Loreal-American Corporation purchased several marketable securities during 2021. At December 31, 2021, the company had theinvestments in bonds listed below. None was held at the last reporting date, December 31, 2020, and all are considered securitiesavailable-for-sale.Unrealized HoldingGain (Loss)CostFair ValueShort term:Blair, Inc.ANC Corporation$ 484,000452,000$ 403,000484,000$(81,000)32,000Totals$ 936,000$ 887,000$(49,000)Long term:Drake Corporation$ 484,000718,000$ 562,000$ 78,000(56,000)$ 22,000Aaron Industries662,000Totals$1,202,000 $1,224,000Required:1. Prepare appropriate adjusting entries at December 31, 2021.2. What amount would be reported in the income statement at December 31, 2021, as a result of the adjusting entry?Answer is complete but not entirely correct.Complete this question by entering your answers in the tabs below.Required 1Required 2What amount would be reported in the income statement at December 31, 2021, as a result of the adjusting entry?Amount$(27,000)< Required 1Required 2>

Net unrealized loss = Short term loss - Long term gain = $49000 -$22000 =$27000

Loreal-American Corporation purchased several marketable securities during 2021. At December 31, 2021, the company had the investments in bonds listed below. None was held at the last reporting date, December 31, 2020, and all are considered securities available-for-sale. Unrealized Holding Gain (Loss) Cost Fair Value Short term: Blair, Inc. ANC Corporation $ 484,000 452,000 $ 403,000 $(81,000) 32,000 484,000 Totals $ 936,000 $ 887,000 $(49,000) Long term: Drake Corporation $ 562,000 662,000 $1,202,000 $1,224,000 $ 484,000 $ 78,000 (56,000) $ 22,000 Aaron Industries 718,000 Totals Required: 1. Prepare appropriate adjusting entries at December 31, 2021. 2. What amount would be reported in the income statement at December 31, 2021, as a result of the adjusting entry? Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Required 1 Required 2 What amount would be reported in the income statement at December 31, 2021, as a result of the adjusting entry? Amount $(27,000) < Required 1 Required 2 >

Loreal-American Corporation purchased several marketable securities during 2021. At December 31, 2021, the company had the investments in bonds listed below. None was held at the last reporting date, December 31, 2020, and all are considered securities available-for-sale. Unrealized Holding Gain (Loss) Cost Fair Value Short term: Blair, Inc. ANC Corporation $ 484,000 452,000 $ 403,000 $(81,000) 32,000 484,000 Totals $ 936,000 $ 887,000 $(49,000) Long term: Drake Corporation $ 562,000 662,000 $1,202,000 $1,224,000 $ 484,000 $ 78,000 (56,000) $ 22,000 Aaron Industries 718,000 Totals Required: 1. Prepare appropriate adjusting entries at December 31, 2021. 2. What amount would be reported in the income statement at December 31, 2021, as a result of the adjusting entry? Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Required 1 Required 2 What amount would be reported in the income statement at December 31, 2021, as a result of the adjusting entry? Amount $(27,000) < Required 1 Required 2 >

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter13: Investments And Long-term Receivables

Section: Chapter Questions

Problem 1MC

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During 2021, Anthony Company purchased debt securities as a long-term investment and classified them as trading. All securities were purchased at par value. Pertinent data are as follows: The net holding gain or loss included in Anthonys income statement for the year should be: a. 0 b. 3,000 gain c. 9,000 loss d. 12,000 loss
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.
Loreal-American Corporation purchased several marketable securities during 2021. At December 31, 2021, the company had the investments in bonds listed below. None was held at the last reporting date, December 31, 2020, and all are considered securities available-for-sale. Cost Fair Value Unrealized HoldingGain (Loss) Short term: Blair, Inc. $ 480,000 $ 405,000 $ (75,000 ) ANC Corporation 450,000 480,000 30,000 Totals $ 930,000 $ 885,000 $ (45,000 ) Long term: Drake Corporation $ 480,000 $ 560,000 $ 80,000 Aaron Industries 720,000 660,000 (60,000 ) Totals $ 1,200,000 $ 1,220,000 $ 20,000 Required:1. Prepare appropriate adjusting entry at December 31, 2021.2. What amount would be reported in the income statement at December 31, 2021, as a result of the adjusting entry?
Loreal-American Corporation purchased several marketable securities during 2018. At December 31, 2018, thecompany had the investments in bonds listed below. None was held at the last reporting date, December 31, 2017,and all are considered securities available-for-sale.Cost Fair ValueUnrealized HoldingGain (Loss)Short term:Blair, Inc. $ 480,000 $ 405,000 $(75,000)ANC Corporation 450,000 480,000 30,000Totals $ 930,000 $ 885,000 $(45,000)Long term:Drake Corporation $ 480,000 $ 560,000 $ 80,000Aaron Industries 720,000 660,000 (60,000)Totals $1,200,000 $1,220,000 $ 20,000Required:1. Prepare appropriate adjusting entries at December 31, 2018.2. What amounts would be reported in the income statement at December 31, 2018, as a result of these adjustingentries?
Loreal-American Corporation purchased several marketable securities during 2024. At December 31, 2024, the company had the investments in bonds listed below. None was held at the last reporting date, December 31, 2023, and all are considered securities available-for-sale. Short term: Blair, Incorporated ANC Corporation Totals Long term: Drake Corporation Aaron Industries Totals Cost $ 496,000 458,000 $ 954,000 $ 496,000 712,000 $ 1,208,000 Fair Value $ 397,000 496,000 $ 893,000 $ 568,000 668,000 $ 1,236,000 Unrealized Holding Gain (Loss) $ (99,000) 38,000 $ (61,000) $ 72,000 (44,000) $ 28,000 Required: 1. Prepare appropriate adjusting entry at December 31, 2024. 2. What amount would be reported in the income statement at December 31, 2024, as a result of the adjusting entry? Anwar is not complete
Beresford Inc. purchased several investments in debt securities during 2020, its first year of operations. The following information pertains to these securities. The fluctuations in their fair values are not considered permanent. Held-to-Maturity Securities: Fair Value 12/31/2020 Fair Value 12/31/2021 Amortized Cost 12/31/2020 Amortized Cost 12/31/2021 ABC Co. Bonds $ 375,000 $ 400,000 $ 367,500 $ 360,000 Trading Securities: Fair Value 12/31/2020 Fair Value 12/31/2021 Cost DEF Co. Bonds $ 48,000 $ 59,500 $ 66,000 GEH Inc. Bonds $ 47,000 $ 77,000 $ 39,000 IJK Inc. Bonds $ 44,000 $ 38,500 $ 32,900 Available-for-Sale Securities: Fair Value 12/31/2020 Fair Value 12/31/2021 Cost LMN Co. Bonds $ 130,500 $ 150,400 $ 140,000 What would be the balance in Beresford's accumulated other comprehensive income with respect to these investments in its 12/31/2021 balance sheet (ignore taxes)?
Stanley Dodge Corporation bought several marketable securities during 2020. At December 31, 2020, the company possessed investments in bonds listed below. All are considered securities available-for-sale. At January 1, 2020, the Corporation's Fair Value Adjustment Account had a credit balance of $150,000. Cost Fair Value Unrealized Holding Gain(Loss) Short Term: Ashkent, Inc $1,100,000 $1,300,000 Imagen Pharma 1,200,000 1,150,000 Total Long term: Erdinger Foods $2,000,000 $1,980,000 Ashanti Gold 1,500,000 1,750,000 Total Prepare the adjusting entries for December 31, 2020. Show how you arrived at the balance needed for the Fair Value Adjustment on 12/31/2020.
Beresford Inc. purchased several investments in debt securities during 2020, its first year of operations. The following information pertains to these securities. The fluctuations in their fair values are not considered permanent. Held-to-Maturity Fair Value Fair Value Amortized Cost Amortized Cost Securities: 12/31/2020 12/31/2021 12/31/2020 12/31/2021 АВС Со. Вonds $385,000 $410,000 $377, 500 $370, 000 Fair Value Fair Value Trading Securities: 12/31/2021 $ 66,000 $ 87,000 $ 48,500 12/31/2020 Cost DEF Co. Bonds $ 55,000 $ 57,000 $ 54,000 $ 69,100 $ 49,000 $ 42,900 GEH Inc. Bonds IJK Inc. Bonds Available-for-Sale Fair Value Fair Value Cost 12/31/2020 $147,400 Securities: 12/31/2021 LMN Co. Bonds $161,900 $150, 000 What balance sheet amount would Beresford report for the total of its investments in bonds at 12/31/2020?
Loreal-American Corporation purchased several marketable securities during 2024. At December 31, 2024, the company had the investments in bonds listed below. None was held at the last reporting date, December 31, 2023, and all are considered securities available-for-sale. Short term: Blair, Incorporated ANC Corporation Totals Long term: Drake Corporation Aaron Industries Totals Required 1 Required 2 Cost $ 516,000 468,000 $984,000 View transaction list Fair Value 1 " $ 387,000 516,000 $ 903,000 $ 516,000 702,000 $ 578,000 678,000 $ 1,218,000 $ 1,256,000 Journal entry worksheet Required: 1. Prepare appropriate adjusting entry at December 31, 2024. 2. What amount would be reported in the income statement at December 31, 2024, as a result of the adjusting entry? Complete this question by entering your answers in the tabs below. Unrealized Holding Gain (Loss) $ (129,000) 48,000 $ (81,000) Prepare appropriate adjusting entry at December 31, 2024. Note: If no entry is required for a…
Some of Ivanhoe Corporation's investments in debt securities are classified as trading securities and some are classified as available for-sale. The cost and fair value of each category at December 31, 2022, were as follows. Trading securities Available-for-sale securities Cost Fair Value $95,000 $83,500 $59,000 $63,000 Unrealized Gain (Loss) $(11,500) $4,000 At December 31, 2021, the Fair Value Adjustment-Trading account had a debit balance of $2,200, and the Fair Value Adjustment- Available-for-Sale account had a credit balance of $6,000. Prepare the required journal entries for each group of securities for December 31, 2022. (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)
. At December 31, 2021, Crane Corporation had the following debt securities that were purchased during 2021, its first year of operation: Cost FairValue UnrealizedGain (Loss) Trading Securities: Security A $90000 $ 66000 $(24000) B 16000 21000 5000 Totals $106000 $87000 $(19000) Available-for-Sale Securities: Security Y $80000 $90000 $10000 Z 95000 63000 (32000) Totals $175000 $153000 $(22000) All market declines are considered temporary. Fair value adjustments at December 31, 2021 should be established with a corresponding charge against Multiple choice Income Stockholders’ Equity $19000 $ 0 $22000 $ 0 $19000 $42000 $19000 $22000
Loreal-American Corporation purchased several marketable securities during 2024. At December 31, 2024, the company had the investments in bonds listed below. None was held at the last reporting date, December 31, 2023, and all are considered securities available-for-sale. Cost Fair Value Unrealized Holding Gain (Loss) Short term: Blair, Incorporated $ 516,000 $ 387,000 $ (129,000) ANC Corporation 468,000 516,000 48,000 Totals $ 984,000 $ 903,000 $ (81,000) Long term: Drake Corporation $ 516,000 $ 578,000 $ 62,000 Aaron Industries 702,000 678,000 (24,000) Totals $ 1,218,000 $ 1,256,000 $ 38,000 Required: Prepare appropriate adjusting entry at December 31, 2024. What amount would be reported in the income statement at December 31, 2024, as a result of the adjusting entry?