On December 31, 2026, Blossom's securities portfolio consisted of the following common stocks. Security Quantity Cost Fair Value Lindsay Jones, Inc. 1,000 shares $15,100 $20,100 Lindsay Jones, Inc. 2,100 shares 32,760 39,800 Duff Company 1,000 shares 15,800 12,100 Arnold Aircraft 2,100 shares 71,190 22,200 Totals $134,850 $94,200 During the year 2026, Blossom Corp. sold 2,100 shares of Poley Corp. for $38,430 and purchased 2,100 more shares of Lindsay Jones, Inc. and 1,000 shares of Duff Company. BLOSSOM CORP. Balance Sheet (Partial) $

Blossom Corp. invested its excess cash in securities during 2025. As of December 31, 2025, the securities portfolio consisted of the following common stocks. Blossom does not have significant influence in any of these companies. Security Lindsay Jones, Inc. Quantity Cost Fair Value 1,000 shares $15,100 $21,100 Poley Corp. Arnold Aircraft 2,100 shares 40,110 42,110 2,100 shares 71,190 59,090 Totals $126,400 $122,300 (a) What should be reported on Blossom's December 31, 2025, balance sheet relative to these securities? What should be reported on Blossom's 2025 income statement? On December 31, 2026, Blossom's securities portfolio consisted of the following common stocks. Security Quantity Cost Fair Value Lindsay Jones, Inc. 1,000 shares $15,100 $20,100 Lindsay Jones, Inc. 2,100 shares 32,760 39,800 Duff Company 1,000 shares 15,800 12,100 Arnold Aircraft 2,100 shares 71,190 22,200 Totals $134,850 $94,200 During the year 2026, Blossom Corp. sold 2,100 shares of Poley Corp. for $38,430 and purchased 2,100 more shares of Lindsay Jones, Inc. and 1,000 shares of Duff Company. BLOSSOM CORP. Balance Sheet (Partial) $

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter13: Investments And Long-term Receivables

Section: Chapter Questions

Problem 2MC: During 2021, Anthony Company purchased debt securities as a long-term investment and classified them...

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During 2021, Anthony Company purchased debt securities as a long-term investment and classified them as trading. All securities were purchased at par value. Pertinent data are as follows: The net holding gain or loss included in Anthonys income statement for the year should be: a. 0 b. 3,000 gain c. 9,000 loss d. 12,000 loss
Hyde Corporations capital structure at December 31, 2018, was as follows: On July 2, 2019, Hyde issued a 10% stock dividend on its common stock and paid a cash dividend of 2.00 per share on its preferred stock. Net income for the year ended December 31, 2019, was 780,000. What should be Hydes 2019 basic earnings per share? a. 7.80 b. 7.09 c. 7.68 d. 6.73
Bridgeport Corp. invested its excess cash in securities during 2020. As of December 31, 2020, the securities portfolio consisted of the following common stocks. Security Quantity Cost Fair Value Lindsay Jones, Inc. 1,000 shares $15,100 $21,100 Poley Corp. 2,000 shares 39,900 41,800 Arnold Aircraft 2,000 shares 72,500 60,300 Totals $127,500 $123,200 What should be reported on Bridgeport’s December 31, 2020, balance sheet relative to these securities? What should be reported on Bridgeport’s 2020 income statement?
Fernandez Corp. invested its excess cash in securities during 2020. As of December 31, 2020, the securities portfolio consisted of the following common stocks. Security Quantity Cost Fair Value Lindsay Jones, Inc. 1,000 shares $ 15,000 $ 21,000 Poley Corp. 2,000 shares 40,000 42,000 Arnold Aircraft 2,000 shares 72,000 60,000 Totals $127,000 $123,000 Instructions a. What should be reported on Fernandez's December 31, 2020, balance sheet relative to these securities? What should be reported on Fernandez's 2020 income statement? On December 31, 2021, Fernandez's securities portfolio consisted of the following common stocks. Security Quantity Cost Fair Value Lindsay Jones, Inc. 1,000 shares $ 15,000 $20,000 Lindsay Jones, Inc. 2,000 shares 33,000 40,000 Duff Company 1,000 shares 16,000 12,000 Arnold Aircraft 2,000 shares 72,000 22,000 Totals $136,000 $94,000 During the year 2021,…
Bridgeport Corp. invested its excess cash in securities during 2020. As of December 31, 2020, the securities portfolio consisted of the following common stocks. Security Quantity Cost Fair Value Lindsay Jones, Inc. 1,000 shares $15,100 $21,100 Poley Corp. 2,000 shares 39,900 41,800 Arnold Aircraft 2,000 shares 72,500 60,300 Totals $127,500 $123,200
ABC Co. had the following activities in 2020:Issuance of common stock 58000 Sales of Furniture 50000 OMR Payment of dividends 64000 Issuance of bonds payable 25000 Sale of long Term Assets 250000 Bank loan repaid 23000 Purchase of equipment 153000 Purchase of available-for-sale securities 80000 Purchase of treasury stock 10000 Prepare the cash flows from investing a. 70000 OMR b. 75000 OMR c. None of the options d. 67000 OMR
ABC Co. had the following activities in 2020:Issuance of common stock 58000 Payment of dividends 64000 Issuance of bonds payable 25000 Sale of long Term Assets 105000 Bank loan repaid 23000 Purchase of equipment 53000 Purchase of available-for-sale securities 43000 Purchase of treasury stock 15000 Prepare the cash flows from investing a. 9000 OMR b. 8700OMR c. 7200 OMR d. None of the options
In January 2022, the management of Handley Corporation, a publicly-traded company, decides that it has sufficient cash to purchase some debt and equity securities to be held as trading investments. During the year, the following transactions occurred. Feb. 1 Purchased 1,100 shares of NJF common shares for $48,400. Mar. 1 Purchased 500 shares of SEK common shares for $20,000. Apr. 1 Purchased 73 $1,000, 8% CRT bonds for $74,200. Interest is receivable semi-annually on April 1 and October 1. July 1 Received a cash dividend of $0.60 per share on the NJF common shares. Aug. 1 Sold 180 shares of NJF common shares at $39.00 per share. Sept. 1 Received $2 per share cash dividend on the SEK common shares. Oct. 1 Received the semi-annual interest on the CRT bonds. Oct. 1 Sold the CRT bonds for $79,240. At December 31, Handley’s fiscal year end, the fair values of the NJF and SEK common shares were $38 and $29 per share, respectively. Record the above…
Assume these are the only securities Martin owns and that the company accounts for them as trading securities. How will changes in the prices of the securities affect net income? What would the effect on net income be if the Nichols Inc. securities were worth $463,000 at year-end (instead of $558,000)
Safety Development Corporation had relatively large idle cash balances and invested them as follows in securities to be held as non-strategic investments: 2020 Feb. 7 Purchased 3,700 common shares of Royal Bank at $28.00, plus $500 in transaction fees. 19 Purchased 2,700 common shares of Imperial Oil at $55.50, and paid $250 in transaction fees. Apr. 1 Paid $103,069 plus $500 in transaction fees for a 7.40%, four-year, $105,000 Minco Inc. bond that pays interest quarterly beginning June 30. The market rate of interest on this date was 7.80%. Sellers Corporation plans to hold this investment for the duration of the bond’s contract life. May 26 Purchased 3,500 common shares of BCE at $14.88, plus $200 in transaction fees. June 1 Received a $0.25 per share cash dividend on the Royal Bank common shares. 17 Sold 2,700 Royal Bank common shares at $28.50. 30 Received interest on the Minco Inc. bond. Aug. 5 Received a $0.50 per share cash dividend on the…
Hardstone Inc. had excess cash and invested it in the stock of Softrock, Inc. On August 5, 2021 Hardstone bought 7,000 shares of Softrock at $12 per share. On September 30, 2021, Softrock paid a cash dividend of $1 per share. On December 31, 2021, the stock had decreased in value to $10 per share. Which of the following would be included in the journal entry for December 31, 2021? No entry required Debit to Trading Securities: $14,000 Debit to Unrealized Loss on Investments: $14,000 Credit to Cash: $7,000 Credit to Dividend Revenue: $7,000
Safety Development Corporation had relatively large idle cash balances and invested them as follows in securities to be held as non-strategic investments: 2023 Feb. 7 Purchased 2,700 common shares of Royal Bank at $27.00, plus $500 in transaction fees. 19 Purchased 1,700 common shares of Imperial Oil at $53.00, and paid $250 in transaction fees. Apr. 1 Paid $93,215 plus $500 in transaction fees for a 7.80%, four-year, $95,000 Minco Inc. bond that pays interest quarterly beginning June 30. The market rate of interest on this date was 8.20%. Sellers Corporation plans to hold this investment for the duration of the bond’s contract life. May 26 Purchased 2,500 common shares of BCE at $13.88, plus $200 in transaction fees. June 1 Received a $0.25 per share cash dividend on the Royal Bank common shares. 17 Sold 1,700 Royal Bank common shares at $27.50. 30 Received interest on the Minco Inc. bond. Aug. 5 Received a $0.50 per share cash dividend on…