menu
bartleby
search
close search
Hit Return to see all results
Subscribe
Sign in

Business
AccountingIntermediate Accounting: Reporting And Analysis3rd Edition

close solutoin list
Chapter 13, Problem 6P
BuyFindarrow_forward

Intermediate Accounting: Reporting...

3rd Edition
James M. Wahlen + 2 others
ISBN: 9781337788281

Solutions

Chapter
Section
Problem 1GI
Problem 2GI
Problem 3GI
Problem 4GI
Problem 5GI
Problem 6GI
Problem 7GI
Problem 8GI
Problem 9GI
Problem 10GI
Problem 11GI
Problem 12GI
Problem 13GI
Problem 14GI
Problem 15GI
Problem 16GI
Problem 17GI
Problem 18GI
Problem 19GI
Problem 20GI
Problem 21GI
Problem 22GI
Problem 23GI
Problem 24GI
Problem 25GI
Problem 26GI
Problem 27GI
Problem 28GI
Problem 29GI
Problem 30GI
Problem 31GI
Problem 32GI
Problem 33GI
Problem 34GI
Problem 1MC
Problem 2MC
Problem 3MC
Problem 4MC
Problem 5MC
Problem 6MC
Problem 7MC
Problem 8MC
Problem 9MC
Problem 10MC
Problem 1RE
Problem 2RE
Problem 3RE
Problem 4RE
Problem 5RE
Problem 6RE
Problem 7RE
Problem 8RE
Problem 9RE
Problem 10RE
Problem 11RE
Problem 12RE
Problem 13RE
Problem 14RE
Problem 15RE
Problem 16RE
Problem 1E
Problem 2E
Problem 3E
Problem 4E
Problem 5E
Problem 6E
Problem 7E
Problem 8E
Problem 9E
Problem 10E
Problem 11E
Problem 12E
Problem 13E
Problem 14E
Problem 15E
Problem 16E
Problem 17E
Problem 18E
Problem 19E
Problem 20E
Problem 21E
Problem 22E
Problem 23E
Problem 24E
Problem 25E
Problem 26E
Problem 27E
Problem 1P
Problem 2P
Problem 3P
Problem 4P
Problem 5P
Problem 6P
Problem 7P
Problem 8P
Problem 9P
Problem 10P
Problem 11P
Problem 12P
Problem 13P
Problem 14P
Problem 15P
Problem 16P
Problem 17P
Problem 18P
Problem 19P
Problem 20P
Problem 21P
Problem 22P
Problem 23P
Problem 24P
Problem 25P
Problem 26P
Problem 1C
Problem 2C
Problem 3C
Problem 4C
Problem 5C
Problem 6C
Problem 7C
Problem 8C
BuyFindarrow_forward

Intermediate Accounting: Reporting...

3rd Edition
James M. Wahlen + 2 others
ISBN: 9781337788281
Textbook Problem
24 views

Trading Securities Akers Company invests its excess cash in marketable securities. At the beginning of 2019, it had the following portfolio of investments in trading debt securities:

Chapter 13, Problem 6P, Trading Securities Akers Company invests its excess cash in marketable securities. At the beginning , example 1

During 2019, the following transactions occurred:

Chapter 13, Problem 6P, Trading Securities Akers Company invests its excess cash in marketable securities. At the beginning , example 2

The December 31 closing market prices were as follows: Ivan Company bonds, $9,000; and Hill Company 8% bonds $20,100. Akers uses the straight-line method to amortize any discounts or premiums.

Required:

  1. 1. Prepare journal entries to record the preceding information.
  2. 2. Show what is reported on Akers’s 2019 income statement.
  3. 3. Assuming the investment in Ivan Company bonds is considered to be a current asset and the investment in Hill Company bonds is considered to be a noncurrent asset, show how all the items are reported on Akers’s December 31, 2019, balance sheet.

1.

To determine

Record the journal entries in the books of Company A.

Explanation

Investment: It refers to the process of using the currently held excess cash to earn profitable returns in future. The investments can be made in equity securities such as shares or debt securities such as bonds.

Trading securities: These are the securities which are purchased to earn the profits due to changes in their market prices.

Record the journal entries in the books of Company A.

DateAccount Title and Explanation

Debit

($)

Credit ($)
March 31Investment in trading securities20,000
 Interest income ($20,000×0.08×312)400 
     Cash 20,400
 (To record the investment in trading securities)  
    
March 31Interest receivable ($40,000×0.06×312)600 
     Investment in trading securities     ($3,2005 years×312) 160
     Interest income  
 (To record the interest receivable)
    
March 31Cash ($42,000+$6,000)1,200 
     Investment in trading securities     ($41,600−$160)41,640
     Interest receivable 600
     Gain on sale of trading     securities 360
 (To record the gain on sale of trading securities)  
    
June 30Cash 800 
     Interest income     ($20,000×0

2.

To determine

Identify the amount that is reported in Company A’s income statement.

3.

To determine

Identify the manner in which the items are reported in Company A’s balance sheet.

Still sussing out bartleby?

Check out a sample textbook solution.

See a sample solution
arrow_back
Chapter 13,
Problem 5P
Chapter 13,
Problem 7P
arrow_forward

The Solution to Your Study Problems

Bartleby provides explanations to thousands of textbook problems written by our experts, many with advanced degrees!

Get Started

Chapter 13 Solutions

Show all chapter solutions add
Ch-13 P-1GICh-13 P-2GICh-13 P-3GICh-13 P-4GICh-13 P-5GICh-13 P-6GICh-13 P-7GICh-13 P-8GICh-13 P-9GICh-13 P-10GI
Ch-13 P-11GICh-13 P-12GICh-13 P-13GICh-13 P-14GICh-13 P-15GICh-13 P-16GICh-13 P-17GICh-13 P-18GICh-13 P-19GICh-13 P-20GICh-13 P-21GICh-13 P-22GICh-13 P-23GICh-13 P-24GICh-13 P-25GICh-13 P-26GICh-13 P-27GICh-13 P-28GICh-13 P-29GICh-13 P-30GICh-13 P-31GICh-13 P-32GICh-13 P-33GICh-13 P-34GICh-13 P-1MCCh-13 P-2MCCh-13 P-3MCCh-13 P-4MCCh-13 P-5MCCh-13 P-6MCCh-13 P-7MCCh-13 P-8MCCh-13 P-9MCCh-13 P-10MCCh-13 P-1RECh-13 P-2RECh-13 P-3RECh-13 P-4RECh-13 P-5RECh-13 P-6RECh-13 P-7RECh-13 P-8RECh-13 P-9RECh-13 P-10RECh-13 P-11RECh-13 P-12RECh-13 P-13RECh-13 P-14RECh-13 P-15RECh-13 P-16RECh-13 P-1ECh-13 P-2ECh-13 P-3ECh-13 P-4ECh-13 P-5ECh-13 P-6ECh-13 P-7ECh-13 P-8ECh-13 P-9ECh-13 P-10ECh-13 P-11ECh-13 P-12ECh-13 P-13ECh-13 P-14ECh-13 P-15ECh-13 P-16ECh-13 P-17ECh-13 P-18ECh-13 P-19ECh-13 P-20ECh-13 P-21ECh-13 P-22ECh-13 P-23ECh-13 P-24ECh-13 P-25ECh-13 P-26ECh-13 P-27ECh-13 P-1PCh-13 P-2PCh-13 P-3PCh-13 P-4PCh-13 P-5PCh-13 P-6PCh-13 P-7PCh-13 P-8PCh-13 P-9PCh-13 P-10PCh-13 P-11PCh-13 P-12PCh-13 P-13PCh-13 P-14PCh-13 P-15PCh-13 P-16PCh-13 P-17PCh-13 P-18PCh-13 P-19PCh-13 P-20PCh-13 P-21PCh-13 P-22PCh-13 P-23PCh-13 P-24PCh-13 P-25PCh-13 P-26PCh-13 P-1CCh-13 P-2CCh-13 P-3CCh-13 P-4CCh-13 P-5CCh-13 P-6CCh-13 P-7CCh-13 P-8C

Additional Business Solutions

Find more solutions based on key concepts

Show solutions add

REPORT CATEGORIZATION Classify the following reports as being either scheduled or on-demand reports. Cash disbu...

Accounting Information Systems

Use the following information for Multiple-Choice Questions 2-13 through 2-18: Last year, Barnard Company incur...

Managerial Accounting: The Cornerstone of Business Decision-Making

Assume that when a purchase of supplies of 2,650 for cash was recorded, both the debit and the credit were jour...

Financial Accounting

What is the primary purpose of a stock split?

Corporate Financial Accounting

Explain the purpose of a chart of accounts.

College Accounting, Chapters 1-27

Two projects have an identical net present value 9,000. Are both projects equal in desirability?

Financial & Managerial Accounting

Factory overhead cost variance report Feeling Better Medical Inc., a manufacturer of disposable medical supplie...

Financial And Managerial Accounting

Entries for issuing bonds Thomson Co. products and distributes semiconductors for use by computer manufacturers...

Accounting

Why do government budget deficits grow during recessions?

Economics:

Discuss the differences between statistics as numerical facts and statistics as a discipline or field of study.

STATISTICS F/BUSINESS+ECONOMICS-TEXT

A German worker takes 400 hours to produce a car and 2 hours to produce a case of wine. A French worker takes 6...

Essentials of Economics (MindTap Course List)

Contrast the focus of marketing activities during the five eras of marketing history.

Contemporary Marketing

Explain the concept of ethical behavior

MKTG 12:STUDENT ED.-TEXT

Governments may intervene in a market economy in order to a. protect property rights. b. correct a market failu...

Principles of Economics (MindTap Course List)

What might shift the aggregate-supply curve to the left? Use the model of aggregate demand and aggregate supply...

Brief Principles of Macroeconomics (MindTap Course List)

Persuasive Request: How to Ask for a Letter of Recommendation. As a student, you will need letters of recommend...

Essentials of Business Communication (MindTap Course List)

Identify the skills required to be a forensic accountant. How does the knowledge of technology and AIS help ena...

Accounting Information Systems

A point inside the production possibilities frontier is a. efficient but not feasible. b. feasible but not effi...

Principles of Microeconomics (MindTap Course List)

What determines whether or not a resource is scarce? Why is the concept of scarcity important to the definition...

ECON MACRO

Once again we can use the CAPM to estimate MMMs cost of equity. From the Internet, you can find a number of dif...

Fundamentals of Financial Management, Concise Edition (MindTap Course List)

CROSS RATES Suppose the exchange rate between the U.S. dollar and the Swedish krona was 7.97 krona = 1, and the...

Fundamentals of Financial Management (MindTap Course List)

In terms of focus, magnitude of change, and number, characterize the production processes used by a local pizza...

Foundations of Business (MindTap Course List)

(The Short-Run Firm Supply Curve) Use the following data to answer the questions below: Q VC MC AVC 1 $10 ____ ...

ECON: MICRO4 (New, Engaging Titles from 4LTR Press)

List and describe the three functions of money.

Principles of Macroeconomics (MindTap Course List)

(Tax Rates) Suppose taxes are related to income as follows: Income Taxes $1,000 $200 $2,000 $350 $3,000 $450 a....

ECON MICRO

Can you think of potential drawbacks to retailers using labor-waste elimination systems based on scientific man...

Management, Loose-Leaf Version

Factory overhead volume variance Dvorak Company produced 1,000 units of product that required 3 standard hours ...

Accounting (Text Only)

What is the purpose of adjusting entries?

College Accounting (Book Only): A Career Approach

Why are adjusting entries needed at the end of an accounting period?

Financial Accounting

Straight-line depreciation Equipment acquired at the beginning of the year at a cost of 340,000 has an estimate...

Financial & Managerial Accounting

A seven-year medical research study reported that women whose mothers took the drug DES during pregnancy were t...

Statistics for Business & Economics, Revised (MindTap Course List)

What would happen to autonomous consumption if household debt fell and the interest rate rose over the same tim...

Exploring Economics

Define each of the following loan terms and explain how they are related to one another: the prime rate, the ra...

Fundamentals of Financial Management, Concise Edition (with Thomson ONE - Business School Edition, 1 term (6 months) Printed Access Card) (MindTap Course List)

Grande Company has the following balances in its general ledger as of March 1 of this year: a. FICA Taxes Payab...

College Accounting (Book Only): A Career Approach

Name and describe the calculation of two measures that provide an indication of a businesss ability to pay curr...

College Accounting, Chapters 1-27 (New in Accounting from Heintz and Parry)

How would each of the following scenarios affect a firms cost of debt, rd( 1 T); its cost of equity, rs; and i...

Fundamentals of Financial Management (MindTap Course List)

What is the difference between a specification and a performance measure?

Pkg Acc Infor Systems MS VISIO CD

The government purchases component of GDP does not include spending on transfer payments such as Social Securit...

Principles of Macroeconomics (MindTap Course List)

Net income and stockholders equity for four businesses Four different corporations, Amber, Blue, Coral, and Daf...

Corporate Financial Accounting

Give an example of a qualitative factor that shouldbe considered in a capital investment analysis related to ac...

Survey of Accounting (Accounting I)

Jody Baush is a salaried employee who normally works a 35-hour week and is paid a weekly salary of 735.00. The ...

PAYROLL ACCT.,2019 ED.(LL)-TEXT

Identify each of the following as either an adverse selection problem or a moral hazard problem: a. Poor driver...

Macroeconomics

Prove that price elasticity of demand is not the same as the slope of a demand curve.

Microeconomics

In an equation-of-exchange framework, the price level is dependent upon the money supply, velocity, and Real GD...

Economics (MindTap Course List)

For the aggregate planning example (Example 4.3 in Chapter 4), is it likely that the cost per worker of changin...

Practical Management Science

Discuss several reasons why managers often neglect the true costs of holding physical inventory. What has happe...

Purchasing and Supply Chain Management

In each of the sentences below, choose the correct verb in parentheses. Only one of the free smartphone applica...

Bcom

The decreasing portion of a firms long-run average cost curve is attributable to a. increasing marginal cost. b...

Economics For Today

Refer to Exercise 10.7 for data. At the end of Year 2, the manager of the Houseware Division is concerned about...

Cornerstones of Cost Management (Cornerstones Series)

bartleby
© bartleby 2019