2. During 2020, Earl Company purchased debt securities as a long-term investment and classified them as trading. All securities were purchased at par value. The following information is presented: Market value at Security 12/20/2020 cost $ 30,000 $ 28,000 40,000 83,000 $151,000 B. 50,000 100,000 Totals $180,000 The net holding gain or loss included in Earl's income statement for the year should be?
Q: Hobson Company bought the securities listed below during 2020. These securities were classified as…
A: An unrealized loss is a decrease in the value of an ongoing investment.
Q: Concord Company has the following securities in its investment portfolio on December 31, 2020 (all…
A: Fees on the sale of share are deducted from sale proceeds of investments.
Q: 1. Arizona Company acquired a financial asset not held for trading during the last quarter of the…
A: A) First to Calculate the Stock Value Stock Value = Number of Shares * Cost per Share JFC Stock…
Q: Pompey Inc. carries the following marketable equity securities on its books at December 31, 2021 and…
A: Trading securities won't be fair valued through OCI since they are held for the purpose of trading.…
Q: Fuzzy Monkey Technologies, Inc., purchased as a long-term investment $80 million of 8% bonds, dated…
A: Since the student has posted multiple requirements, we shall answer the first three alone. Thank you
Q: 35. On January 1, 2020, Knit Company purchased 8% bonds in the face amount of P8,000,000. The bonds…
A: The company will raise capital for the expansion of business, or to purchase the capital asset by…
Q: Parnevik Company has the following securities in its investment portfolio on December 31, 2020 (all…
A: a) Date Accounts title and Explanation Debit ($) Credit ($) Jan.15 2021 Cash ($66,000 - 2,150)…
Q: Apple Corp. had the following portfolio of financial instruments of the December 31, 2020. All…
A: Realized gain on the sale of the bond When a bond is sold before its maturity, the realized gain…
Q: Atlas Company purchased the following investments during 2020: Classification Cost Market Value…
A: SOLUTION- ATLAS CO FOR THE YEAR ENDED 2020- SECURITY A OF COST = P900000 MARKET VALUE OF A =…
Q: On January 1, 2020, A Corp. had the following investments: Classification Investment Market Value…
A: Classification: Market value December 31, 2020 Cost Unrealized gain or loss A B C = A - B…
Q: In 2019, Osgood Corporation purchased $8.5 million worth of 10-year municipal bonds at face value.…
A: Loss on investment is the difference in fair value of the investment from the value it was…
Q: Fuzzy Monkey Technologies, Inc., purchased as a long-term investment $250 million of 8% bonds, dated…
A: Journal: Recording of a business transactions in chronological order.
Q: In 2019, Mickey Mouse Company purchased trading securities for P2,000,000. In the year ending 2019,…
A: An unrealized gain is an increase in the value of an asset or investment,but has not yet sold for…
Q: Red Company had the following portfolio of equity securities to other comprehensive income at…
A: Available for Sale Security: It is the Investments in equity or debt securities and is classified…
Q: The following selected transactions relate to investment activities of Ornamental Insulation…
A: When equity or debt security are held for short term gain they are classified as held for trading.…
Q: On January 1, 2020, Acker Inc. had the following balance sheet. Acker Inc.Balance SheetAs of…
A: As posted multiple sub parts questions as per our guidelines policy we are answering first three…
Q: During 2021, the first year of operations, Beneath Company purchased the following equity…
A: The process of recording business transactions in the books of accounts for the first time is known…
Q: Can you help me to calculate adjusted net income, adjusted net income if FV of security B were…
A: FVOCI is the abbreviation of Fair Value through Other Comprehensive Income, when adjustments are…
Q: Fernandez Corp. invested its excess cash in securities during 2020. As of December 31, 2020, the…
A: Income statement is a statement prepared to know the net profit or loss derived from the operations…
Q: Paul Company presented the following information pertaining to its investments in equity securities.…
A: Note: Hi! Thank you for the question As per the honor code, We’ll answer the first question since…
Q: 11. Adam Corporation purchased debt securities during 2021 and classified them as securities…
A: Solution: Securities classified as available for sale is reported at fair value at year end and any…
Q: On April 30, 2015, Company acquired 10%, P100,000 bonds dated January 1, 2021 at 102. If the…
A: Formula: Initial carrying amount of the investment = Cash proceeds from Issue price of the bonds -…
Q: Fuzzy Monkey Technologies, Inc., purchased as a long-term investment $120 million of 6% bonds, dated…
A: Solution 1 to 3: Journal Entries - Fuzzy Monkey Technologies Inc. Event Date Particulars…
Q: At December 31, 2018, Hull-Meyers Corp. had the following investments that were purchased during…
A: The available-for-sale security (AFS) seems to be a debt or equities instrument acquired with the…
Q: Coronado Company has the following securities in its investment portfolio on December 31, 2020 (all…
A: In the context of the given question, we are required to prepare the journal entries of the Coronado…
Q: Holly Company invests its excess cash in marketable securities. At the beginning of 2019, it had the…
A: 1.
Q: Stanley Dodge Corporation bought several marketable securities during 2020. At December 31, 2020,…
A: Securities purchased as available for sale indicate those investments which are neither trading…
Q: During 2020, Carpenters Corporation purchased equity securities and carried them at fair value…
A: Fair value: It implies to the actual price that is to be received by the seller on selling it's…
Q: 1. Prepare journal entries to record the preceding information. 2. What is the unrealized holding…
A:
Q: At the beginning of 2019, Ace Company had the following portfolio of investments in…
A: FASB indicates a non-profit private orientation that is engaged in providing guidelines to deal with…
Q: Beresford Inc. purchased several investments in debt securities during 2020, its first year of…
A: Introduction: A balance sheet is one of the financial statements that cover the assets, liabilities,…
Q: Jupiter Bank decides to invest in trading securities in order to take advantage of short-term gains.…
A: 1. Date Account Titles Debit Credit Jan. 15, 2020 Investment in Trading Securities (1,000 *…
Q: On January 1, 2020, Liam Company purchased bonds with face amount of P10,000,000 for P10,515,000.…
A: Bonds Face amount = P 10000000 Cash paid for bonds = P 10515000 December 31 , 2020 bonds are quoted…
Q: Cloud 9 Inc. has equity securities designated as at fair value through profit or loss that were…
A: Investment in securities means where the company purchased the share or other securities of other…
Q: During 2019, the first year of operation, Maly Corporation made various investments in trading…
A: given, cost market value xyz 1300000 1250000 mno 800000 900000 fgh 1000000 700000
Q: At the beginning of 2019, Ace Company had the following portfolio of investments in…
A: The question is based on the concept of Financial Accounting.
Q: In 2019, Edward Company purchased equity securities as a trading investment. For the year ended…
A: Workings:
Q: At the beginning of 2019, Ace Company had the following portfolio of investments in…
A: Journal entry : It is prepared to record the financial and non financial transaction of the business…
Q: On January 1, 2020, Ye Company purchased 8% bonds in the face amount of P4,000,000. The bonds mature…
A: If the entity changes their classification from FVOCI to FVTPL then the unrealized gain/ loss are…
Q: On January 1, 2021, Jason Corp. purchased 5-year bonds with a face value of P10,000,000 and a stated…
A: When bonds were classified based on business model of collecting contractual cash flows and to sell,…
Q: 35. On January 1, 2020, Knit Company purchased 8% bonds in the face amount of P8,000,000. The…
A: The company can raise funds for the expansion or to purchase a capital asset by issuing the shares,…
Q: On January 1, 2020, Acker Inc. had the following balance sheet. Acker Inc. Balance Sheet As of…
A: Working Note : January 1, 2020 Fair value 240,000 Less: Accumulated other comprehensive…
Q: Splendid Company purchased equity securties during 2020 to be heid as investmenta. The cost and…
A: Financial Management: Financial management comprises of two words i.e. Finance and management.…
Q: Culver Company has the following securities in its portfolio on December 31, 2020. None of these…
A: In Investment a/c if market value >cost then it is appreciation it will go unrealised…
Q: Some of Blossom Corporation's investments in debt securities are classified as trading securities…
A: No. Account Titles and Explanation Debit Credit Trading securities: 1. Unrealized…
Q: 1 During 2020, LOVE Company purchased marketable equity securities for P1,850,000 to be held as…
A: Income statement: The income statement is one of the three primary financial statements used to…
Q: Lopez Company purchased equity securities during 2020 to be held as Investment. The cost and Market…
A: Answer - Journal Entry for 2020 - Date Particulars Debit Credit 12.31.2020 Trading…
Q: On January 1, 2020, A Corp. had the following investments: Classification Investment Market Value…
A: Balance sheet: This financial statement reports a company’s resources (assets) and claims of…
Step by step
Solved in 2 steps with 2 images
- Refer to the information in RE13-5. Assume that on December 31, 2019, the investment in Smith Corporation bonds has a market value of 12,500. Prepare the year-end journal entry to record the unrealized gain or loss.Dunn Company recognized a 5,000 unrealized holding gain on investment in Starbuckss long-term bonds during 2019. The company classified its investment as an available-for-sale security. How would this information be reported on a statement of cash flows prepared using the indirect method?Paul Company presented the following information pertaining to its investments in equity securities. FVPL FVOCICost P1,000,000 P1,000,000Market value December 31, 2020 1,050,000 980,000 December 31, 2019 950,000 920,0001. What amount should Paul Company report as unrealized gain on its 2020 profit or loss? a. P160,000 b. P110,000 c. P100,000 d. P 50,000 2.What amount should Paul report as unrealized gains/losses in the shareholders' equity of its December 31, 2020 statement of financial position? a. P60,000 credit b. P20,000 debit c. P80,000 debit d. P20,000 credit
- Can you help me to calculate adjusted net income, adjusted net income if FV of security B were 285,000, value of held for trading securities as of 12/31/2020 and assuming these securities at measured at FVOCI, calculate the value of these financial assets as of 12/31/2020 Problem: ABC Corporation buys and sells securities expecting to earn profits on short term differences in price. during 2020, ABC Corporation purchased the following held for trading securities. Security A: Cost- 195,000; FV at 12/31/2020- 225,000 Security B: Cost- 300,000; FV at 12/31/2020- 162,000 Security C: Cost- 678,000; FV at 12/31/2020- 660,000 Before any adjustments related to these securities, ABC Corporation had net income of 900,000On January 1, 2020, A Corp. had the following investments: Classification Investment MarketValue MaturityValue Cost Trading K Inc. bonds $1,900 $1,800 Trading S Co. bonds 3,100 3,000 Held-to-maturity G Inc. bonds (due 12/31/2022) $10,000 9,700 During the year, A Corp. acquired M Co. bonds for $1,000 and classified it as trading. At year-end, the M Co. bonds have fair market value of $1,200. The K Inc. investment on December 31 had a fair market value of $2,500. The S Co. investment had a December 31 market value of $3,500, and the G Inc. bonds had a December 31 market value of $9,850. Required: Indicate the balance sheet classification and where unrealized holding gains/losses would appear on the December 31, 2020 financial statements for each investment. Classification Balance SheetValuation : Trading Securities (at fair value) $fill in the blank 2 : Held-to-maturity (amortized cost) $fill in the blank 4On January 1, 2020, A Corp. had the following investments: Classification Investment MarketValue MaturityValue Cost Trading K Inc. bonds $1,900 $1,800 Trading S Co. bonds 3,100 3,000 Held-to-maturity G Inc. bonds (due 12/31/2022) $10,000 9,700 During the year, A Corp. acquired M Co. bonds for $1,000 and classified it as trading. At year-end, the M Co. bonds have fair market value of $1,200. The K Inc. investment on December 31 had a fair market value of $2,500. The S Co. investment had a December 31 market value of $3,500, and the G Inc. bonds had a December 31 market value of $9,850. Required: Indicate the balance sheet classification and where unrealized holding gains/losses would appear on the December 31, 2020 financial statements for each investment.
- At December 31, 2018, Hull-Meyers Corp. had the following investments that were purchased during 2018, itsfirst year of operations:Cost Fair ValueTrading Securities:Security A $ 900,000 $ 910,000Security B 105,000 100,000Totals $ 1,005,000 $ 1,010,000 Securities Available-for-Sale:Security C $ 700,000 $ 780,000Security D 900,000 915,000Totals $ 1,600,000 $ 1,695,000Securities to Be Held-to-Maturity:Security E $ 490,000 $ 500,000Security F 615,000 610,000Totals $ 1,105,000 $ 1,110,000No investments were sold during 2018. All securities except Security D and Security F are considered shortterminvestments. None of the fair value changes is considered permanent.Required:Determine the following amounts at December 31, 2018.1. Investments reported as current assets2. Investments reported as noncurrent assets3. Unrealized gain (or loss) component of income before taxes4. Unrealized gain (or loss) component of accumulated other comprehensive income in shareholders’ equityUse the following information on a company's investments in debt securities to answer the following question. The company's accounting year ends December 31. Investment Date of Acquisition 9/20/23 $38,000 Colt Compan y bonds Cost Fair Value Date Sold Selling 12/31/23 Price $37,000 2/10/24 $42,000 Dana Compan y bonds 10/2/23 14,000 14,200 1/17/24 13,000 If the above investments are categorized as available-for-sale securities, what is the net effect on 2024 other comprehensive income? Select one: a. $ 800 increase b. $0 c. $3,800 increase d. $ 800 decreasethout making journal entries. this 4. Vaughn Company began operations in 2024. Since then, it has reported the following gains and losses for its equity investments on the income statement: 2024 2025 2026 Gains (losses) from sale of securities $14,100 $(20,900) $13,800 Unrealized holding losses on valuation of securities (25,100) Unrealized holding gain on valuation of securities At January 1, 2027, Vaughn owned the following securities: Cost BKD Common (16,000 shares @ $32) $512,000 LRF Preferred (2,400 shares @ $106) 254,400 10,400 (14,700)
- On January 1, 2020, Acker Inc. had the following balance sheet. Acker Inc.Balance SheetAs of January 1, 2020 Assets Equity Cash $ 50,000 Common stock $260,000 Debt investments (available-for-sale) 240,000 Accumulated other comprehensive income 30,000 Total $290,000 Total $290,000 The accumulated other comprehensive income related to unrealized holding gains on available-for-sale debt securities. The fair value of Acker Inc.'s available-for-sale debt securities at December 31, 2020, was $190,000; its cost was $140,000. No securities were purchased during the year. Acker Inc.'s income statement for 2020 was as follows. (Ignore income taxes.) Acker Inc.Income StatementFor the Year Ended December 31, 2020 Dividend revenue $ 5,000 Gain on sale of investments 30,000 Net income $35,000 Instructions (Assume all transactions during the year were for cash.) d. Prepare a balance sheet as of December 31, 2020On January 1, 2020, Acker Inc. had the following balance sheet. Acker Inc.Balance SheetAs of January 1, 2020 Assets Equity Cash $ 50,000 Common stock $260,000 Debt investments (available-for-sale) 240,000 Accumulated other comprehensive income 30,000 Total $290,000 Total $290,000 The accumulated other comprehensive income related to unrealized holding gains on available-for-sale debt securities. The fair value of Acker Inc.'s available-for-sale debt securities at December 31, 2020, was $190,000; its cost was $140,000. No securities were purchased during the year. Acker Inc.'s income statement for 2020 was as follows. (Ignore income taxes.) Acker Inc.Income StatementFor the Year Ended December 31, 2020 Dividend revenue $ 5,000 Gain on sale of investments 30,000 Net income $35,000 Instructions (Assume all transactions during the year were for cash.) a. Prepare the journal entry to record the sale of the…1 During 2020, LOVE Company purchased marketable equity securities for P1,850,000 to be held as trading investments. In 2020, the entity appropriately reported an unrealized loss of 200,000 in the income statement. There was no change during 2021 in the composition of the portfolio of trading securities. Pertinent data on December 31, 2021 are: Security Cost Market A 600,000 700,000 B 450,000 400,000 C 800,000 900,000o What amount of unrealized gain on these securities should be included in the 2021 income statement? a. 350,000 b. 150,000 c. 550,000 d. 0