View Policies Current Attempt in Progress For each of the following transactions, classify it as an operating, investing, financing, or significant noncash investing and financing activity or "none of the above" and assuming the company follows ASPE. (a) Repayment of mortgage payable (b) Payment of interest on mortgage (c) Purchase of land in exchange for common shares (d) Issue of preferred shares for cash (e) Payment for the purchase of a trading investment (f) Collection of accounts receivable (g) Declaration of cash dividend (h) Payment of cash dividend (i) Cash purchase of inventory (i) Recording of depreciation expense (k) Purchase and cancellation of common shares

View Policies Current Attempt in Progress For each of the following transactions, classify it as an operating, investing, financing, or significant noncash investing and financing activity or "none of the above" and assuming the company follows ASPE. (a) Repayment of mortgage payable (b) Payment of interest on mortgage (c) Purchase of land in exchange for common shares (d) Issue of preferred shares for cash (e) Payment for the purchase of a trading investment (f) Collection of accounts receivable (g) Declaration of cash dividend (h) Payment of cash dividend (i) Cash purchase of inventory (i) Recording of depreciation expense (k) Purchase and cancellation of common shares

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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The following terms were introduced in this chapter: Strategic investments Non-strategic investments Investments at fair value through profit or loss (FVTPL) Investments at amortized cost (AC) Match each term with the following definitions: _________ Debt securities that are held to earn interest income _________ Investments purchased to influence or control another company _________ Debt or equity investments that require holding gains or losses to be included in the determination of the company’s profit or loss. _________ Investments purchased mainly to generate investment income
For each case of a financial asset that is not related to one another, explain (must be accompanied by an explanation) whether meeting the contractual cash flow test consists of only principal and interest: 1) Investments in debt instruments in the form of bonds with a specified maturity date. The bonds have a predetermined principal payment and interest on the principal amount payable is linked to the stock equity index on the stock exchange 2) Investments in debt instruments in the form of bonds from toll road management companies, whose contractual cash flows from these financial assets change according to the number of motorized vehicles that use certain toll roads. 3) Investments in debt instruments with a specified maturity date. A variable interest rate which gives the borrower the option of choosing a market rate of three months LIBOR for three months or one month LIBOR for one month
Which of the following is not classified as an Investment Account -Investment in Subsidiary -Cash fund held for a long term purpose -Investment in Associates -Investment with a maturity period of 3 months and is also highly liquid 2. Financial Asset at Fair Value under OCI would have its gain or loss reported at what Financial Statement? -Changes in Owners Equity -Balance Sheet -Income Statement -Cash Flow 3. Debt Instrument investment can be classified under the following, Except? -Held to Maturity -At Amortized Cost -FAFVOCI -FAFVPL 4. When the Company Trades with an Investment in Associate, the Reported net income of the Parent Company should report the Intercompany transaction as? (1 Point) -As Inventory -An eliminated Entry -As Expense -As income
Operating activities include cash inflows from Select answer from the options below A. collection of principal on loans to other entities. B. sale of debt or equity investments. C. sale of property, plant, and equipment. D. dividends from equity investments.
Which will demonstrate an agreement to refinance (choose the incorrect one)? Group of answer choices 1.Equity security has in fact been issued before the issuance of the financial statements for the purpose of refinancing. 2.Preferred stock has in fact been issued before the issuance of financial statements for the purpose of obtaining working capital. 3.Before the issuance of the financial statements, the enterprise has in fact entered into a financing agreement that clearly permits the enterprise to refinance the currently maturing long-term debt on a long-term basis. 4.Long-term obligation has in fact been issued before the issuance of the financial statements for the purpose of refinancing.
Investment documents are discussed in this week’s chapters. How does the accounting for investments vary according to the type of investment (i.e., negotiable documents, available-for-sale documents and documents held until maturity)? What are the differences between debt and equity documents?
Ownership of debt instruments of the government and other companies that can be readily converted to cash are best reported as: Select one: a. long-term investments. b. intangibles c. marketable securities. d. Cash.
Assume that Fielder Enterprises uses the following headings on its balance sheet. a. Current assets. b. Investments. c. Property, plant, and equipment. d. Intangible assets. e. Other assets. f. Current liabilities. g. Long-term liabilities. h. Capital stock. i. Equity attributed to noncontrolling interest. j. Paid-in capital in excess of par. k. Retained earnings. Instructions Indicate by letter how each of the following usually should be classified. If an item should appear in a note to the financial statements, use the letter “N” to indicate this fact. If an item need not be reported at all on the balance sheet, use the letter “X.” 1. Prepaid insurance. 2. Stock owned in affiliated companies. 3. Unearned service revenue. 4. Advances to suppliers. 5. Unearned rent revenue. 6. Preferred stock. 7. Additional paid-in capital on preferred stock. 8. Copyrights. 9. Petty cash fund. 10. Sales taxes payable. 11. Accrued…
A) Comment on any significant changes in each company in the composition of current assets and current liabilities. Explain. b) Which assets in each company have the most significant investment? Why? c) Are the companies financed primarily with debt or equity? Why?
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a.Prepare the related journal entries of the debt investment for the year 2018. b.Prepare journal entries to record the purchase, the fair value adjustment and the selling of investment in Gemilang Bhd. c. Prepare journal entries to record the purchase, the dividend received and the fair value adjustment of investment in Harmoni Bhd. d.Explain FOUR (4) reasons why companies can use the financial assets to sustain the business during the COVID-19 pandemic.
choose from the following accounts: Accumulated Other Comprehensive Income Allowance for Investment Impairment Bond Investment at Amortized Cost Cash Commission Expense Dividends Receivable Dividend Revenue FV-NI Investments FV-OC|Investments Gain on Disposal of Investments - FV-NI Gain on Disposal of Investments - FV-OCI Gain on Sale of Investments GST Receivable Interest Expense Interest Income Interest Payable Interest Receivable Investment in Associate Investment Income or Loss Loss on Discontinued Operations Loss on Disposal of Investments FV-NI Loss on Disposal of Investments FV-OCI Loss on Impairment Loss on Sale of Investments No Entry Note Investment at Amortized Cost Other Investments Recovery of Loss from Impairment Retained Earnings Unrealized Gain or Loss Unrealized Gain or Loss - OCI