Horngren's Financial & Managerial Accounting Plus Mylab Accounting With Pearson Etext -- Access Card Package (5th Edition) (miller-nobles Et Al., The Horngren Accounting Series)
5th Edition
ISBN: 9780134077345
Author: Tracie L. Miller-Nobles, Brenda L. Mattison, Ella Mae Matsumura
Publisher: PEARSON
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Chapter 10, Problem 10.15E
1.
To determine
Trading Investments:
Trading investments are the investments in debt or equity securities where the investor holds less than 20% of the voting stock. The investor wishes to sell these investments at a short notice like in a few days, week, or months to generate some profit out of it. They are treated as current assets.
To Journalize: The transaction of HT Publishers’ in G’s stock for the year 2016.
2.
To determine
To journalize: The sale of investment in stock.
3.
To determine
To identify: The account(s) and amount(s) which HT Publishers would report in its balance sheet for the year ended December 31, 2016.
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Students have asked these similar questions
On December 31, 2017, Nameless Inc. provided you with the following information regarding its trading securities.
December 31, 2017
Investments (Trading) Cost Fair Value
SKN Inc. stock $ 40,000 $ 46,000
Derby Co. stock 101,000 99,500
Google Corp. stock 31,000 34,500
Total of portfolio $172,000 $ 180,000
All of the securities were purchased during 2017 and < 20% of total share of the company.
During 2018, Nameless sold its Google Corp. stock for $33,200. The fair value of the stock on December 31, 2018, was: SKN Inc. stock—$47,600; Derby Co. stock—$95,400.
(3a) Prepare the adjusting journal entry needed on December 31, 2017.
(3b) Prepare the journal entry to record the sale of the Google Corp. stock during 2018.
(3c) Prepare the adjusting journal entry needed on December 31, 2018.
Insta Corp. invests in shares of other companies in 2015 for generating profit as shown below;
Market Value Dec. 31
Security
Purchase
date
2016
Date sold
Selling price
Cost
2015
DT
June 2015
48.000TL
54.000TL T 60.800TL
Feb. 2017
59.600TL
EA
June 2015
116.000TL
104.800TL
March
114.000TL
2016
a. Classify each investment as trading or available for sale.
DT:
EA:
b. Prepare the necessary journal entries for Insta Corp. (Hint: entries for purchase of securities, adjusting
entries at Dec.31 2015 and 2016, entries for sale of securities).
Information pertaining to long-term stock investments in 2014 by Bell Inc. follows: Obtained significant influence over Paul Company by buying 30% of Paul's 100,000 outstanding shares of common stock at a total cost of $22 per share on January 1, 2014. On June 15, Paul Company declared and paid a cash dividend of $1.50 per share. On December 31, Paul's reported net income was $280,000.
Instructions Prepare all necessary journal entries for 2014 for Bell Corporation.
Chapter 10 Solutions
Horngren's Financial & Managerial Accounting Plus Mylab Accounting With Pearson Etext -- Access Card Package (5th Edition) (miller-nobles Et Al., The Horngren Accounting Series)
Ch. 10 - Prob. 1QCCh. 10 - Which of the following investments is most likely...Ch. 10 - If Intervale Railway invests 100,000 in 5% bonds...Ch. 10 - Prob. 4QCCh. 10 - Prob. 5QCCh. 10 - Prob. 6QCCh. 10 - Prob. 7QCCh. 10 - Harvard Co. purchased a trading investment on...Ch. 10 - Prob. 9QCCh. 10 - Prob. 10QC
Ch. 10 - What is a debt security?Ch. 10 - Prob. 2RQCh. 10 - Prob. 3RQCh. 10 - Briefly describe the five specific types of debt...Ch. 10 - How is the purchase of a held-to-maturity debt...Ch. 10 - Prob. 6RQCh. 10 - What method is used for investments in equity...Ch. 10 - What method is used for investments in equity...Ch. 10 - What adjustment must be made at the end of the...Ch. 10 - Where on the financial statements is an unrealized...Ch. 10 - Prob. 11RQCh. 10 - Prob. 12RQCh. 10 - Prob. 13RQCh. 10 - What does the rate of return on total assets...Ch. 10 - Identifying why companies invest and classifying...Ch. 10 - Prob. 10.2SECh. 10 - Prob. 10.3SECh. 10 - Accounting for equity method On January 1, 2016,...Ch. 10 - Accounting for trading investments On February 1,...Ch. 10 - Prob. 10.6SECh. 10 - Computing rate of return on total assets Kabra's...Ch. 10 - Prob. 10.8ECh. 10 - Prob. 10.9ECh. 10 - Accounting for bond investments Otter Creek Co....Ch. 10 - Accounting for stock investments Dollar Bill...Ch. 10 - Prob. 10.12ECh. 10 - Prob. 10.13ECh. 10 - Accounting for stock investments Suppose that on...Ch. 10 - Prob. 10.15ECh. 10 - Prob. 10.16ECh. 10 - A Accounting for bond investments Suppose Jenner...Ch. 10 - Prob. 10.18APCh. 10 - Accounting for stock investments The beginning...Ch. 10 - Accounting for bond investments Suppose Ritter...Ch. 10 - Classifying and accounting for stock investments...Ch. 10 - Accounting for stock investments The beginning...Ch. 10 - Prob. 10.23CPCh. 10 - Prob. 10.1CTEICh. 10 - Wild Adventure conducts tours of wildlife reserves...Ch. 10 - Prob. 10.1CTFSCCh. 10 - Prob. 10.1CTTPCh. 10 - In 150 words or fewer, explain the difference...
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