Please refer to the picture. Faye Company provided the following data for the current year.Problem 17-26 (AICPA Adapted)ProbleGain on eale ofequipmentProceeds from sale of equipmentDuringactivitFurchase of Ace bonde, face amount, P2,000,000Amortization of bond diecountDividend declaredDividend paidPaymeboPayminCarryProceeds from sale of treasury shares withcarrying amount of P650,000750,0001. What is net cash used in financing activitiesProcea. 4,000,000b. 3,350,000c. 3,750,000d. 3,250,000Wha.b.c.d.2. What is net cash used in investing activities?a. 1,600,000O 1,700,000c. 1,500,000d. 1,800,000PKyProblem 17-27 (IFRS)Zoe Company reported net income of P3,400,000 for .current year. The net income included depreciation oP840,000 and a gain on sale of equipment of P170,000.The equipment had an original cost of P4,000,000 andaccumulated depreciation of P2,400,000. All of the followingaccounts increased during the current year.PatentPrepaid rentFinancial asset at fair value through othercomprehensive income (FVOCI)Bonds payable450,000680,000100,000500,000What amount should be reported as net cash flow frominvesting activities?a. 1,720,000 providedb. 1,220,000 provided540,000 providedd.c.380,000 used532

Cash flow statement: It is a financial statement that record the cash related transactions to…

Zoe Company reported net income of P3,400,000 for the current year. The net income included depreciation o P840,000 and a gain on sale of equipment of P170,000. The equipment had an original cost of P4,000,000 and accumulated depreciation of P2,400,000. All of the following accounts increased during the current year. 450,000 680,000 Patent Prepaid rent Financial asset at fair value through other comprehensive income (FVOCI) Bonds payable 100,000 500,000 What amount should be reported as net cash flow from investing activities? a. 1,720,000 provided 6. 1,220,000 provided 540,000 provided d. c. 380,000 used

Zoe Company reported net income of P3,400,000 for the current year. The net income included depreciation o P840,000 and a gain on sale of equipment of P170,000. The equipment had an original cost of P4,000,000 and accumulated depreciation of P2,400,000. All of the following accounts increased during the current year. 450,000 680,000 Patent Prepaid rent Financial asset at fair value through other comprehensive income (FVOCI) Bonds payable 100,000 500,000 What amount should be reported as net cash flow from investing activities? a. 1,720,000 provided 6. 1,220,000 provided 540,000 provided d. c. 380,000 used

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

ChapterA2: Investments

Section: Chapter Questions

Problem 7MCQ

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SLC Corp. has the following portfolio of securities acquired for trading purposes and accounted for using the FV-NI model. SLC Inc. prepares financial statements every quarter. At Sept 30, 2021, the end of the company’s third quarter, the following information was reported: Investment Cost Fair Value 50,000 Common Shares – Seneca Inc. $215,000 $200,000 3,500 Preferred Shares – Loyalist Inc. $135,000 $140,000 2,000 Common Shares – Algonquin Inc. $180,000 $179,000 Transactions that occurred in the fourth quarter: Oct 8, 2021 The Seneca Shares were sold for $4.30 per share Nov 16, 2021 3,000 common shares of Humber Inc. were purchased at $44.50 per share SLC Inc. pays a 1% commission on purchase and sales of all securities. At the end of the fourth quarter, on December 31, 2021, the fair value of the shares were as follows: Investment Fair Value Loyalist Inc. $106,000 Algonquin Inc. $203,000 Humber Inc. $122,000 Instructions: Prepare the journal entries to record the sale, purchase and…
Presented below is selected information related to the financial instruments of Pronghorn Company at December 31, 2020. This is Pronghorn Company’s first year of operations. CarryingAmount Fair Value(at December 31) Investment in debt securities (intent is to hold to maturity) $42,700 $43,600 Investment in Chen Company stock 848,500 952,100 Bonds payable 237,600 213,400 (a) Pronghorn elects to use the fair value option for these investments. Assuming that Pronghorn’s net income is $106,200 in 2020 before reporting any securities gains or losses, determine Pronghorn’s net income for 2020. Assume that the difference between the carrying value and fair value is due to credit deterioration. Pronghorn’s net income for 2020 $ (b) Record the journal entry, if any, necessary at December 31, 2020, to record the fair value option for the bonds payable. (Credit account titles are automatically indented when amount is entered. Do not indent manually.…
Stoll Co.'s long-term available-for-sale portfolio at the start of this year consists of the following. Available-for-Sale Securities Cost Fair Value Company A bonds $ 534,900 $ 492,000 Company B notes 159,290 145,000 Company C bonds 662,500 641,740 Stoll enters into the following transactions involving its available-for-sale debt securities this year. Jan. 29 Sold one-half of the Company B notes for $78,130. July 6 Purchased bonds of Company X for $125,100. Nov. 13 Purchased notes of Company Z for $268,000. Dec. 9 Sold all of the bonds of Company A for $515,300. The fair values at December 31 are B, $80,300; C, $606,800; X, $101,000; and Z, $271,000. Required:1. Prepare journal entries to record these transactions, including the December 31 adjusting entry to record the fair value adjustment for the long-term investments in available-for-sale securities.2. Determine the amount Stoll reports on its December 31 balance…