Horngren's Accounting, The Financial Chapters, Student Value Edition (11th Edition)
11th Edition
ISBN: 9780133876352
Author: Tracie L. Miller-Nobles, Brenda L. Mattison, Ella Mae Matsumura
Publisher: PEARSON
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Textbook Question
Chapter 15, Problem 15.1FSC
Financial Statement Case 15−1
Details about a company’s investments appear in a number of places in the annual report. Use Starbucks Corporation’s Fiscal 2013 annual report to answer the following questions. Visit http://www.pearsonhighered.com/Horngren to view a link to Starbucks Corporation’s Fiscal 2013 annual report.
Requirements
- What classifications of debt and/or equity security investments does Starbucks hold?
- Review Notes 4 and 6. Give the breakdown of the short-term and long-term investments Starbucks held at September 29, 2013.
- Review Starbucks’s consolidated statement of cash flows for the year ended September 29, 2013. Identify each item related to the company’s debt and equity security investments, the amount of the item, and the section of the cash flow statement in which the item appears.
- Review Note 1, specifically Short-term and Long-term Investments. How are Starbucks’s available-for-sale investments reported? How are Starbucks’s trading investments reported?
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A partial listing of accounts and ending balances for Carver, Inc., on December 31, 2020, is shown below:
Investments in long-term notes receivable
$40,000
Bonds payable
300,000
Temporary investment in equity securities available for sale
120,000
Premium on bonds payable
26,000
Common stock
180,000
Subscriptions receivable: common stock
120,000
Additional paid-in capital from preferred stock conversion
24,000
Retained earnings
650,000
Preferred stock
300,000
Long-term investment in equity securities available for sale
150,000
Additional paid-in capital on common stock
910,000
Common stock subscribed
20,000
Goodwill
46,000
Donated capital
35,000
Preferred stock subscribed
50,000
Additional paid-in capital on preferred stock
45,000
Following is additional information relative to the above accounts:
The preferred stock is 8% cumulative with par value of…
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 $62 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 $63 million. Millwork has a total of 62 million shares issued.
31
Received semiannual interest of $3.1 million from the Kansas Abstractors bonds.
Nov.
1
Purchased 10% bonds of Holistic…
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…
Chapter 15 Solutions
Horngren's Accounting, The Financial Chapters, Student Value Edition (11th Edition)
Ch. 15 - Prob. 1QCCh. 15 - Which of the following investments is most likely...Ch. 15 - Prob. 3QCCh. 15 - A company invested $45,000 in Yale Co. stock. The...Ch. 15 - Prob. 5QCCh. 15 - Prob. 6QCCh. 15 - Prob. 7QCCh. 15 - Prob. 8QCCh. 15 - Prob. 9QCCh. 15 - Prob. 10QC
Ch. 15 - Prob. 1RQCh. 15 - Prob. 2RQCh. 15 - Prob. 3RQCh. 15 - Prob. 4RQCh. 15 - Prob. 5RQCh. 15 - Prob. 6RQCh. 15 - Prob. 7RQCh. 15 - Prob. 8RQCh. 15 - Prob. 9RQCh. 15 - Prob. 10RQCh. 15 - Prob. 11RQCh. 15 - Prob. 12RQCh. 15 - Prob. 13RQCh. 15 - Prob. 14RQCh. 15 - Prob. S15.1SECh. 15 - Prob. S15.2SECh. 15 - Prob. S15.3SECh. 15 - Prob. S15.4SECh. 15 - Prob. S15.5SECh. 15 - Prob. S15.6SECh. 15 - Prob. S15.7SECh. 15 - Prob. E15.8ECh. 15 - Prob. E15.9ECh. 15 - Prob. E15.10ECh. 15 - Prob. E15.11ECh. 15 - Prob. E15.12ECh. 15 - Prob. E15.13ECh. 15 - Prob. E15.14ECh. 15 - Prob. E15.15ECh. 15 - Prob. E15.16ECh. 15 - Prob. E15.17ECh. 15 - Prob. P15.18APGACh. 15 - Prob. P15.19APGACh. 15 - Prob. P15.20APGACh. 15 - Prob. P15.21BPGBCh. 15 - Prob. P15.22BPGBCh. 15 - Prob. 23CPCh. 15 - Prob. 15.1DCCh. 15 - Prob. 15.1EICh. 15 - Prob. 15.1FCCh. 15 - Financial Statement Case 151 Details about a...
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