HORNGREN'S FINANCIAL & MANGERIAL ACCOUNT
7th Edition
ISBN: 9780136505273
Author: MILLER-NOBLES
Publisher: PEARSON
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Textbook Question
Chapter 10, Problem 8QC
Harvard Co. purchased a trading investment on December 1 of the current year for $30,000. The market value of the stock investment at-year-end is $36,000. What value will be reported in net income for the adjustment, if any?
a. $36,000
b. $(6,000)
c. $6,000
d. $30,000
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A. Gympa reported on its income statement a net income $647,000 for the year ended December 31 before considering the following:
During the year, Gympa purchased trading securities
At year-end , the fair value of the investment portfolio was $50,000 lesshan the cost
The balance of Retained Earnings was $792,000 on January 1
Gympa paid $67,000 in cash dividends during the year.
Using the above data, calculate the balance of Retained Earnings on Decemeber 31.
A. The Nile House of Fashion has Asset Turnover of 2.65X. What does it mean?
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Gympa reported on its income statement a net income $647,000 for the year ended December 31 before considering the following:
a. During the year, Gympa purchased trading securities
b. At year-end , the fair value of the investment portfolio was $50,000 lesshan the cost
c. The balance of Retained Earnings was $792,000 on January 1
d. Gympa paid $67,000 in cash dividends during the year.
Using the above data, calculate the balance of Retained Earnings on Decemeber 31.
BI's income for the year ended December 31, 2021 was $ 4,000,000. This was earned
evenly over the year. In addition BI paid dividends of $ 300,000 each on March 31,
June 30, September 30 and December 31, 2021 to their shareholders of records on
that date. The inventory on July 1, 2021 was 75% sold as of December 31, 2021.
Required.
For the investment in AI
1. Using IFRS 9 prepare the journal entries for DC for all of 2021.
2. Using ASPE prepare the journal entries for DC for all of 2021.
For the investment in BI
3. Using IFRS prepare the journal entries for DC for 2021.
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Chapter 10 Solutions
HORNGREN'S FINANCIAL & MANGERIAL ACCOUNT
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...
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