FINANCIAL ACCT-CONNECT
8th Edition
ISBN: 9781266627903
Author: Wild
Publisher: INTER MCG
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FEE
(e) At December 31, 2017, the trading securities for Storrer, Inc. are as follows.
Cost
Tk. 17,500 Tk.16,000
12,500
23,000
Tk. 53,000 Tk. 51,000
Security
Fair Value
в
14,000
21,000
Instructions
(a) Prepare the adjusting entry at December 31, 2017, to report the securities at fair value.
(b) Show the balance sheet and income statement presentation at December 31, 2017, after
adjustment to fair value.
Available-for-Sale Securities at Fair Value
On January 1, 20Y7, Valuation Allowance for Available-for-Sale Investments had a zero balance. On December 31, 20Y7, the cost of the available-for-sale
securities was $189,000, and the fair value was $194,170.
Journalize the adjusting entry to record the unrealized gain or loss on available-for-sale investments on December 31. If an amount box does not require an
entry, leave it blank.
Dec. 31
Prepare adjusting entry to record
fair value, and indicate statement
presentation.
E16.11 (LO 3), AP Financial Statement Writing At December 31, 2022, available-for-sale debt
securities for Storrer, Inc. are as follows. The securities are considered to be a long-term investment.
Fair Value
$16,000
14,000
21,000
$51,000
Security
A
B
с
Cost
$17,500
12,500
23,000
$53,000
Instructions
a. Prepare the adjusting entry at December 31, 2022, to report the securities at fair value.
b. Show the statement presentation at December 31, 2022, after adjustment to fair value.
c. E. Kretsinger, a member of the board of directors, does not understand the reporting of the unreal-
ized gains or losses. Write a letter to Ms. Kretsinger explaining the reporting and the purposes that
it serves.
Chapter C Solutions
FINANCIAL ACCT-CONNECT
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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- 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 Creditarrow_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_forwardBlossom SE has the following data at December 31, 2020. Securities Cost Fair Value Trading €118,200 €126,300 Non-trading 104,000 92,900 The non-trading securities are held as a long-term investment. This is the first year of the company's operations. Prepare the adjusting entries to report each class of 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 O for the amounts.) Account Titles and Explanation Debit Creditarrow_forward
- 2 Required information Problem 15-3A (Algo) Debt Investments in available-for-sale securities; unrealized and realized gains and losses LO P3 [The following information applies to the questions displayed below.] Stoll Company's long-term available-for-sale portfolio at the start of this year consists of the following. Available-for-Sale Securities Company A bonds Fair Value $ 492,000 155,000 642,140 Stoll enters into the following transactions involving its available-for-sale debt securities this year. January 29 Sold one-half of the Company B notes for $78,820. July 6 Purchased Company X bonds for $122,100. November 13 Purchased Company Z notes for $267,300. December 9 Sold all of the Company A bonds for $524,800. Fair values at December 31 are B, $82,300; C, $603,800; X. $120,000; and Z, $276,000. Company B notes Company C bonds Problem 15-3A (Algo) Part 1 and 2 Cost $ 534,100 159, 140 662,400 Required: 1. Prepare journal entries to record these transactions, including the December…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_forwardRequired information Problem 15-3A (Algo) Debt investments in available-for-sale securities; unrealized and realized gains and losses LO P3 [The following information applies to the questions displayed below] Stoll Company's long-term available-for-sale portfolio at the start of this year consists of the following. Available-for-Sale Securities Cost Company A bonds Company B notes $530,700 159,250 Fair Value $ 495,000 151,000 647,710 Company C bonds 661,000 Stoll enters into the following transactions involving its available-for-sale debt securities this year. January 29 Sold one-half of the Company B notes for $78,000. July 6 Purchased Company X bonds for $123,600. November 13 Purchased Company Z notes for $267,900. December 9 Sold all of the Company A bonds for $518,300. Fair values at December 31 are B. $84,300; C, $604,800, X, $100,000, and Z, $288,000. Problem 15-3A (Algo) Part 1 and 2arrow_forward
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