Connect Access Card for Financial Accounting: Information and Decisions
8th Edition
ISBN: 9781259662966
Author: John J Wild
Publisher: McGraw-Hill Education
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Classifying Investments in Securities
Match each security listed below with its usual classification: (1) trading securities, (2) available-for-sale securities, (3) equity method securities, (4) held-to-maturity securities, or (5) equity securities measured at FV-NI.
a. Abbot common stock, no-par; acquired to use temporarily idle cash with intent to sell next month.
b. 30% interest in Packaging Inc.; acquired to drive costs down through vertical integration.
c. Mack stock held in trading account.
d. Hasten Inc.'s 10-year bonds acquired. Hasten intends to hold to maturity, but may need to sell the bonds earlier for cash.
e. Staufer common stock, par $5; acquired to gain a significant influence, but not control.
f. Frazer bonds, 9% mature at the end of 10 years; acquired with the intent and ability to hold for 10 years.
g. Foreign Corp. common stock; a 30% interest acquired, but difficulties encountered in an attempt to obtain representation on the Foreign…
Assessing Financial Statement Effects of Marketable Equity Securities
Use the financial statement effects template to record the accounts and amounts for the following four transactions involving investments in marketable equity securities.
a. Purchased 14,000 common shares of Heller Co. at $16 cash per share.
b. Received a cash dividend of $1.25 per common share from Heller.
c. Year-end market price of Heller common stock is $17.50 per share.
d. Sold all 14,000 common shares of Heller for $220,920 cash.
Note: For each account category, indicate the appropriate account name. Enter "N/A" for any account category that is not used for a given transaction.
Note: Indicate a decrease in an account category by including a negative sign with the amount.
tion
N/A
N/A
N/A
N/A
Cash
Asset
(224,000)
17,500
+
220,920
* N/A
◆ * N/A
0
N/A
* N/A
Noncash Assets
224,000 =
=
21,000
* N/A
0✓ =
♦
=
N/A
* N/A
(171,500) * =
* N/A
Balance Sheet
Liabilities
0
0✔
0
0
4
+
>
N/A
N/A
N/A
N/A
Contrib.
Capital
0
0✔
0…
Assessing Financial Statement Effects of Trading and Available-for-Sale Securities Use the financial statement effects template to record the following four transactions involving investments in marketable securities.
Purchased 6,000 common shares of Liu, Inc., at $12.25 cash per share.
Received a cash dividend of $1.50 per common share from Liu.
Year-end market price of Liu common stock is $11.25 per share.
Sold all 6,000 common shares of Liu for $66,300.
Use negative signs with answers, when appropriate.
Balance Sheet
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Contributed
Capital
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Earned
Capital
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(2)
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(3)
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Income Statement
Revenue
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Chapter C Solutions
Connect Access Card for Financial Accounting: Information and Decisions
Ch. C - Under what two conditions should investments be...Ch. C - Prob. 2DQCh. C - Prob. 3DQCh. C - Identify the three classes of debt investments and...Ch. C - Prob. 5DQCh. C - Prob. 6DQCh. C - Prob. 7DQCh. C - Prob. 8DQCh. C - Prob. 9DQCh. C - Prob. 10DQ
Ch. C - Prob. 11DQCh. C - Prob. 12DQCh. C - Prob. 13DQCh. C - Prob. 14DQCh. C - Prob. 15DQCh. C - Prob. 16DQCh. C - Prob. 17DQCh. C - Which of the following statements a through g are...Ch. C - Prob. 2QSCh. C - Prob. 3QSCh. C - Prob. 4QSCh. C - Prob. 5QSCh. C - Prob. 6QSCh. C - Prob. 7QSCh. C - Prob. 8QSCh. C - Prob. 9QSCh. C - Prob. 10QSCh. C - Prob. 11QSCh. C - Prob. 12QSCh. C - Prob. 13QSCh. C - Prob. 14QSCh. C - Prob. 15QSCh. C - Prob. 16QSCh. C - Prob. 17QSCh. C - Prob. 1ECh. C - Prob. 2ECh. C - Prob. 3ECh. C - Prob. 4ECh. C - Prob. 5ECh. C - Prob. 6ECh. C - Prob. 7ECh. C - Prob. 8ECh. C - Prob. 9ECh. C - Prob. 10ECh. C - Prob. 12ECh. C - Prob. 13ECh. C - Prob. 14ECh. C - Prob. 15ECh. C - Prob. 16ECh. C - Prob. 2PSACh. C - Prob. 6PSACh. C - Prob. 2PSBCh. C - Prob. 3PSBCh. C - Prob. 5PSBCh. C - Prob. 6PSBCh. C - Prob. CSPCh. C - Prob. 4BTNCh. C - Prob. 9BTN
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