Investment should be classified between current and non-current assets on the basis of motive of investment. Some securities may be purchased for trading purpose or for held-to-maturity, so disclosure of each type of securities will be different. Requirement 1; Classification of stock investment. Main solution: 1. 3600 shares of TJF Inc. will be classified as Marketable Securities – Held as Trading Securities 2. 400 shares of Seanco will be classified as Marketable Securities – Held as Trading Securities

Question

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Answer 1

Question

Chapter 15, Problem P15.21BPGB

To determine

Concept introduction: Investment should be classified between current and non-current assets on the basis of motive of investment. Some securities may be purchased for trading purpose or for held-to-maturity, so disclosure of each type of securities will be different.

Requirement 1;

Classification of stock investment.

Main solution:

1. 3600 shares of TJF Inc. will be classified as Marketable Securities – Held as Trading Securities

2. 400 shares of Seanco will be classified as Marketable Securities – Held as Trading Securities

To determine

Requirement 2;

To prepare: Journal entries for investment transactions.

Main solution:

Date Accounts Title Debit Credit

July2, 2016 Marketable Securities $39600

Cash $39600

Aug. 21, 2016 Cash $360

Dividend Revenue $360

Sep. 16, 201 Cash $54360

Marketable Securities $39600

Realized Gain on Trading Securities $14760

Oct. 8, 2016 Marketable Securities $5200

Cash $5200

Dec.31, 2016 Unrealized Holding Loss on Trading Securities $2800

Marketable Securities $2800

To determine

Requirement 3;

To prepare: Preparation of T account and disclosure in the balance sheet at December 31, 2016.

Main solution:

Marketable Securities (Investment made in TJF Inc.)

Debit Credit

July 2, 2016 $39600 Sept. 16, 2016 $39600

$37400 $37400

Marketable Securities (Investment made in Seanco Inc.)

Debit Credit

Oct. 8, 2016 $5200 Dec. 31, 2016 $2800

Ending balance $2400

Way Corporation

Balance Sheet (Partial)

As at December 31, 2016

Assets

Current asset;

Marketable Securities – Held as trading securities $2400

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Answer 2

Question

Chapter 15, Problem P15.21BPGB

To determine

Concept introduction: Investment should be classified between current and non-current assets on the basis of motive of investment. Some securities may be purchased for trading purpose or for held-to-maturity, so disclosure of each type of securities will be different.

Requirement 1;

Classification of stock investment.

Main solution:

1. 3600 shares of TJF Inc. will be classified as Marketable Securities – Held as Trading Securities

2. 400 shares of Seanco will be classified as Marketable Securities – Held as Trading Securities

To determine

Requirement 2;

To prepare: Journal entries for investment transactions.

Main solution:

Date Accounts Title Debit Credit

July2, 2016 Marketable Securities $39600

Cash $39600

Aug. 21, 2016 Cash $360

Dividend Revenue $360

Sep. 16, 201 Cash $54360

Marketable Securities $39600

Realized Gain on Trading Securities $14760

Oct. 8, 2016 Marketable Securities $5200

Cash $5200

Dec.31, 2016 Unrealized Holding Loss on Trading Securities $2800

Marketable Securities $2800

To determine

Requirement 3;

To prepare: Preparation of T account and disclosure in the balance sheet at December 31, 2016.

Main solution:

Marketable Securities (Investment made in TJF Inc.)

Debit Credit

July 2, 2016 $39600 Sept. 16, 2016 $39600

$37400 $37400

Marketable Securities (Investment made in Seanco Inc.)

Debit Credit

Oct. 8, 2016 $5200 Dec. 31, 2016 $2800

Ending balance $2400

Way Corporation

Balance Sheet (Partial)

As at December 31, 2016

Assets

Current asset;

Marketable Securities – Held as trading securities $2400

Expert Solution & Answer

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Answer 3

Question

Chapter 15, Problem P15.21BPGB

To determine

Concept introduction: Investment should be classified between current and non-current assets on the basis of motive of investment. Some securities may be purchased for trading purpose or for held-to-maturity, so disclosure of each type of securities will be different.

Requirement 1;

Classification of stock investment.

Main solution:

1. 3600 shares of TJF Inc. will be classified as Marketable Securities – Held as Trading Securities

2. 400 shares of Seanco will be classified as Marketable Securities – Held as Trading Securities

To determine

Requirement 2;

To prepare: Journal entries for investment transactions.

Main solution:

Date Accounts Title Debit Credit

July2, 2016 Marketable Securities $39600

Cash $39600

Aug. 21, 2016 Cash $360

Dividend Revenue $360

Sep. 16, 201 Cash $54360

Marketable Securities $39600

Realized Gain on Trading Securities $14760

Oct. 8, 2016 Marketable Securities $5200

Cash $5200

Dec.31, 2016 Unrealized Holding Loss on Trading Securities $2800

Marketable Securities $2800

To determine

Requirement 3;

To prepare: Preparation of T account and disclosure in the balance sheet at December 31, 2016.

Main solution:

Marketable Securities (Investment made in TJF Inc.)

Debit Credit

July 2, 2016 $39600 Sept. 16, 2016 $39600

$37400 $37400

Marketable Securities (Investment made in Seanco Inc.)

Debit Credit

Oct. 8, 2016 $5200 Dec. 31, 2016 $2800

Ending balance $2400

Way Corporation

Balance Sheet (Partial)

As at December 31, 2016

Assets

Current asset;

Marketable Securities – Held as trading securities $2400

Expert Solution & Answer

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Answer 4

Question

Chapter 15, Problem P15.21BPGB

To determine

Concept introduction: Investment should be classified between current and non-current assets on the basis of motive of investment. Some securities may be purchased for trading purpose or for held-to-maturity, so disclosure of each type of securities will be different.

Requirement 1;

Classification of stock investment.

Main solution:

1. 3600 shares of TJF Inc. will be classified as Marketable Securities – Held as Trading Securities

2. 400 shares of Seanco will be classified as Marketable Securities – Held as Trading Securities

To determine

Requirement 2;

To prepare: Journal entries for investment transactions.

Main solution:

Date Accounts Title Debit Credit

July2, 2016 Marketable Securities $39600

Cash $39600

Aug. 21, 2016 Cash $360

Dividend Revenue $360

Sep. 16, 201 Cash $54360

Marketable Securities $39600

Realized Gain on Trading Securities $14760

Oct. 8, 2016 Marketable Securities $5200

Cash $5200

Dec.31, 2016 Unrealized Holding Loss on Trading Securities $2800

Marketable Securities $2800

To determine

Requirement 3;

To prepare: Preparation of T account and disclosure in the balance sheet at December 31, 2016.

Main solution:

Marketable Securities (Investment made in TJF Inc.)

Debit Credit

July 2, 2016 $39600 Sept. 16, 2016 $39600

$37400 $37400

Marketable Securities (Investment made in Seanco Inc.)

Debit Credit

Oct. 8, 2016 $5200 Dec. 31, 2016 $2800

Ending balance $2400

Way Corporation

Balance Sheet (Partial)

As at December 31, 2016

Assets

Current asset;

Marketable Securities – Held as trading securities $2400

Expert Solution & Answer

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Answer 5

Chapter 15, Problem P15.21BPGB

To determine

Concept introduction: Investment should be classified between current and non-current assets on the basis of motive of investment. Some securities may be purchased for trading purpose or for held-to-maturity, so disclosure of each type of securities will be different.

Requirement 1;

Classification of stock investment.

Main solution:

1. 3600 shares of TJF Inc. will be classified as Marketable Securities – Held as Trading Securities

2. 400 shares of Seanco will be classified as Marketable Securities – Held as Trading Securities

To determine

Requirement 2;

To prepare: Journal entries for investment transactions.

Main solution:

Date Accounts Title Debit Credit

July2, 2016 Marketable Securities $39600

Cash $39600

Aug. 21, 2016 Cash $360

Dividend Revenue $360

Sep. 16, 201 Cash $54360

Marketable Securities $39600

Realized Gain on Trading Securities $14760

Oct. 8, 2016 Marketable Securities $5200

Cash $5200

Dec.31, 2016 Unrealized Holding Loss on Trading Securities $2800

Marketable Securities $2800

To determine

Requirement 3;

To prepare: Preparation of T account and disclosure in the balance sheet at December 31, 2016.

Main solution:

Marketable Securities (Investment made in TJF Inc.)

Debit Credit

July 2, 2016 $39600 Sept. 16, 2016 $39600

$37400 $37400

Marketable Securities (Investment made in Seanco Inc.)

Debit Credit

Oct. 8, 2016 $5200 Dec. 31, 2016 $2800

Ending balance $2400

Way Corporation

Balance Sheet (Partial)

As at December 31, 2016

Assets

Current asset;

Marketable Securities – Held as trading securities $2400

Answer 6

Chapter 15, Problem P15.21BPGB

To determine

Concept introduction: Investment should be classified between current and non-current assets on the basis of motive of investment. Some securities may be purchased for trading purpose or for held-to-maturity, so disclosure of each type of securities will be different.

Requirement 1;

Classification of stock investment.

Main solution:

1. 3600 shares of TJF Inc. will be classified as Marketable Securities – Held as Trading Securities

2. 400 shares of Seanco will be classified as Marketable Securities – Held as Trading Securities

Answer 7

Chapter 15, Problem P15.21BPGB

To determine

Concept introduction: Investment should be classified between current and non-current assets on the basis of motive of investment. Some securities may be purchased for trading purpose or for held-to-maturity, so disclosure of each type of securities will be different.

Requirement 1;

Classification of stock investment.

Main solution:

1. 3600 shares of TJF Inc. will be classified as Marketable Securities – Held as Trading Securities

2. 400 shares of Seanco will be classified as Marketable Securities – Held as Trading Securities

Answer 8

To determine

Requirement 2;

To prepare: Journal entries for investment transactions.

Main solution:

Date Accounts Title Debit Credit

July2, 2016 Marketable Securities $39600

Cash $39600

Aug. 21, 2016 Cash $360

Dividend Revenue $360

Sep. 16, 201 Cash $54360

Marketable Securities $39600

Realized Gain on Trading Securities $14760

Oct. 8, 2016 Marketable Securities $5200

Cash $5200

Dec.31, 2016 Unrealized Holding Loss on Trading Securities $2800

Marketable Securities $2800

Answer 9

To determine

Requirement 2;

To prepare: Journal entries for investment transactions.

Main solution:

Date Accounts Title Debit Credit

July2, 2016 Marketable Securities $39600

Cash $39600

Aug. 21, 2016 Cash $360

Dividend Revenue $360

Sep. 16, 201 Cash $54360

Marketable Securities $39600

Realized Gain on Trading Securities $14760

Oct. 8, 2016 Marketable Securities $5200

Cash $5200

Dec.31, 2016 Unrealized Holding Loss on Trading Securities $2800

Marketable Securities $2800

Answer 10

To determine

Requirement 3;

To prepare: Preparation of T account and disclosure in the balance sheet at December 31, 2016.

Main solution:

Marketable Securities (Investment made in TJF Inc.)

Debit Credit

July 2, 2016 $39600 Sept. 16, 2016 $39600

$37400 $37400

Marketable Securities (Investment made in Seanco Inc.)

Debit Credit

Oct. 8, 2016 $5200 Dec. 31, 2016 $2800

Ending balance $2400

Way Corporation

Balance Sheet (Partial)

As at December 31, 2016

Assets

Current asset;

Marketable Securities – Held as trading securities $2400

Answer 11

To determine

Requirement 3;

To prepare: Preparation of T account and disclosure in the balance sheet at December 31, 2016.

Main solution:

Marketable Securities (Investment made in TJF Inc.)

Debit Credit

July 2, 2016 $39600 Sept. 16, 2016 $39600

$37400 $37400

Marketable Securities (Investment made in Seanco Inc.)

Debit Credit

Oct. 8, 2016 $5200 Dec. 31, 2016 $2800

Ending balance $2400

Way Corporation

Balance Sheet (Partial)

As at December 31, 2016

Assets

Current asset;

Marketable Securities – Held as trading securities $2400

Answer 12

Expert Solution & Answer

Answer 13

Expert Solution & Answer

Answer 14

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Answer 15

Ch. 15 - Prob. 1QC Ch. 15 - Which of the following investments is most likely...Ch. 15 - Prob. 3QC Ch. 15 - A company invested $45,000 in Yale Co. stock. The...Ch. 15 - Prob. 5QC Ch. 15 - Prob. 6QC Ch. 15 - Prob. 7QC Ch. 15 - Prob. 8QC Ch. 15 - Prob. 9QC Ch. 15 - Prob. 10QC

Date	Accounts Title	Debit	Credit
July2, 2016	Marketable Securities	$39600
	Cash		$39600

Aug. 21, 2016	Cash	$360
	Dividend Revenue		$360

Sep. 16, 201	Cash	$54360
	Marketable Securities		$39600
	Realized Gain on Trading Securities		$14760

Oct. 8, 2016	Marketable Securities	$5200
	Cash		$5200

Dec.31, 2016	Unrealized Holding Loss on Trading Securities	$2800
	Marketable Securities		$2800

Marketable Securities (Investment made in TJF Inc.)
Debit		Credit
July 2, 2016	$39600	Sept. 16, 2016	$39600

	$37400		$37400

Way Corporation
Balance Sheet (Partial)
As at December 31, 2016
Assets
Current asset;
Marketable Securities – Held as trading securities	$2400

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Chapter 15 Solutions