FINANCIAL ACCT.:TOOLS...(LL)-W/ACCESS
8th Edition
ISBN: 9781119250913
Author: Kimmel
Publisher: WILEY
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Chapter AH, Problem H.6E
(a)
To determine
Trading securities: It refers to the buying and selling of short-term debt or equity securities to generate profits in the current period.
To Prepare: The
(b)
To determine
To Prepare: The
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At December 31, 2020, the trading securities for Crane, Inc. are as follows.
Security
Cost
Fair Value
A
$17,500
$16,100
B
12,600
13,900
C
23,100
19,100
$53,200
$49,100
(a)
Prepare the adjusting entry at December 31, 2020, to report the securities at fair value. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter 0 for the amounts.)
Date
Account Titles and Explanation
Debit
Credit
Dec. 31
Crypt Inc. carries the following marketable equity financial assets on its books at December 31, 2018 and 2019. All financial assets were purchased during 2018 and there were no beginning balances in any market adjustment accounts.
1.Compute the unrealized gain or loss that will presented in the income statement of 2018.
2. Compute the unrealized gain or loss that will presented in the income statement of 2019
3. Compute the unrealized gain or loss that will presented in the other comprehensive income of 2018
4. Compute the unrealized gain or loss that will presented in the other comprehensive income of 2019.
5.Compute the amount of unrealized gain or loss that will be presented in the Stockholders equity for 2020.
On January 1, Valuation Allowance for Available-for-Sale Investments had a zero balance. On December 31, the cost of the available-for-sale securities was $78,400, and the fair value was $72,330.
Prepare the adjusting entry to record the unrealized gain or loss on available-for-sale investments on December 31. Refer to the Chart of Accounts for exact wording of account titles.
Chapter AH Solutions
FINANCIAL ACCT.:TOOLS...(LL)-W/ACCESS
Ch. AH - Prob. 1QCh. AH - Prob. 2QCh. AH - Prob. 3QCh. AH - Prob. 4QCh. AH - What is the cost of an investment in stock?Ch. AH - Prob. 6QCh. AH - Prob. 7QCh. AH - Prob. 8QCh. AH - Prob. 9QCh. AH - Distinguish between the cost and equity methods of...
Ch. AH - What are consolidated financial statements?Ch. AH - What are the valuation guidelines for trading and...Ch. AH - Prob. 13QCh. AH - Prob. 14QCh. AH - Prob. 15QCh. AH - Prob. 16QCh. AH - Prob. 17QCh. AH - Prob. 18QCh. AH - Prob. H.1BECh. AH - Prob. H.2BECh. AH - Prob. H.3BECh. AH - Prob. H.4BECh. AH - Prob. H.5BECh. AH - Prob. H.6BECh. AH - Prob. H.7BECh. AH - Prob. H.8BECh. AH - Prob. H.1ECh. AH - Prob. H.2ECh. AH - Prob. H.3ECh. AH - Prob. H.4ECh. AH - Prob. H.5ECh. AH - Prob. H.6ECh. AH - Prob. H.7ECh. AH - Prob. H.8ECh. AH - Prob. H.1PCh. AH - Prob. H.2PCh. AH - Prob. H.3PCh. AH - Prob. H.4PCh. AH - Prob. H.5PCh. AH - Prob. H.6P
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