Splendid Company purchased equity securities during 2020 to be held as investments. The cost and market value of the investmentsareCostMarketDecember 31, 2000Trading securities2.000.0002.500.000Securities not held for trading3.000.0002.500,000December 31, 2021Trading securities2.000.0002.200,000Securities not held for trading3,000.0002.300,000The securities not held for trading are measured at fair value through other comprehensive income by irevocable election.Requirement Complete the table below. Wrte zero (0) it is not applicable.December 31, 2019December 31, 2020December 31. 2021Statement of Financial PositionInvestments - FVPLInvestments - FVOCIStatement of Changes in EquityCther Comprehensive IncomeRetained earningsStatement of Comprehensive IncomeNet income - Unrealized gainloss)Net income Realized gainloss)Cther Comprehensive income-Unrealized gainloss)

Financial Management: Financial management comprises of two words i.e. Finance and management.…

Splendid Company purchased equity securties during 2020 to be heid as investments. The cost and market value of the investments Cost Market December 31, 2000 Trading securties 2000.000 2.500.000 Securities not heid for trading 3.000.000 2.00.000 December 31, 2021 Trading securities 2000.000 2.200.000 Securities not heid for trading 3.000.000 2.300.000 The securties not heid for trading are measured at fair value through other comprehensive income by imevocabie election. Requirement Complete the table below. Write zero (0) eis not applicable. December 31. 2019 December 31. 2000 December 31, 2021 Statement of Financial Position Investments - FVPL Investments - FPVOCI Statement of Changes in Equity Cther Comprehensive income Retained eamings Statement of Comprehensive income Net income- Unvealized gainloss) Net income - Realized gainloss) Cher Comprehensive income- Unrealized gainoss)

Splendid Company purchased equity securties during 2020 to be heid as investments. The cost and market value of the investments Cost Market December 31, 2000 Trading securties 2000.000 2.500.000 Securities not heid for trading 3.000.000 2.00.000 December 31, 2021 Trading securities 2000.000 2.200.000 Securities not heid for trading 3.000.000 2.300.000 The securties not heid for trading are measured at fair value through other comprehensive income by imevocabie election. Requirement Complete the table below. Write zero (0) eis not applicable. December 31. 2019 December 31. 2000 December 31, 2021 Statement of Financial Position Investments - FVPL Investments - FPVOCI Statement of Changes in Equity Cther Comprehensive income Retained eamings Statement of Comprehensive income Net income- Unvealized gainloss) Net income - Realized gainloss) Cher Comprehensive income- Unrealized gainoss)

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 8P

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Trading Securities Pear Investments began operations in 2020 and invests in securities classified as trading securities. During 2020, it entered into the following trading security transactions: Purchased 20,000 shares of ABC common stock at $38 per share Purchased 32,000 shares of XYZ common stock at $17 per share At December 31, 2020, ABC common stock was trading at $39.50 per share and XYZ common stock was trading at $16.50 per share. Required: 1. Prepare the necessary adjusting entry to value the trading securities at fair market value. 2. CONCEPTUAL CONNECTION What is the income statement effect of this adjusting entry?
Refer to the information in RE13-11. Assume that on December 31, 2019, the investment in Cornett Company stock has a market value of 10,500. Prepare the year-end journal entry to record the unrealized gain or loss.
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.
Refer to the information in RE13-5. Assume that on December 31, 2019, the investment in Smith Corporation bonds has a market value of 12,500. Prepare the year-end journal entry to record the unrealized gain or loss.
Mills Company had five 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 convertible security is described in the following table. The 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 the securities would be included in the diluted earnings per share computations.
Investments On October 4, 2019, Collins Company purchased 100 bonds of Steph Company for 6,400 as a short-term investment in securities classified as available for sale. On December 31, 2019, the bonds had a fair value of 6,300, and on February 8, 2020, Collins sold the bonds for 6,700. Required: In journal entry form, prepare the spreadsheet entries to record these transactions for Collins Companys 2019 and 2020 statement of cash flows.
Investments in Equity Securities Noonan Corporation prepares quarterly financial statements and invests its excess funds in marketable securities. At the end of 2018, Noonans portfolio of investments consisted of the following equity securities: Dunne the first half of 2019, Noonan engaged in the following investment transactions: Required: 1. Record Noonans investment transactions for January 6 through June 30, 2019. 2. Show the items of income or loss from investment transactions that Noonan reports for each of the first and second quarters of 2019. 3. Show how the preceding items are reported on the first and second quarter 2019 ending balance sheets, assuming that management expects to dispose of the Keene and Sachs securities within the next year.