Prepare the adjusting entry to record the securities at fair value.

Q: Instructions During January 2020, Long Corporation for the first time decided to acquire some equity…

A: Trading securities - These are the securities that are held by the company for a short period of…

Q: The following information is available for Stellar Company at December 31, 2020, regarding its…

A: Introduction: Journals: Recording of a business transactions in a chronological order. First step in…

Q: 1. What is the gain from extinguishment of debt if the equity swap is measured at the fair value of…

A:

Q: In the review of records of King Company for the year ended December 31,2021, the following data…

A: Since you have posted a question with multiple sub parts,  we will solve first three sub parts (As…

Q: At December 31, 2020, the available-for-sale debt investment for Zorro Community Bancorp has…

A: Other comprehensive income is that income which is not the part of profit and loss(P/L) account.…

Q: On January 1, 2020, Aguilar Corporation purchased bonds with a face value of P4,000,000 for…

A: Step 1 Journal is the Part of Book Keeping.

Q: Bloom Corporation purchased $1,000,000 of Taylor Company 5% bonds, at their face amount, with the…

A: Definition:   Bonds: Bonds are a kind of interest bearing notes payable, usually issued by…

Q: Garfield Company purchased, on January 1, 2020, as an avialable -for-sale-security, $80,000 of the…

A: Journal entries are prepared to record the financial and non financial transaction of the business…

Q: In its first year of operations, Oriole Corporation purchased available-for-sale debt securities…

A: Fair value of the securities means actual replacement value of the securities in the market.…

Q: On February 1, 2018, Bell Co. decides to invest excess cash of $16,800 by purchasing a Grant, Inc.…

A: Journal entry - It refers to the process where the business transactions are recorded in the books…

Q: (a) Sandra Corporation purchased $780,000 of its bonds on June 30, 2020, value of the bonds on the…

A: a) Journal Entry     Debit$ Credit$ Bond payable 780,000   Loss on bond redemption (…

Q: On Jan. 1, 2021, an entity bought an investment in bonds with a face value of P3,000,000 for…

A: “Since you have asked multiple sub-parts, we will solve the first three sub-parts for you. If you…

Q: Tamarisk Company in its first year of operations provides the following information related to one…

A: (a) Available-for-sale securities should be recorded at the fair value. Therefore, difference…

Q: On December 31, 2020, Camiguin Company shows the following data with respect to its matured…

A: An equity swap is a trade of future cash flows between two parties that enables each party to…

Q: Carla Company in its first year of operations provides the following information related to one of…

A: Expected credit losses as per IFRS 9 If any financial asset is credit impaired then credit losses…

Q: On January 1, 2020, the Soondubu Stew Corporation purchased equity securities to be held fo ading…

A: Given, Acquisition cost of securities = P2,000,000 Commission and taxes = P50,000 Fair value of…

Q: Bloom Corporation purchased $1,000,000 of Taylor Company 5% bonds at par with the intent and ability…

A: Bonds: Bonds are long-term promissory notes that are issued by a company while borrowing money from…

Q: Nash Corporation has municipal bonds classified as a held-to-maturity at December 31, 2020. These…

A: Bonds receivable: It is an investment in bonds of an organization which pays a fixed rate of…

Q: On June 1, 2019, Hansen Company purchased ten $1,000 Francisco Company bonds at par and classified…

A: Journal entry: It is prepared to record the financial and non-financial transactions of the business…

Q: On January 1, 2021, an entity purchased marketable equity securities for P5,000,000. The equity…

A: In the given case the equity shares are held for trading purposes.. Any gains or losses for a…

Q: On 1 January 2020, an entity purchased a debt instrument at its face value of P1,000,000. The…

A: As per IFRS expected credit loss is to be recognized in other comprehensive income section of…

Q: Marigold, Inc., purchased $372,000 of its bonds at 95 on June 30, 2020, and immediately retired…

A: Bond's Payable = $372,000 Discount On Bond's Payable = $372,000 — $360,000 = $12,000   Cash =…

Q: Kaman Company paid $165,000 to purchase a portfolio of debt investments on March 1, 2020. Managem…

A: IN Accounting concept of double entry system. double entry system means a transaction affect two…

Q: Oriole Corporation has municipal bonds classified as a held-to-maturity at December 31, 2020. These…

A: Impairment loss = $835,000 - $754,000 = $81,000

Q: On its December 31, 2020, balance sheet, Cullumber Company reported its investment in equity…

A: Investment in equity securities means that one company is holding the share of another company. Fair…

Q: The following information is available for Sheridan Company at December 31, 2020, regarding its…

A: Unrealized holding gain/ (loss)=Fair value-Book=$67,300-$60,500=$6,800

Q: On May 1, 2019, LAG Co. purchased a short-term P2,000,000 face value, 9% debt instruments for…

A: Given, Purchases = P 1,860,000 Face Value = P 2,000,000 Fair value = 98%

Q: On January 1, 2020, Aguilar Corporation purchased bonds with a face value of P4,000,000 for…

A: Where investment are classified as FVTPL, then initially the investments are recorded Fair Value .…

Q: At December 31, 2020, the available-for-sale debt securities for Larkspur, Inc. are as follows.…

A: Unrealized Gain/ Loss - Available of Sale Securities should always reported at fair value. At the…

Q: Bloom Corporation purchased $1,000,000 of Taylor Company 5% bonds at par with the intent and ability…

A: a) prepare appropriate entry at December 31, 2016:

Q: On January 1, 2020, Liam Company purchased bonds with face amount of P10,000,000 for P10,515,000.…

A: Bonds Face amount = P 10000000 Cash paid for bonds = P 10515000 December 31 , 2020 bonds are quoted…

Q: Morley Company in its first year of operations provides the following information related to one of…

A: Available for sale securities are purchased  with an intent to sell in the near future but not to…

Q: Marigold Company in its first year of operations provides the following information related to one…

A: Journal: Recording of a business transactions in a chronological order.

Q: For several years Fister Links Products has held Microsoft bonds, considered by the company to be…

A:

Q: On June 1, 2019, Hansen Company purchased twenty $1,000 Francisco Company bonds at par and…

A: As per US GAAP, an asset should be impaired if there are any circumstances which leads to reduction…

Q: Ferraro, Inc. established a stock-appreciation rights (SARs) program on January 1, 2020, which…

A:

Q: On October 1, 2021, Valorant Company purchased a debt security having a face value of P3,000,000…

A: In case of investment  in debt security  is measured  at FVTOCI ,initially  the investment  should…

Q: In its first year of operations, Sandhill Corporation purchased available-for-sale debt securıties…

A: When Available for sale securities are purchased, the record is made in fair value. The difference…

Q: Sandhill Company purchased, on January 1, 2020, as an available-for-sale security, $69,000 of the…

A: Journal entry: Journal entry is a set of economic events which can be measured in monetary terms.…

Q: Komissarov Company has a debt investment in the bonds issued by Keune Inc. The bonds were purchased…

A: Given information is: Komissarov Company has a debt investment in the bonds issued by Keune Inc. The…

Q: On April 1, year 1, the entity purchased P200,000 face value, 9% Treasury Notes for P198,500,…

A: On April 1 of Year 1, Company purchased face value = P200000 Cost of purchase of 9% of Treasury…

Q: On December 31, the bonds had a fair value of $203,700. The entry to record the year-end adjustment…

A: At the time of reporting period, the gain or loss on holding the bond should be accounted. If the…

Q: During the current year, Reed Consulting acquired long-term available-for-sale debt securities on…

A: Given information is: During the current year, Reed Consulting acquired long-term available-for-sale…

Q: At December 31, 2019, Wayne Company owned note payable of P1,950,000, due March 15, 2020. Wayne…

A: Current liabilities are those liabilities which are due within a year and are to repaid within a…

Q: On January 1, 2020, Waterway Corporation purchased 40% of the common shares of Wildhorse Company for…

A: Solution:   Journal Entries S. no. Account title and explanation Debit Credit 1) Investment…

Q: On December 31, 2020, Petra Company invests $42,000 in Valery, a variable interest entity. In…

A: A balance sheet is a financial statement that depicts a company's assets, liabilities, and…

Q: On January 1, 2020, Ayayai Corporation purchased 20% of the common shares of Pina Company for…

A: Share in dividend = total dividend paid x 20% = 17750*20% = $3550

Q: On January 1, 2016, Covid Corp., purchased debt securities for cash of P765,540 to be held as…

A:

Q: Your accounting firm was engaged as the auditor of Chismosa Company for the examination of its…

A:

Q: , 2018, ABC Company borrowed P1,000,000 on a 10% five-year note payable. On December 31, 2018, the…

A: Basic Accounting Concepts, Note Payable

Consolidation

Consolidation in general examination implies an asset oscillating between well-defined methods of trading status. Consolidation is commonly known as market indecisiveness, which completes when the asset's values move forward or backward the trading structure.