Lark Depot has two equity securities in which it has less than a 20% ownership interest and therefore has little or no influence over these companies. Investments Cost Fair Value Unrealized Gain (Loss) Sun Enterprises $82,750 $84,350 $1,600 Angle Co. 11,700 10,810 (890) Totals $94,450 $95,160 $710 Prepare the adjusting entry required at year end. (List debit entry before credit entry. If no entry is required, select "No entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Date Account Titles and Explanation Dec. 31 Debit Credit

Lark Depot has two equity securities in which it has less than a 20% ownership interest and therefore has little or no influence over these companies. Investments Cost Fair Value Unrealized Gain (Loss) Sun Enterprises $82,750 $84,350 $1,600 Angle Co. 11,700 10,810 (890) Totals $94,450 $95,160 $710 Prepare the adjusting entry required at year end. (List debit entry before credit entry. If no entry is required, select "No entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Date Account Titles and Explanation Dec. 31 Debit Credit

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

Chapter16: Retained Earnings And Earnings Per Share

Section: Chapter Questions

Problem 21P: Waseca Company had 5 convertible securities outstanding during all of 2019. It paid the appropriate...

See similar textbooks

Similar questions

Waseca Company had 5 convertible securities outstanding during all of 2019. It paid the appropriate interest (and amortized any related premium or discount using the straight line method) and dividends on each security during 2019. Each of the convertible securities is described in the following table: Additional data: Net income for 2019 totaled 119,460. The weighted average number of common shares outstanding during 2019 was 40,000 shares. No share options or warrants arc outstanding. The effective corporate income tax rate is 30%. Required: 1. Prepare a schedule that lists the impact of the assumed conversion of each convertible security on diluted earnings per share. 2. Prepare a ranking of the order in which each of the convertible securities should be included in diluted earnings per share. 3. Compute basic earnings per share. 4. Compute diluted earnings per share. 5. Indicate the amount(s) of the earnings per share that Waseca would report on its 2019 income statement.
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 September 30, Franz Corporation notices a decline in value of its investment in held-to-maturity bonds. On that date, the carrying value of the bonds is 38,500 and the fair value is 22,980. Franz evaluation of this investment reveals that expected credit losses are 10,000. Prepare the journal entry to record the impairment.
Ayayai Company has the following investments as of December 31, 2020: Investments in common stock of Laser Company $1,380,000 Investment in debt securities of FourSquare Company $3,530,000 In both investments, the carrying value and the fair value of these two investments are the same at December 31, 2020. Ayayai’s stock investments does not result in significant influence on the operations of Laser Company. Ayayai’s debt investment is considered held-to-maturity. At December 31, 2021, the shares in Laser Company are valued at $1,020,000; the debt investment securities of FourSquare are valued at $2,780,000 and are considered impaired. 1. Prepare the journal entry to record the impairment of the debt securities at December 31, 2021. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) 2. Assuming the fair value of the Laser shares is…
Founded on January 1, 20X1, Gehl Company had the following passive investments in equity securities at the end of 20X1 and 20X2: Equity Security Cost 12/31/X2 Fair Value A $ 96,000 $ 94,000 B 184,000 162,000 C 126,000 136,000 Required: If the company recorded a $4,000 debit to its Fair value adjustment account as its 20X2 fair value adjustment, what must have been the unrealized gain or loss reported at the end of 20X1?
weet Company has the following investments as of December 31, 2020: Investments in common stock of Laser Company $1,460,000 Investment in debt securities of FourSquare Company $3,230,000 In both investments, the carrying value and the fair value of these two investments are the same at December 31, 2020. Sweet’s stock investments does not result in significant influence on the operations of Laser Company. Sweet’s debt investment is considered held-to-maturity. At December 31, 2021, the shares in Laser Company are valued at $1,060,000; the debt investment securities of FourSquare are valued at $2,430,000 and are considered impaired. Assume that the debt investment in FourSquare Company was available-for-sale and the expected credit loss was $890,000. Prepare the journal entry to record this impairment on December 31, 2021
Novak Company has the following investments as of December 31, 2020: Investments in common stock of Laser Company $1,350,000 Investment in debt securities of FourSquare Company $3,280,000 In both investments, the carrying value and the fair value of these two investments are the same at December 31, 2020. Novak’s stock investments does not result in significant influence on the operations of Laser Company. Novak’s debt investment is considered held-to-maturity. At December 31, 2021, the shares in Laser Company are valued at $950,000; the debt investment securities of FourSquare are valued at $2,460,000 and are considered impaired. LIST OF ACCOUNTS Accumulated Other Comprehensive Loss Allowance for Doubtful Accounts Allowance to Reduce Inventory to Market Bad Debt Expense Bonds Payable Cash Call Option Common Stock Cost of Goods Sold Debt Investments Dividend Revenue Dividend Receivable Equity Investments Fair Value Adjustment Futures Contract Gain on Sale of Investments…
Novak Company has the following investments as of December 31, 2020: Investments in common stock of Laser Company $1,350,000 Investment in debt securities of FourSquare Company $3,280,000 In both investments, the carrying value and the fair value of these two investments are the same at December 31, 2020. Novak’s stock investments does not result in significant influence on the operations of Laser Company. Novak’s debt investment is considered held-to-maturity. At December 31, 2021, the shares in Laser Company are valued at $950,000; the debt investment securities of FourSquare are valued at $2,460,000 and are considered impaired. (a) Prepare the journal entry to record the impairment of the debt securities at December 31, 2021. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) Date Account Titles and…
Novak Company has the following investments as of December 31, 2020: Investments in common stock of Laser Company $1,350,000 Investment in debt securities of FourSquare Company $3,280,000 In both investments, the carrying value and the fair value of these two investments are the same at December 31, 2020. Novak’s stock investments does not result in significant influence on the operations of Laser Company. Novak’s debt investment is considered held-to-maturity. At December 31, 2021, the shares in Laser Company are valued at $950,000; the debt investment securities of FourSquare are valued at $2,460,000 and are considered impaired. PLEASE HELP WITH THE ENTRY THANK YOU.
Sweet Company has the following investments as of December 31, 2020: Investments in common stock of Laser Company $1,460,000 Investment in debt securities of FourSquare Company $3,230,000 In both investments, the carrying value and the fair value of these two investments are the same at December 31, 2020. Sweet’s stock investments does not result in significant influence on the operations of Laser Company. Sweet’s debt investment is considered held-to-maturity. At December 31, 2021, the shares in Laser Company are valued at $1,060,000; the debt investment securities of FourSquare are valued at $2,430,000 and are considered impaired. Prepare the journal entry to record the impairment of the debt securities at December 31, 2021.