Gen Combo Ll Financial Accounting: Information For Decisions; Connect Ac
9th Edition
ISBN: 9781260260779
Author: Wild
Publisher: MCG
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Chapter C, Problem 9QS
Summary Introduction
Concept Introduction:
Investments are classified into short term investments and long term investment according the period of holding the investment. A long term investment is held for a period of more than one year. Long term investments are generally made to gain the safe and steady growth of the investment.
To prepare:the
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Prepare Tiker Company's journal entries to record the following transactions and the adjusting entry to record the fair value of the
stock investments portfolio. This is the first and only time the company purchased such securities.
May 9 Purchases 380 shares of Higo stock as a short-term investment at a cost of $43 per share. Tiker has
insignificant influence over Higo.
June 2 Sells 140 shares of its investment in Higo stock ($6,020 cost) at $46 per share.
December 31 The closing market price (fair value) of the Higo stock is $41 per share.
View transaction list
Journal entry worksheet
1
2
Purchases 380 shares of Higo stock as a short-term investment at a cost of
$43 per share. Tiker has insignificant influence over Higo.
Date
May 09
3
Note: Enter debits before credits.
Record entry
General Journal
Clear entry
Debit
Credit
View general journal
Derr Co. purchases stock investments (with insignificant influence) at a cost of $250 on December 15. This is its first and only purchase of such securities. On December 28, Derr received a $15 cash dividend from the stock investments. At year-end December 31, the stock investments had a fair value of $200. a. Prepare the December 15 purchase entry for stock investments. b. Prepare the December 28 receipt of cash dividends entry. c. Prepare the December 31 year-end adjusting entry for the stock investments’ portfolio. d. Explain how each account in entry c is reported in financial statements. e. Prepare the January 3 entry when a portion of its stock investments (that had cost $37) is sold for $40.
Prepare Tiker Company's journal entries to record the following transactions and the adjusting entry to record the fair value of the stock investments portfolio. This is the first and only time the company purchased such securities.
May
9
Purchases 240 shares of Higo stock as a short-term investment at a cost of $29 per share. Tiker has insignificant influence over Higo.
June
2
Sells 40 shares of its investment in Higo stock ($1,160 cost) at $32 per share.
Dec.
31
The closing market price (fair value) of the Higo stock is $27 per share.
Purchases 240 shares of Higo stock as a short-term investment at a cost of $29 per share. Tiker has insignificant influence over Higo.
Note: Enter debits before credits.
Date
General Journal
Debit
Credit
May 09
Sells 40 shares of its investment in Higo stock at $32 per share.
Note: Enter debits before credits.…
Chapter C Solutions
Gen Combo Ll Financial Accounting: Information For Decisions; Connect Ac
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 - 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 - Journ Co. purchased short-term investments in...Ch. C - Prob. 8QSCh. C - Prob. 9QSCh. C - Prob. 10QSCh. C - Prob. 11QSCh. C - Prob. 12QSCh. C - Complete the following descriptions by filling in...Ch. C - Complete the following descriptions by filling in...Ch. C - Prob. 15QSCh. C - Prob. 17QSCh. C - Complete the following descriptions by filling in...Ch. C - Prob. 2ECh. C - Prob. 4ECh. C - Prob. 5ECh. C - Prob. 6ECh. C - Prob. 7ECh. C - Use the following information of Prescrip Co. to...Ch. C - Prob. 9ECh. C - Prob. 10ECh. C - Prob. 12ECh. C - Complete the following descriptions by filling in...Ch. C - Prob. 14ECh. C - Prob. 1PSACh. C - Prob. 3PSACh. C - Prob. 4PSACh. C - Prob. 5PSACh. C - Prob. 6PSACh. C - Prob. 1PSBCh. C - Prob. 3PSBCh. C - Prob. 4PSBCh. C - Prob. 5PSBCh. C - Prob. 6PSBCh. C - Prob. CSPCh. C - Prob. 1GLPCh. C - Prob. 2GLPCh. C - Prob. 1FSACh. C - Prob. 2FSACh. C - Prob. 3FSACh. C - Prob. 2BTN
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