Investment : The act of allocating money to buy a monetary asset, in order to generate wealth in the future is referred to as investment. Available-for-sale (AFS) securities : These are short-term or long-term investments in debt and equity securities with an intention of holding the investment for some strategic purposes like meeting liquidity needs or manage interest risk. To Locate: The annual report of a public company that includes the footnote describing the securities available for sale, using the EDGAR in the SEC website.

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Answer 1

Question

Chapter 12, Problem 12.2BYP

1.

To determine

Investment: The act of allocating money to buy a monetary asset, in order to generate wealth in the future is referred to as investment.

Available-for-sale (AFS) securities: These are short-term or long-term investments in debt and equity securities with an intention of holding the investment for some strategic purposes like meeting liquidity needs or manage interest risk.

To Locate: The annual report of a public company that includes the footnote describing the securities available for sale, using the EDGAR in the SEC website.

2.

To determine

To Identify: The caption under which the securities are reported in the comparative balance sheets and to whether they are classified as current or non-current assets.

3.

To determine

To Explain: The method of reporting the realized gains and losses, in the comparative income statement.

4.

To determine

To Explain: The method of reporting the unrealized gains and losses, in the comparative statements and the shareholder’s equity.

5.

To determine

To Explain: Under what head accumulated unrealized gains or losses identifiable in the comparative balance sheets. And the reason for not reporting them in the Income Statement.

6.

To determine

To Explain: The information provided by the changes in the cash flow of these investments in the statement of cash flow.

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Problem 12-9 (Algo) Securities held-to-maturity; trading securities and equity investments [LO12-1, 12-2, 12-3, 12-5] Amalgamated General Corporation is a consulting firm that also offers financial services through its credit division. From time to time the company buys and sells securities. The following selected transactions relate to Amalgamated’s investment activities during the last quarter of 2021 and the first month of 2022. The only securities held by Amalgamated at October 1, 2021 were $48 million of 10% bonds of Kansas Abstractors, Inc., purchased on May 1, 2021 at face value and held in Amalgamated’s trading securities portfolio. The company’s fiscal year ends on December 31. 2021 Oct. 18 Purchased 2 million shares of Millwork Ventures Company common stock for $79 million. Millwork has a total of 48 million shares issued. 31 Received semiannual interest of $2.4 million from the Kansas Abstractors bonds. Nov. 1 Purchased 10% bonds of Holistic Entertainment Enterprises at…

P 12-9 Securities held-to-maturity; trading securities and equity investments LO12-1, LO12-2, LO12-3,LO12-5 Amalgamated General Corporation is a consulting firm that also offers financial services through its credit division. From time to time the company buys and sells securities. The following selected transactions relate to Amalgamated's investment activities during the last quarter of 2024 and the first month of 2025. The only securities held by Amalgamated at October 1, 2024 were $30 million of 10% bonds of Kansas Abstractors, Inc., purchased on May 1, 2024 at face value and held in Amalgamated's trading securities portfolio. The company's fiscal year ends on December 31. 2024 Oct. 18 31 Nov. 1 1 Dec. 1 20 21 23 29 31 2025 Jan. 7 Purchased 2 million shares of Millwork Ventures Company common stock for $58 million. Millwork has a total of 30 million shares issued. Received semiannual interest of $1.5 million from the Kansas Abstractors bonds. Purchased 10% bonds of Holistic…

Required information Problem 15-3A (Algo) Debt investments in available-for-sale securities; unrealized and realized gains and losses LO P3 [The following information applies to the questions displayed below] Stoll Company's long-term available-for-sale portfolio at the start of this year consists of the following. Available-for-Sale Securities Cost Company A bonds Company B notes $530,700 159,250 Fair Value $ 495,000 151,000 647,710 Company C bonds 661,000 Stoll enters into the following transactions involving its available-for-sale debt securities this year. January 29 Sold one-half of the Company B notes for $78,000. July 6 Purchased Company X bonds for $123,600. November 13 Purchased Company Z notes for $267,900. December 9 Sold all of the Company A bonds for $518,300. Fair values at December 31 are B. $84,300; C, $604,800, X, $100,000, and Z, $288,000. Problem 15-3A (Algo) Part 1 and 2

Answer 2

Question

Chapter 12, Problem 12.2BYP

1.

To determine

Investment: The act of allocating money to buy a monetary asset, in order to generate wealth in the future is referred to as investment.

Available-for-sale (AFS) securities: These are short-term or long-term investments in debt and equity securities with an intention of holding the investment for some strategic purposes like meeting liquidity needs or manage interest risk.

To Locate: The annual report of a public company that includes the footnote describing the securities available for sale, using the EDGAR in the SEC website.

2.

To determine

To Identify: The caption under which the securities are reported in the comparative balance sheets and to whether they are classified as current or non-current assets.

3.

To determine

To Explain: The method of reporting the realized gains and losses, in the comparative income statement.

4.

To determine

To Explain: The method of reporting the unrealized gains and losses, in the comparative statements and the shareholder’s equity.

5.

To determine

To Explain: Under what head accumulated unrealized gains or losses identifiable in the comparative balance sheets. And the reason for not reporting them in the Income Statement.

6.

To determine

To Explain: The information provided by the changes in the cash flow of these investments in the statement of cash flow.

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Answer 3

Question

Chapter 12, Problem 12.2BYP

1.

To determine

Investment: The act of allocating money to buy a monetary asset, in order to generate wealth in the future is referred to as investment.

Available-for-sale (AFS) securities: These are short-term or long-term investments in debt and equity securities with an intention of holding the investment for some strategic purposes like meeting liquidity needs or manage interest risk.

To Locate: The annual report of a public company that includes the footnote describing the securities available for sale, using the EDGAR in the SEC website.

2.

To determine

To Identify: The caption under which the securities are reported in the comparative balance sheets and to whether they are classified as current or non-current assets.

3.

To determine

To Explain: The method of reporting the realized gains and losses, in the comparative income statement.

4.

To determine

To Explain: The method of reporting the unrealized gains and losses, in the comparative statements and the shareholder’s equity.

5.

To determine

To Explain: Under what head accumulated unrealized gains or losses identifiable in the comparative balance sheets. And the reason for not reporting them in the Income Statement.

6.

To determine

To Explain: The information provided by the changes in the cash flow of these investments in the statement of cash flow.

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Answer 4

Question

Chapter 12, Problem 12.2BYP

1.

To determine

Investment: The act of allocating money to buy a monetary asset, in order to generate wealth in the future is referred to as investment.

Available-for-sale (AFS) securities: These are short-term or long-term investments in debt and equity securities with an intention of holding the investment for some strategic purposes like meeting liquidity needs or manage interest risk.

To Locate: The annual report of a public company that includes the footnote describing the securities available for sale, using the EDGAR in the SEC website.

2.

To determine

To Identify: The caption under which the securities are reported in the comparative balance sheets and to whether they are classified as current or non-current assets.

3.

To determine

To Explain: The method of reporting the realized gains and losses, in the comparative income statement.

4.

To determine

To Explain: The method of reporting the unrealized gains and losses, in the comparative statements and the shareholder’s equity.

5.

To determine

To Explain: Under what head accumulated unrealized gains or losses identifiable in the comparative balance sheets. And the reason for not reporting them in the Income Statement.

6.

To determine

To Explain: The information provided by the changes in the cash flow of these investments in the statement of cash flow.

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Answer 5

Chapter 12, Problem 12.2BYP

1.

To determine

Investment: The act of allocating money to buy a monetary asset, in order to generate wealth in the future is referred to as investment.

Available-for-sale (AFS) securities: These are short-term or long-term investments in debt and equity securities with an intention of holding the investment for some strategic purposes like meeting liquidity needs or manage interest risk.

To Locate: The annual report of a public company that includes the footnote describing the securities available for sale, using the EDGAR in the SEC website.

2.

To determine

To Identify: The caption under which the securities are reported in the comparative balance sheets and to whether they are classified as current or non-current assets.

3.

To determine

To Explain: The method of reporting the realized gains and losses, in the comparative income statement.

4.

To determine

To Explain: The method of reporting the unrealized gains and losses, in the comparative statements and the shareholder’s equity.

5.

To determine

To Explain: Under what head accumulated unrealized gains or losses identifiable in the comparative balance sheets. And the reason for not reporting them in the Income Statement.

6.

To determine

To Explain: The information provided by the changes in the cash flow of these investments in the statement of cash flow.

Answer 6

Chapter 12, Problem 12.2BYP

1.

To determine

Investment: The act of allocating money to buy a monetary asset, in order to generate wealth in the future is referred to as investment.

Available-for-sale (AFS) securities: These are short-term or long-term investments in debt and equity securities with an intention of holding the investment for some strategic purposes like meeting liquidity needs or manage interest risk.

To Locate: The annual report of a public company that includes the footnote describing the securities available for sale, using the EDGAR in the SEC website.

Answer 7

Chapter 12, Problem 12.2BYP

1.

To determine

Investment: The act of allocating money to buy a monetary asset, in order to generate wealth in the future is referred to as investment.

Available-for-sale (AFS) securities: These are short-term or long-term investments in debt and equity securities with an intention of holding the investment for some strategic purposes like meeting liquidity needs or manage interest risk.

To Locate: The annual report of a public company that includes the footnote describing the securities available for sale, using the EDGAR in the SEC website.

Answer 8

2.

To determine

To Identify: The caption under which the securities are reported in the comparative balance sheets and to whether they are classified as current or non-current assets.

Answer 9

2.

To determine

To Identify: The caption under which the securities are reported in the comparative balance sheets and to whether they are classified as current or non-current assets.

Answer 10

3.

To determine

To Explain: The method of reporting the realized gains and losses, in the comparative income statement.

Answer 11

3.

To determine

To Explain: The method of reporting the realized gains and losses, in the comparative income statement.

Answer 12

4.

To determine

To Explain: The method of reporting the unrealized gains and losses, in the comparative statements and the shareholder’s equity.

Answer 13

4.

To determine

To Explain: The method of reporting the unrealized gains and losses, in the comparative statements and the shareholder’s equity.

Answer 14

5.

To determine

To Explain: Under what head accumulated unrealized gains or losses identifiable in the comparative balance sheets. And the reason for not reporting them in the Income Statement.

Answer 15

5.

To determine

To Explain: Under what head accumulated unrealized gains or losses identifiable in the comparative balance sheets. And the reason for not reporting them in the Income Statement.

Answer 16

6.

To determine

To Explain: The information provided by the changes in the cash flow of these investments in the statement of cash flow.

Answer 17

6.

To determine

To Explain: The information provided by the changes in the cash flow of these investments in the statement of cash flow.

Answer 18

Expert Solution & Answer

Answer 19

Expert Solution & Answer

Answer 20

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Answer 21

Ch. 12 - All investments in debt securities are classified...Ch. 12 - When market rates of interest rise after a...Ch. 12 - Does GAAP distinguish between fair values that are...Ch. 12 - When a debt investment is acquired to be held for...Ch. 12 - Prob. 12.5Q Ch. 12 - What is comprehensive income? Its composition...Ch. 12 - Why are holding gains and losses treated...Ch. 12 - Prob. 12.8Q Ch. 12 - Prob. 12.9Q Ch. 12 - Prob. 12.10Q

Solution Summary: The author explains the purpose of the Securities and Exchange Commission (SEC): to monitor the organizations and individuals and the various dealers involved in the securities market.

To Identify: The caption under which the securities are reported in the comparative balance sheets and to whether they are classified as current or non-current assets.

To Explain: The method of reporting the realized gains and losses, in the comparative income statement.

To Explain: The method of reporting the unrealized gains and losses, in the comparative statements and the shareholder’s equity.

To Explain: Under what head accumulated unrealized gains or losses identifiable in the comparative balance sheets. And the reason for not reporting them in the Income Statement.

To Explain: The information provided by the changes in the cash flow of these investments in the statement of cash flow.

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Chapter 12 Solutions