Required informationUse the following information for the Exercises below. (Algo)[The following information applies to the questions displayed below.]On December 31, Mars Company had the following portfolio of stock investments with insignificant influence. Mars had nostock investments in prior periods.Stock InvestmentsApple stockChipotle stockUnder Armour stockView transaction listExercise 15-10 (Algo) Fair value adjustment to stock investments with insignificant influence LO P4Prepare the December 31 adjusting entry to report these investments at fair value.Cost$ 5,3003,40010,100Journal entry worksheet< 1Fair Value$ 9,3001,50014,600Note: Enter debits before credits.Record the year-end adjustment to fair value, if any.

Stock investments are one of the important assets which are reported in the balance sheet. For these…

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Excel Applications for Accounting Principles

4th Edition

ISBN:9781111581565

Author:Gaylord N. Smith

Publisher:Gaylord N. Smith

ChapterMB: Model-building Problems

Section: Chapter Questions

Problem 4M

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Use the following information on a company’s investments in equity securities to answer questions 1- 2 below. The company’s accounting year ends December 31. Investment Date of acquisition Cost Fair value 12/31/16 Date sold Selling price Ajax Company stock 6/20/16 $40,000 $35,000 2/10/17 $32,000 Bril Corporation stock 5/1/16 20,000 N/A 11/15/16 26,000 Coy Company stock 8/2/16 16,000 16,500 1/17/17 23,000 1. If the above investments are categorized as trading securities, what amount is reported for gain or loss on securities, on the 2016 income statement? 2. If the above investments are categorized as trading securities, what amount is reported for gain or loss on securities, on the 2017 income statement?
Walsh, Inc. began business on January 1, 2002, and at December 31, 2002, Walsh had the following investment portfolios of equity securities: FVPL FVOCI Aggregate cost ₱150,000 ₱225,000 Aggregate fair value 120,000 185,000 None of the declines is judged to be other than temporary. Unrealized losses at December 31, 2002, should be recorded with corresponding charges against Profit or loss Equity Profit or loss Equity 70,000 0 30,000 40,000 40,000 30,000 0 70,000
Access the FASB Accounting Standards Codification at the FASB website ( asc.fasb.org ). Determine the specific citation for accounting for each of the following items: 1. Initial measurement of stock options. 2. The measurement date for share-based payments classified as liabilities. 3. The formula to calculate diluted earnings per share. 4. The way stock dividends or stock splits in the current year affect the presentation of EPS in the income statement.
During the month, Blue, Inc. purchased 1,050 shares for $7.00 per share and classified them as trading investments. At the end of the month, the price of the securities was $11.25 per share. What adjusting entry, if any, will Blue, Inc. record when it closes its books at the end of the month to reflect this change in value?ᐧ a Dr. Valuation Allowance for Trading Investments $11,812.50 Cr. Unrealized Gain on Trading Investments $11,812.50 b Dr. Unrealized Loss on Trading Investment $4,462.50 Cr. Valuation Allowance for Trading Investments $4,462.50 c Dr. Valuation Allowance for Trading Investments $4,462.50 Cr. Unrealized Gain on Trading Investments $4,462.50 Because the trading investments were not sold during the month, no adjusting entry is required. d Dr. Valuation Allowance for Trading Investments $4,462.50 Cr. Realized Gain on Trading Investments $4,462.50
Prepare Tiker Company's journal entries to record the following transactions and the adjusting entry to record the fair value of the stock investments portfolio. This is the first and only time the company purchased such securities. May 9 Purchases 240 shares of Higo stock as a short-term investment at a cost of $29 per share. Tiker has insignificant influence over Higo. June 2 Sells 40 shares of its investment in Higo stock ($1,160 cost) at $32 per share. Dec. 31 The closing market price (fair value) of the Higo stock is $27 per share. Purchases 240 shares of Higo stock as a short-term investment at a cost of $29 per share. Tiker has insignificant influence over Higo. Note: Enter debits before credits. Date General Journal Debit Credit May 09 Sells 40 shares of its investment in Higo stock at $32 per share. Note: Enter debits before credits.…
Which of the following describes preferred stock? a. Stock that sells for a very high price b. Stock that is purchased by the corporation for investment purposes c. Stock that is sold to employees of the company as a performance incentive d. Stock which gives shareholders certain preferences and advantages over common stock Clear my choice Question 10 Not yet answered Marked out of 1.00 Flag question Question text Supper Company Ltd., reported the following stockholders’ equity on its balance sheet at June 30, 2021: Supper Company Ltd. Stockholders’ Equity June 30,2021 Paid-in Capital Preferred stock, 10%,? par, 650,000 shares authorized, 280,000 shares issued $ 1,400,000 Common stock, par value $? per share, 5,000,000 shares authorized, 1,000,000 shares issued and outstanding 2,000,000 Paid-in capital in excess of par—common 6,000,000 Retained Earnings 12,300,000 Which of the following is the correct total…
PLEASE ANSWER THIS QUESTION ASAP. THANK YOU SO MUCH. In connection with your audit of the financial statements of the Pin Shop Company for the year 2020, the following investment in Ordinary shares and dividend income accounts were presented to you: Investment in ordinary shares Date    Description                                                                  Ref.                 Debit    Credit 01/15   10,000 O/S, par value P75, SPIKES CO.                  VR-18             585,000 04/30   5,000 shares SPIKES Co. received as share div.     CJ-7                375,000 05/20   Sold 5,000 shares @ P37.5                                       CR-21                         187,500 12/10   Sold 2,000 shares @ P90                                          CR-S2                         180,000 Dividend Income Date    Description                                                                  Ref.                 Debit    Credit 04/30   Share Dividend…
PLEASE ANSWER THIS QUESTION ASAP. THANK YOU SO MUCH. In connection with your audit of the financial statements of the Pin Shop Company for the year 2020, the following investment in Ordinary shares and dividend income accounts were presented to you: Investment in ordinary shares Date    Description                                                                  Ref.                 Debit    Credit 01/15   10,000 O/S, par value P75, SPIKES CO.                  VR-18             585,000 04/30   5,000 shares SPIKES Co. received as share div.     CJ-7                375,000 05/20   Sold 5,000 shares @ P37.5                                       CR-21                         187,500 12/10   Sold 2,000 shares @ P90                                          CR-S2                         180,000 Dividend Income Date    Description                                                                  Ref.                 Debit    Credit 04/30   Share Dividend…
PLEASE ANSWER THIS QUESTION ASAP. THANK YOU SO MUCH. In connection with your audit of the financial statements of the Pin Shop Company for the year 2020, the following investment in Ordinary shares and dividend income accounts were presented to you: Investment in ordinary shares Date    Description                                                                  Ref.                 Debit    Credit 01/15   10,000 O/S, par value P75, SPIKES CO.                  VR-18             585,000 04/30   5,000 shares SPIKES Co. received as share div.     CJ-7                375,000 05/20   Sold 5,000 shares @ P37.5                                       CR-21                         187,500 12/10   Sold 2,000 shares @ P90                                          CR-S2                         180,000 Dividend Income Date    Description                                                                  Ref.                 Debit    Credit 04/30   Share Dividend…
Carlsville Company began operations in the current year and had no prior stock investments. The following transactions are from its short-term stock investments with insignificant influence. Prepare journal entries to record these transactions. On December 31, prepare the adjusting entry to record the fair value adjustment for the portfolio of stock investments. July 22 Purchased 1,600 shares of Hunt Corp. at $30 per share. Sep. 5 Received a $2 cash dividend for each share of Hunt Corp. Sep. 27 Purchased 3,400 shares of HCA at $34 per share. Oct. 3 Sold 1,600 shares of Hunt at $25 per share. Oct. 30 Purchased 1,200 shares of Black & Decker at $50 per share. Dec. 17 Received a $3 cash dividend for each share of Black & Decker. Dec. 31 Fair value of the short-term stock investments is $180,000.
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?
Prepare Tiker Company’s journal entries to record the following transactions and the adjusting entry to record the fair value of the stock investments portfolio. This is the first and only time the company purchased such securities. May 9 Purchases 200 shares of Higo stock as a short-term investment at a cost of $30 per share. Tiker has insignificant influence over Higo. June 2 Sells 20 shares of its investment in Higo stock ($600 cost) at $33 per share. Dec. 31 The closing market price (fair value) of the Higo stock is $23 per share.

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