At December 31, 2027, the trading debt securities for Wildhorse, Inc. are as follows.SecurityCost Fair ValueA$17,900$15,900B C12,30013,90022,60018,500$52,800$48,300 (b)Show the balance sheet and income statement presentation at December 31, 2027, after adjustment toWildhorse, Inc.Balance Sheet (Partial)December 31, 2027>>$Wildhorse, Inc.Income Statement (Partial)For the Year Ended December 31, 2027eTextbook and MediaList of Accounts$RucinaceAccounting5月E

Part 2: Explanation:Step 1: Calculate the total cost and total fair value of the trading debt…

Answered: At December 31, 2027, the trading debt…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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At December 31, 2022, available-for-sale debt securities for Pharoah, Inc. are as follows. The securities are considered to be a long-term investment. Security (a) A B C Total Cost $16,985 12,930 21,760 $51,675 Fair Value $16.030 15,179 18,160 $49,369 Prepare the adjusting entry at December 31, 2022, to report the securities at fair value. (Credit account titles are automatically indented when the 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.) Date Account Titles and Explanation Dec. 31 Debit Credit
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. Security. Cost. Fair Value A $17,500 16,000 B 12,500 14,000 C 23,000 21,000 53,000 51,000 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.
At December 31, 2022, the trading debt securities for Sheridan, Inc. are as follows. Security A (a) B C Cost $17,800 12,000 Dec. 31 22,900 $52,700 Fair Value $16,300 13,600 19,400 $49,300 Prepare the adjusting entry at December 31, 2022, to report the securities at fair value. (List all debit entries before credit er Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No- for the account titles and enter O for the amounts.) Date Account Titles and Explanation Debit Credit
Metlock Corporation has the following trading portfolio of debt investments as of December 31, 2020. Security Cost A $16,340 B 18,920 C (a) 29,240 $64,500 (b) Fair Value $12,900 On January 22, 2021, Metlock Corporation sold security C for $27,520. List of Accounts 23,220 Prepare the adjusting entry for Metlock Corporation on December 31, 2020, to report the portfolio at fair value. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. List debit entry before credit entry.) Save for Later 24,940 $61,060 eTextbook and Media Date Account Titles and Explanation Dec. 31 METLOCK CORPORATION Balance Sheet (Partial) METLOCK CORPORATION Income Statement (Partial) Debit Indicate the balance sheet and income statement presentation of the fair value data for Metlock Corporation at December 31, 2020. $ Credit Attempts: unlimited Submit Answer
presentation. EH.6 (LO 3), AP At December 31, 2022, the trading debt securities for Gwynn, Inc. are as follows. Fair Value Instructions Security A B C Total Cost $18,100 12,500 23,000 $53,600 $16,000 14,800 18,000 $48,800 a. Prepare the adjusting entry at December 31, 2022, to report the securities at fair value. b. Show the balance sheet and income statement presentation at December 31, 2022, after adjustment to fair value. Prepare adjusting entry to record fair value, and indicate statement presentation.
EH.6 (LO 3), AP At December 31, 2022, the trading debt securities for Gwynn, Inc. are as follows. Security A B C Total Cost $18,100 12,500 23,000 $53,600 Fair Value $16,000 14,800 18,000 $48,800 Instructions a. Prepare the adjusting entry at December 31, 2022, to report the securities at fair value. b. Show the balance sheet and income statement presentation at December 31, 2022, after adjustment to fair value.
Cost and fair value data for the trading debt securities of Ivanhoe Company at December 31, 2022, are $64,220 and $63,810, respectively. (a1) Show the financial statement presentation of the trading securities. Ivanhoe Company (Partial) Balance Sheet A
At December 31, 2020, the available-for-sale debt securities for Larkspur, Inc. are as follows. Security Cost Fair Value X $28,600 $24,960 Y 13,000 13,520 23,920 18,720 $65,520 $57,200 (a) Prepare the adjusting entry at December 31, 2020, to report the securities at fair value. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. List debit entry before credit entry.) Date Account Titles and Explanation Dec. 31 N
The following information is also available: 1. Current assets include cash P3,800, accounts receivables P18,500, note receivables (maturity date is on July 1, 2023) P10,000 and land P12,000. 2. Long term investments include a P4,600 investment in fair value though other comprehensive income securities that is expected to be sold in 2022 and a P9,000 investment in AllDay company bonds that are expected to be held until their December 31, 2029 maturity date. 3. Property and equipment include buildings costing P63,400, inventories costing P30,500 and equipment costing P29,600. 4. Intangible assets include patents that cost P8,200 and on which P2,300 amortization have accumulated, and treasury shares that costs P1,800. 5. Other assets include prepaid insurance (which expires on November 30, 2022) P2,900, sinking fund for bond retirement P7,000 and trademarks that cost P5,200 and on which P1,500 amortization has accumulated. 6. Current liabilities include accounts payable P19,400, bonds…
E16.11 (LO 3), AP On December 31, 2022, available-for-sale debt securities for Storrer, Inc. are as follows. The securities are considered to be long-term investments. Security A B C Cost $17,500 12,500 23,000 $53,000 Fair Value $16,000 14,000 21,000 $51,000 Instructions Prepare the adjusting entry on December 31, 2022, to report the securities at fair value. Show the statement presentation on December 31, 2022, after adjustment to fair value. E. Kretsinger, a member of the board of directors, does not understand the reporting of the unrealized gains or losses. Write a letter to Ms. Kretsinger explaining the reporting and the purposes that it serves. Prepare to adjust entries for fair value, and indicate statement presentation for two classes of securities.
At December 31, 2020, the investments in the portfolio of the trading securities of Kennedy Company included the following.SecurityPurchaseDateOriginalPurchase PriceAtlanta Corp. bonds, 5%, $40,000Oct. 1, 2020$40,000Dallas Inc. bonds, 4%, $20,000Jul. 1, 202020,000e. Record the entry to sell the Atlanta Corp. bonds on January 2, 2021, for $45,000.Note: List multiple debits or credits (when applicable) in alphabetical order.f. Record the entry to sell the Dallas Inc. bonds on January 3, 2021, for $17,800.g. Adjust the Fair Value Adjustment account on December 31, 2021.Determine the investment related impact on net income in 2020 and 2021.
The following information is also available: 1. Current assets include cash P3,800, accounts receivables P18,500, note receivables (maturity date is on July 1,2023) P10,000 and land P12,000. 2. Long term investments include a P4,600 investment in fair value though other comprehensive income securitiesthat is expected to be sold in 2022 and a P9,000 investment in AllDay company bonds that are expected to be helduntil their December 31, 2029 maturity date. 3. Property and equipment include buildings costing P63,400, inventories costing P30,500 and equipment costingP29,600. 4. Intangible assets include patents that cost P8,200 and on which P2,300 amortization have accumulated, andtreasury shares that costs P1,800. 5. Other assets include prepaid insurance (which expires on November 30, 2022) P2,900, sinking fund for bondretirement P7,000 and trademarks that cost P5,200 and on which P1,500 amortization has accumulated. 6. Current liabilities include accounts payable P19,400, bonds payable…

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