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, Fernandez Corp. sold 2,000 shares of Poley Corp. for $38,200 and purchased 2,000 more shares of Lindsay Jones, Inc. and 1,000 shares of Duff Company. b. What should be reported on Fernandez's December 31, 2021, balance sheet? What should be reported on Fernandez's 2021 income statement? On December 31, 2022, Fernandez's securities portfolio consisted of the following common stocks. Security Quantity Cost Fair Value Arnold Aircraft 2,000 shares $72,000 $82,000 Duff Company 500 shares 8,000 6,000 Totals $80,000 $88,000 During the year 2022, Fernandez Corp. sold 3,000 shares of Lindsay Jones, Inc. for $39,900 and 500 shares of Duff Company at a loss of $2,700. c. What should be reported on the face of Fernandez's December 31, 2022, balance sheet? What should be reported on Fernandez's 2022 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, Fernandez Corp. sold 2,000 shares of Poley Corp. for $38,200 and purchased 2,000 more shares of Lindsay Jones, Inc. and 1,000 shares of Duff Company. b. What should be reported on Fernandez's December 31, 2021, balance sheet? What should be reported on Fernandez's 2021 income statement? On December 31, 2022, Fernandez's securities portfolio consisted of the following common stocks. Security Quantity Cost Fair Value Arnold Aircraft 2,000 shares $72,000 $82,000 Duff Company 500 shares 8,000 6,000 Totals $80,000 $88,000 During the year 2022, Fernandez Corp. sold 3,000 shares of Lindsay Jones, Inc. for $39,900 and 500 shares of Duff Company at a loss of $2,700. c. What should be reported on the face of Fernandez's December 31, 2022, balance sheet? What should be reported on Fernandez's 2022 income statement?
Intermediate Accounting: Reporting And Analysis
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ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
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Chapter16: Retained Earnings And Earnings Per Share
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Problem 26E: Tama Companys capital structure consists of common stock and convertible bonds. At the beginning of...
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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,
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, Fernandez Corp. sold 2,000 shares of Poley Corp. for $38,200 and purchased 2,000 more shares of Lindsay Jones, Inc. and 1,000 shares of Duff Company.
b. What should be reported on Fernandez's December 31, 2021, balance sheet? What should be reported on Fernandez's 2021 income statement?
On December 31, 2022, Fernandez's securities portfolio consisted of the following common stocks.
| Security | Quantity | Cost | Fair Value | |||
| Arnold Aircraft | 2,000 shares | $72,000 | $82,000 | |||
| Duff Company | 500 shares | 8,000 | 6,000 | |||
| Totals | $80,000 | $88,000 |
During the year 2022, Fernandez Corp. sold 3,000 shares of Lindsay Jones, Inc. for $39,900 and 500 shares of Duff Company at a loss of $2,700.
c. What should be reported on the face of Fernandez's December 31, 2022, balance sheet? What should be reported on Fernandez's 2022 income statement?
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