December 31, 2017 Cost Fair Value Unrealized Gain (Loss) Investments Clemson Corp. stock Colorado Co. stock $20,000 $19,000 10,000 20,000 $(1,000) (1,000) 600 9,000 Buffaloes Co. stock 20,600 $48,600 Total of portfolio Previous fair value adjustment balance Fair value adjustment-Cr. $50,000 (1,400) -0- $(1,400)

December 31, 2017 Cost Fair Value Unrealized Gain (Loss) Investments Clemson Corp. stock Colorado Co. stock $20,000 $19,000 10,000 20,000 $(1,000) (1,000) 600 9,000 Buffaloes Co. stock 20,600 $48,600 Total of portfolio Previous fair value adjustment balance Fair value adjustment-Cr. $50,000 (1,400) -0- $(1,400)

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
On December 31, 2019, Belle Company appropriately reported a P100,000 unrealized loss. There was no change in 2020 in the composition of Belle’s portfolio of Investments in equity securities held as financial asset at fair value through other comprehensive income. Pertinent data are as follows: Security Cost Market value December 31, 2020 A 1,200,000 1,300,000 B 900,000 500,000 C…
On December 21, 2020, Zurich Company provided you with the following information regarding its trading investments. December 31, 2020 Investments (Trading) Cost Fair Value Unrealized Gain (Loss) Stargate Corp. shares $20,000 $19,000 $(1,000) Carolina Co. shares 10,000 9,000 (1,000) Vectorman Co. shares 20,000 20,600 600 Total of portfolio $50,000 $48,600 $(1,400) Previous fair value adjustment balance –0– Fair value adjustment—Cr. $(1,400) During 2021, Carolina Co. shares were sold for $9,500. The fair value of the shares on December 31, 2021, was Stargate Corp. shares—$19,300; Vectorman Co. shares—$20,500. Instructions a. Prepare the adjusting journal entry needed on December 31, 2020. b. Prepare the journal entry to record the sale of the Carolina Co. shares during 2021. c. Prepare the adjusting journal entry needed on December 31, 2021.
22. During 2022, Haggard Company purchased marketable equity securities for P 1,850,000 to be held as trading investments. In 2022, the entity appropriately reported an unrealized loss of P 200,000 in the income statement. There was no change during 2022 in the composition of the portfolio of trading securities. Pertinent data on December 31, 2023 are: Security Cost Market value Inc (Dec) A 600,000 700,000 100,000 B 450,000 400,000 (50,000) C 800,000 900,000 100,000 Net Increase 150,000 What amount of unrealized gain on these securities should be included in the 2021 income statement?
On December 21, 2020, Buffalo Company provided you with the following information regarding its equity investments. December 31, 2020 Investments (Trading) Cost Fair Value Unrealized Gain (Loss) Clemson Corp. stock $ 19,200 $ 18,300 $( 900 ) Colorado Co. stock 9,500 8,600 ( 900 ) Buffaloes Co. stock 19,200 19,800 600 Total of portfolio $ 47,900 $ 46,700 ( 1,200 ) Previous fair value adjustment balance 0 Fair value adjustment—Cr. $( 1,200 ) During 2021, Colorado Co. stock was sold for $ 9,150. The fair value of the stock on December 31, 2021, was Clemson Corp. stock—$ 18,400; Buffaloes Co. stock—$ 19,690. None of the equity investments result in significant influence. (a) Prepare the adjusting journal entry needed on December 31, 2020. (b) Prepare the journal entry to record the sale of the Colorado Co. stock during 2021. (c) Prepare the adjusting journal entry needed on…
Paul Company presented the following information pertaining to its investments in equity securities. FVPL FVOCICost P1,000,000 P1,000,000Market value December 31, 2020 1,050,000 980,000 December 31, 2019 950,000 920,000 2.What amount should Paul report as unrealized gains/losses in the shareholders' equity of its December 31, 2020 statement of financial position?
On December 21, 2020, Pearl Company provided you with the following information regarding its equity investments. December 31, 2020 Investments (Trading) Cost Fair Value Unrealized Gain (Loss) Clemson Corp. stock $21,300 $20,300 $(1,000 ) Colorado Co. stock 9,100 8,200 (900 ) Buffaloes Co. stock 21,300 21,860 560 Total of portfolio $51,700 $50,360 (1,340 ) Previous fair value adjustment balance 0 Fair value adjustment—Cr. $(1,340 ) During 2021, Colorado Co. stock was sold for $8,650. The fair value of the stock on December 31, 2021, was Clemson Corp. stock—$20,390; Buffaloes Co. stock—$21,770. None of the equity investments result in significant influence. (a) Prepare the adjusting journal entry needed on December 31, 2020. (b) Prepare the journal entry to record the sale of the Colorado Co. stock during 2021. (c) Prepare the adjusting journal entry needed on December 31, 2021.…
On December 21, 2020, Bucky Katt Company provided you with the following information regarding its equity investments. December 31, 2020 Investments Cost Fair Value Unrealized Gain (Loss) Clemson Corp. stock $20,000 $19,000 $(1,000) Colorado Co. stock 10,000 9,000 (1,000) Buffaloes Co. stock 20,000 20,600 600 Total of portfolio $50,000 $48,600 (1,400) Previous fair value adjustment balance –0– Fair value adjustment—Cr. $(1,400) During 2021, Colorado Co. stock was sold for $9,400. The fair value of the stock on December 31, 2021, was Clemson Corp. stock—$19,100; Buffaloes Co. stock—$20,500. None of the equity investments result in significant influence. Instructions a. Prepare the adjusting journal entry needed on December 31, 2020. b. Prepare the journal entry to record the sale of the Colorado Co. stock during 2021. c. Prepare the adjusting journal entry needed on December 31, 2021.
On December 21, 2020, Sweet Company provided you with the following information regarding its equity investments. December 31, 2020 Investments (Trading) Cost Fair Value Unrealized Gain (Loss) Clemson Corp. stock $19,300 $18,200 $(1,100 ) Colorado Co. stock 10,400 9,400 (1,000 ) Buffaloes Co. stock 19,300 19,930 630 Total of portfolio $49,000 $47,530 (1,470 ) Previous fair value adjustment balance 0 Fair value adjustment—Cr. $(1,470 ) During 2021, Colorado Co. stock was sold for $9,910. The fair value of the stock on December 31, 2021, was Clemson Corp. stock—$18,310; Buffaloes Co. stock—$19,830. None of the equity investments result in significant influence. (a) Prepare the adjusting journal entry needed on December 31, 2020. (b) Prepare the journal entry to record the sale of the Colorado Co. stock during 2021. (c) Prepare the adjusting journal entry needed on December 31,…
On December 21, 2020, Grouper Company provided you with the following information regarding its equity investments. December 31, 2020 Investments (Trading) Cost Fair Value Unrealized Gain (Loss) Clemson Corp. stock $21,600 $20,700 $(900 ) Colorado Co. stock 10,700 9,600 (1,100 ) Buffaloes Co. stock 21,600 22,200 600 Total of portfolio $53,900 $52,500 (1,400 ) Previous fair value adjustment balance 0 Fair value adjustment—Cr. $(1,400 ) During 2021, Colorado Co. stock was sold for $10,140. The fair value of the stock on December 31, 2021, was Clemson Corp. stock—$20,790; Buffaloes Co. stock—$22,110. None of the equity investments result in significant influence. (a) Prepare the adjusting journal entry needed on December 31, 2020. (b) Prepare the journal entry to record the sale of the Colorado Co. stock during 2021. (c) Prepare the adjusting journal entry needed on December 31,…
33. On December 31, 2018, Calm Company appropriately reported P80, 000 unrealized loss in OIC for equity securities measured irrevocably at FVOCI. Security Cost Fair value at 12/31/19 X 1, 250, 000 1, 600, 000 Y 1, 000, 000 950, 000 Z 1, 750, 000 1, 250, 000 What amount of unrealized loss is recognized in the 2019 statement of changes in equity?
Sandhill Company's equity securities portfolio which is appropriately included in current assets is as follows: December 31, 2021 Cost Fair Value UnrealizedGain (Loss) Catlett Corp. $220000 $183000 $-37000 Lyman, Inc. 209000 225000 16000 $429000 $408000 $-21000 Ignoring income taxes, what amount should be reported as a charge against income in Sandhill's 2021 income statement if 2021 is Sandhill's first year of operation? $37000 loss. $0. $21000 loss. $16000 gain.