Current Attempt in ProgressSweet Company has the following securities in its portfolio on December 31, 2025. None of these investments are accounted forunder the equity method.Investments1,500 shares of Gordon, Inc., common5,000 shares of Wallace Corp., common400 shares of Martin, Inc., preferredAll of the securities were purchased in 2025.Cost$72,000Investments175,0005,000 shares of Wallace Corp., common63,200$310,200SearchFair ValueIn 2026, Sweet completed the following securities transactions.$68,000March 1 Sold the 1,500 shares of Gordon, Inc., common, @ $45 less fees of $1,200.April 1 Bought 700 shares of Earnhart Corp., common, @ $75 plus fees of $1,500.Cost$175,000170,400Sweet's portfolio of equity securities appeared as follows on December 31, 2026.64,700$303,100Fair Value$170,400DELL Sweet's portfolio of equity securities appeared as follows on December 31, 2026.Investments5,000 shares of Wallace Corp., common700 shares of Earnhart Corp., common400 shares of Martin, Inc., preferredCost$175,000No. Account Titles and Explanationادا54,00063,200Prepare the general journal entries for Sweet Company for:(a) The 2025 adjusting entry.(b)The sale of the Gordon stock.(c) The purchase of the Earnhart stock.(d) The 2026 adjusting entry for the portfolio.$292,200Fair Value$170,40050,30061,200(List all debit entries before credit entries. Credit account titles are automatically indented when amount is entered. Do not indent manually. Ifno entry is required, select "No Entry" for the account titles and enter O for the amounts.)$281,900DebitCredit

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Current Attempt in Progress Sweet Company has the following securities in its portfolio on December 31, 2025. None of these investments are accounted for under the equity method. Investments 1,500 shares of Gordon, Inc., common 5,000 shares of Wallace Corp., common 400 shares of Martin, Inc., preferred All of the securities were purchased in 2025. Cost $72,000 175,000 Investments 5,000 shares of Wallace Corp., common 63,200 $310,200 In 2026, Sweet completed the following securities transactions. O Search Fair Value March 1 Sold the 1,500 shares of Gordon, Inc., common, @ $45 less fees of $1,200. April 1 Bought 700 shares of Earnhart Corp., common, @ $75 plus fees of $1,500. $68,000 Sweet's portfolio of equity securities appeared as follows on December 31, 2026. Cost $175,000 170,400 64,700 $303,100 Fair Value $170,400 DELL

Current Attempt in Progress Sweet Company has the following securities in its portfolio on December 31, 2025. None of these investments are accounted for under the equity method. Investments 1,500 shares of Gordon, Inc., common 5,000 shares of Wallace Corp., common 400 shares of Martin, Inc., preferred All of the securities were purchased in 2025. Cost $72,000 175,000 Investments 5,000 shares of Wallace Corp., common 63,200 $310,200 In 2026, Sweet completed the following securities transactions. O Search Fair Value March 1 Sold the 1,500 shares of Gordon, Inc., common, @ $45 less fees of $1,200. April 1 Bought 700 shares of Earnhart Corp., common, @ $75 plus fees of $1,500. $68,000 Sweet's portfolio of equity securities appeared as follows on December 31, 2026. Cost $175,000 170,400 64,700 $303,100 Fair Value $170,400 DELL

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
The investments of Steelers Inc. include a single investment: 33,100 shares of Bengals Inc. common stock purchased on September 12, 2016, for 13 per share including brokerage commission. These shares were classified as available-for-sale securities. As of the December 31, 2016, balance sheet date, the share price declined to 11 per share. a. Journalize the entries to acquire the investment on September 12 and record the adjustment to fair value on December 31, 2016. b. How is the unrealized gain or loss for available-for-sale investments disclosed on the financial statements?
Trading Securities Pear Investments began operations in 2020 and invests in securities classified as trading securities. During 2020, it entered into the following trading security transactions: Purchased 20,000 shares of ABC common stock at $38 per share Purchased 32,000 shares of XYZ common stock at $17 per share At December 31, 2020, ABC common stock was trading at $39.50 per share and XYZ common stock was trading at $16.50 per share. Required: 1. Prepare the necessary adjusting entry to value the trading securities at fair market value. 2. CONCEPTUAL CONNECTION What is the income statement effect of this adjusting entry?
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Statement of Stockholders' Equity At the end of 2019, Stanley Utilities Inc. had the following equity accounts and balances: During 2020, Haley engaged in the following transactions involving its equity accounts: Sold 5,000 shares of common stock for $19 per share. Sold 1.200 shares of 12%, $50 par preferred stock at $75 per share. Declared and paid cash dividends of $22,000. Repurchased 1,000 shares of treasury stock (common) for $24 per share. Sold 300 of the treasury shares for $26 per share. Required: Prepare the journal entries for Transactions a through e. Assume that 2020 net income was $123,700. Prepare a statement of stockholders equity at December 31, 2020.
Statement of Stockholders' Equity At the end of 2019, Stanley Utilities Inc. had the following equity accounts and balances: During 2020, Stanley Utilities engaged in the following transactions involving its equity accounts: Sold 3,300 shares of common stock for $15 per share. Sold 1,000 shares of 12%, $100 par preferred stock at $105 per share. Declared and paid cash dividends of $8,000. Repurchased 1,000 shares of treasury stock (common) for $38 per share. Sold 400 of the treasury shares for $42 per share. Required: Prepare the journal entries for Transactions a through e. Assume that 2020 net income was $87,000. Prepare a statement of stockholders equity at December 31, 2020.