EBK HORNGREN'S ACCOUNTING
11th Edition
ISBN: 9780133867411
Author: Matsumura
Publisher: YUZU
expand_more
expand_more
format_list_bulleted
Videos
Question
Chapter 15, Problem P15.22BPGB
To determine
Concept introduction: Available for sale (AFS) securities are those securities which are not classified as trading or held-to-maturity securities. In other words we can say that those securities do not fall under trading or held-to-maturity securities categories, are known as available for sale securities.
Requirement 1;
To prepare:
To determine
Requirement 2;
To prepare: Preparation of T accounts.
Main solution:
| Investment in Larsen’s Stock | |||
|---|---|---|---|
| Debit | Credit | ||
| Beginning balance | $800000 | Cash (dividend revenue) | $110000 |
| Equity in Earnings of Parson | $38500 | ||
| Ending balance | $728500 | ||
| $838500 | $838500 | ||
| Long-term Investment-Available for Sale Securities | |||
|---|---|---|---|
| Debit | Credit | ||
| Cash | $42000 | ||
| Unrealized holding gain on available for sale securities | $18000 | Ending balance | $60000 |
| $60000 | $60000 | ||
| Dividend Revenue | |||
|---|---|---|---|
| Debit | Credit | ||
| Income Statement | $3180 | Cash | $3180 |
| $3180 | $3180 | ||
| Equity in Earnings of Larsen | |||
|---|---|---|---|
| Debit | Credit | ||
| Investment in larsen’s Stock | $38500 | ||
| Ending balance | $38500 | ||
| $38500 | $38500 | ||
| Unrealized Holding gain on Available for Sale Securities | |||
|---|---|---|---|
| Debit | Credit | ||
| Other Comprehensive Income-Accumulated Other Comprehensive Income | $18000 | Long-term Investment – Available for Sale Securities | $18000 |
| $18000 | $18000 | ||
To determine
Requirement 3;
To prepare: Partial balance sheet as at December 31, 2016.
Main solution:
| Water Source Co. | |
|---|---|
| Balance Sheet (Partial) | |
| As on December 31, 2016 | |
| Assets | |
| Non-Current assets; | |
| Long-term Investment – Available for Sale Securities | $60000 |
| Investment in Larsen’s Stock | $728500 |
| Liabilities and |
|
| Other Comprehensive Income-Accumulated Other Comprehensive Income | $18000 |
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Chapter 15 Solutions
EBK HORNGREN'S ACCOUNTING
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...
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
AccountingAccountingISBN:9781337272094Author:WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.Publisher:Cengage Learning,
Accounting Information SystemsAccountingISBN:9781337619202Author:Hall, James A.Publisher:Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis...AccountingISBN:9780134475585Author:Srikant M. Datar, Madhav V. RajanPublisher:PEARSON
Intermediate AccountingAccountingISBN:9781259722660Author:J. David Spiceland, Mark W. Nelson, Wayne M ThomasPublisher:McGraw-Hill Education
Financial and Managerial AccountingAccountingISBN:9781259726705Author:John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting PrinciplesPublisher:McGraw-Hill Education
Accounting
Accounting
ISBN:9781337272094
Author:WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:Cengage Learning,
Accounting Information Systems
Accounting
ISBN:9781337619202
Author:Hall, James A.
Publisher:Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis...
Accounting
ISBN:9780134475585
Author:Srikant M. Datar, Madhav V. Rajan
Publisher:PEARSON
Intermediate Accounting
Accounting
ISBN:9781259722660
Author:J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:9781259726705
Author:John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:McGraw-Hill Education
Financial instruments products; Author: fi-compass;https://www.youtube.com/watch?v=gvxozM3TUIg;License: Standard Youtube License