![Connect Access Card for Financial Accounting: Information and Decisions](https://www.bartleby.com/isbn_cover_images/9781259662966/9781259662966_largeCoverImage.gif)
Connect Access Card for Financial Accounting: Information and Decisions
8th Edition
ISBN: 9781259662966
Author: John J Wild
Publisher: McGraw-Hill Education
expand_more
expand_more
format_list_bulleted
Expert Solution & Answer
![Check Mark](/static/check-mark.png)
Want to see the full answer?
Check out a sample textbook solution![Blurred answer](/static/blurred-answer.jpg)
Students have asked these similar questions
Question Content Area
On April 1, 2017 the Reba Company purchased 10%, $800,000 bonds of the Trading Up Company at par plus accrued interest. These bonds were classified as an investment in trading securities. The bonds pay interest on June 30 and December 31 each year. The entry by Reba on April 1, 2017, would include a
debit to Investment in Trading Securities of $820,000
debit to Interest Expense of $20,000
credit to Interest Income of $20,000
credit to Cash of $820,000
Current Attempt in Progress
Oriole Company has these data at December 31, 2022, the end of its first year of operations.
Debt Securities
Trading
Available-for-sale
(a)
Cost
$120,900
(1)
100,400
The available-for-sale securities are held as a long-term investment.
(2)
Fair Value
$125,900
98,400
Prepare the adjusting entries to report: (1) Trading securities at fair value and (2) Available-for-sale securities at fair value. (List all
debit entries before credit entries. 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 O for the amounts.)
No. Account Titles and Explanation
Debit
Credit
22
A dealer in securities has the following for the year 2018:
Sale of securities held for sale in the ordinary course P4,000,000
Cost of securities held for sale in the ordinary course 2,500,000
Supplies expense, net of VAT 300,000
Rent expense, net of VAT 500,000
The Vat payable shall be:
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
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.Similar questions
- Transfer between Categories On December 31, 2018, Leslie Company held an investment in bonds of Kaufmann Company which it categorized as being held to maturity. At that time, the 8%, 100,000 face value bonds had a carrying value of 107,023.56 and were being amortized using the effective interest method based on a market rate of 7%. Interest on these bonds is paid annually each December 31. On December 31, 2019, after recording the interest earned, Leslie decided to reclassify the Kaufmann bonds to its available-for-sale category in anticipation of a major restructuring. At that time, the ending quoted market price for the bonds was 105,000. Required: Prepare the journal entries on December 31, 2019, to record the interest earned and the reclassification.arrow_forwards. The Solstice Corp. bonds have a fair value of $253,630 on December 31, 20Y5. Valuation Allowance for Available-for-Sale Investments had a balance of zero on January 1, 2015. Description Unrealized Gain (Loss) on Available-for-Sale Investments Valuation Allowance for Available-for-Sale Investments Debit Credit 253,630 X Alpha-numeric input fieldarrow_forward10 A dealer in securities has the following for the year 2018: Sale of securities held for sale in the ordinary course P4,000,000 Cost of securities held for sale in the ordinary course 2,500,000 Supplies expense, net of VAT 300,000 Rent expense, net of VAT 500,000 The OUTPUT VAT shall be:arrow_forward
- Fnanciol ACCOunting Chapter 11 Page 32 12. On Juy 1,2020, Ward Company purchased 5,000 of the P1000 face value,o bonds of Jury Company for P4,614,000 to yiekd 10% per annum. The bonds,WN mature on JUly 1,2025, poy interest semiannually on Janvary 1 and JDIY 1. Wara Uses the interest method of amortization and the bonds are appropriarey Tecorded as an investment at amortized cost. The bonds should be reponed i Ward's December31,2020 statermentof financialpositionnat Q. 4,583,300 b,4న44,700 C. 4,675400 d. 4,969,300 106 0000 foce voue of Showarrow_forwardKNG 202 On its December 31, 2020 balance sheet, Calhoun Company appropriately reported a $10,000 composition of Calhoun's portfolio of debt investments held as available-for-sale debt securities. debit balance in its Fair Value Adjustment account. There was no change during 2021 in the The following information pertains to that portfollo: Security X Y N Cost $130,000 100,000 175,000 $405.000 Fair value at 12/31/21 $160,000 90,000 125,000 $375,000 The amount of unrealized loss to appear as a component of comprehensive income for the year ending December 31, 2021 is a. $40,000. b. $30,000. c. $20,000, d. $0. Bella Pool Company sells prefabricated pools that cost $80,000 to customers for $144,000. The sales price includes an installation fee, which is valued at $20,000. The fair value of the pool is $128,000. The installation is considered a separate performance obligation and is expected to take 3 months to complete. The transaction price allocated to the pool and the installation is a.…arrow_forwardaluing Available-for-Sale Securities at Fair ValueOn 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 $198,000, and the fair value was $203,410.Prepare the adjusting entry to record the unrealized gain or loss on available-for-sale investments on December 31.Dec. 31arrow_forward
- QUESTION ONE On January 1, 2022, London CO. made an investment in $40,000 of the 9%, 5-year bonds of Chester Corporation for $37,043, which provides an 11% return. London plans to hold these investments as a held-for-collection and selling investment. Instructions: 1. Prepare the amortization schedule. 2. Prepare London's journal entries for: (a) The purchase of the investment. (b) The receipt of annual interest on December 31 and discount amortization., (c) The year-end fair value adjustment. (Assume a zero balance in the Fair Value Adjustment account.) The bonds have a year-end fair value of $36,500.arrow_forwardExercise C-7 (Algo) Multiyear fair value adjustments to available-for-sale debt securities LO P3 Ticker Services began operations in Year 1 and holds long-term investments in available-for-sale debt securities. The year-end costs and fair values for its portfolio of these investments follow. Portfolio of Available-for-Sale Securities December 31, Year 1 December 31, Year 2 December 31, Year 3 Cost $ 12,600 17,900 21,300 December 31, Year 4 15,300 Prepare journal entries to record each year-end fair value adjustment for these securities. No 1 2 3 4 Date December 31, Year Unrealized loss - Equity Answer is complete but not entirely correct. General Journal Fair value adjustment-AFS December 31, Year Fair value adjustment-AFS Unrealized loss - Equity December 31, Year Fair value adjustment-AFS Unrealized loss - Equity December 31, Year Unrealized loss - Equity Fair Value $ 16,500 Fair value adjustment-AFS 26,100 32,600 20,600 X O x > * X › Debit 3,900 8,200 11,300 5,300 Credit 3,900 8,200…arrow_forwardCurrent Attempt in Progress On July 1, 2021, Swifty Satellites Corporation issued $1,400,000 of 10-year, 9% bonds to yield a market interest rate of 8%. The bonds pay semi-annual interest on July 1 and January 1. Swifty has a December 31 year end and records adjusting entries annually. Swifty received $1,495,137 when issuing the bonds. Click here to view the factor table. (a) Prepare an amortization table through January 1, 2023 (three interest periods) for this bond issue. (Round all amounts to the nearest dollar, e.g. 5,275.) SWIFTY SATELLITES CORPORATION Bond Premium Amortization Semi- annual interest Interest Expense to be Unamortized A 712 28 44 F10 FII 染, 000 F4 F9 F7 FB F5 F1 F2 F3arrow_forward
- ces Q&M Apparel purchased debt securities on January 1 for $150,000 and classified the investments as trading securities. On December 31, the debt securities are valued at $148,000. Record the year-end entry to adjust these securities to their fair value. Note: If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field. View transaction list Journal entry worksheet 1 Record the adjusting trading securities to fair value Note: Enter debits before credits. Date December 31 General Journal Debit Credit Record entry Clear entry View general journal Chearrow_forwardеВook Premium Amortization on Bond Investment and Partial Sale of the Investment Using the Effective Interest Method Instructions Chart of Accounts General Journal Problem 13-1 Content Area Instructions On January 1, 2019, Hyde Corporation purchased bonds with a face value of $300,000 for $308,373.53. The bonds are due June 30, 2022, carry a 13% stated interest rate, and were purchased to yield 12%. Interest is payable semiannually on June 30 and December 31. On March 31, 2020, in contemplation of a major acquisition, the company sold one-half the bonds for $159,500 including accrued interest; the remainder were held until maturity. Required: Prepare the journal entries to record the purchase of the bonds, each interest payment, the partial sale of the investment on March 31, 2020, and the retirement of the bond issue on June 30, 2022. Check My Workarrow_forwardowv21 Online teachin X signment/takeAssignmentMain.do?invoker &takeAssignmentSessionLocator-assignment-take&inprogress-false еBook Calculator Print Item Present Value of Bonds Payable; Premium Moss Co. issued $105,000 of five-year, 12 % bonds, with interest payable semiannually, at a market (effective) interest rate of 11%. Determine the present value of the bonds payable, using the present value tables in Exhibit 5 and Exhibit 7. Note: Round final answer to the nearest dollar. 6,300 oeqpaay Remember, the selling price of a bond is the sum of the present values of: the face amount of the bonds due at the maturity date interest to be paid on the bonds. The market rate of interest is used to compute the present value of both the face amount and the periodic interest. Pre Check imWork de Uparrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
- Cornerstones of Financial AccountingAccountingISBN:9781337690881Author:Jay Rich, Jeff JonesPublisher:Cengage LearningFinancial Accounting: The Impact on Decision Make...AccountingISBN:9781305654174Author:Gary A. Porter, Curtis L. NortonPublisher:Cengage LearningIntermediate Accounting: Reporting And AnalysisAccountingISBN:9781337788281Author:James M. Wahlen, Jefferson P. Jones, Donald PagachPublisher:Cengage Learning
- Financial Reporting, Financial Statement Analysis...FinanceISBN:9781285190907Author:James M. Wahlen, Stephen P. Baginski, Mark BradshawPublisher:Cengage Learning
![Text book image](https://www.bartleby.com/isbn_cover_images/9781337690881/9781337690881_smallCoverImage.gif)
Cornerstones of Financial Accounting
Accounting
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Cengage Learning
![Text book image](https://www.bartleby.com/isbn_cover_images/9781305654174/9781305654174_smallCoverImage.gif)
Financial Accounting: The Impact on Decision Make...
Accounting
ISBN:9781305654174
Author:Gary A. Porter, Curtis L. Norton
Publisher:Cengage Learning
![Text book image](https://www.bartleby.com/isbn_cover_images/9781337788281/9781337788281_smallCoverImage.jpg)
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:Cengage Learning
![Text book image](https://www.bartleby.com/isbn_cover_images/9781285190907/9781285190907_smallCoverImage.gif)
Financial Reporting, Financial Statement Analysis...
Finance
ISBN:9781285190907
Author:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw
Publisher:Cengage Learning
Financial instruments products; Author: fi-compass;https://www.youtube.com/watch?v=gvxozM3TUIg;License: Standard Youtube License