Debit Fair Value Adjustment-Avalable for-Sale $14800, Credt Unrealtzed Gan-Equty. S14,800Carpark Services began operations in 20X1 and maintains investments in available for sale debt securites The year endcost and fair values for its portfolio of debt securities followsDebit Far Value Adjustment- Avalable-for-Sale S1,400, Creat Unreatred Loss-Equty $3,400, CeatUnrealzed Gain - Equty. S8.000Available for-Sale SecuritiesDecember 31, 20X1December 31, 20x2Fair Value$ 313,400$ 402,800Cost$ 310,000$ 388,000The yeor-end odjusting entry to record the unrealized gaintoss at December 31, 20X2 isDebit Unreaed Gan-Equity $14.800 Credit Far Value Acjustmert-Avatabie-for Sale $14s00Mutiple ChoiceDebit Far Value Adustment - Avalable-forSale S400, Creat Unrealzed Gan-Equity $1400Debit Fair Vaue Adustment-Available-for-Sale $14.800 Creait Unreaszed LOss-Equty S14 s00O O O

A journal entry is being used to record a business arrangement in a corporation's accounting…

Carpark Services began operations in 20X1 and mantans investments in avalate or sale debt securtes The yearend cost and fair values for its portfolio of debt securities follows Available for-Sale securities Cost $ 310,000 $ 388,000 Fair Vale $ 313,400 $ 402, Decenber 31, 20x1 Decenber 31, 20x2 The yeor end adjusting entry to record the unrealtzed gainvloss et December 31 202 Mutioe Choice

Carpark Services began operations in 20X1 and mantans investments in avalate or sale debt securtes The yearend cost and fair values for its portfolio of debt securities follows Available for-Sale securities Cost $ 310,000 $ 388,000 Fair Vale $ 313,400 $ 402, Decenber 31, 20x1 Decenber 31, 20x2 The yeor end adjusting entry to record the unrealtzed gainvloss et December 31 202 Mutioe Choice

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

Chapter4: The Balance Sheet And The Statement Of Shareholders' Equity

Section: Chapter Questions

Problem 5RE

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TB MC Qu. 15-99 (Algo) Carpark Services... Carpark Services began operations in 20X1 and maintains investments in available-for-sale debt securities. The year-end cost and fair values for its portfolio of debt securities follows. Available-for-Sale Securities December 31, 20X1 December 31, 20X2 Cost $ 340,000 $ 412,000 Multiple Choice Fair Value $ 344,600 $ 429, 200 The year-end adjusting entry to record the unrealized gain/loss at December 31, 20X2 is: Debit Unrealized Gain - Equity $17,200; Credit Fair Value Adjustment - Available-for-Sale $17,200. Debit Fair Value Adjustment - Available-for-Sale $12,600; Credit Unrealized Loss - Equity $4,600; Credit Unrealized Gain - Equity, $8,000. Debit Fair Value Adjustment - Available-for-Sale $17,200; Credit Unrealized Gain - Equity, $17,200. Debit Fair Value Adjustment - Available-for-Sale $17,200; Credit Unrealized Loss - Equity $17,200. Debit Fair Value Adjustment - Available-for-Sale $12,600; Credit Unrealized Gain Equity $12,600.
Adjusting AFS Debt Securities to Fair Value A portfolio of investments of available-for-sale securities held by Dow Inc. is as follows. Dece. 31, Year 1 Cost Fair Value Eastern Corp. bonds $240,000 $256,000 Western Corp. bonds 400,000 410,000 Total $666,000 $640,000 Dece. 31, Year 2 Cost Fair Value $280,000 Eastern Corp. bonds $240,000 Western Corp. bonds 400,000 380,000 Total $640,000 $660,000 The Fair Value Adjustment account had a $0 balance on January 1 of Year 1. No sales or purchases took place in the available-for-sale investment portfolio in Year 1 and Year 2. a. Record the adjusting entry on December 31 of Year 1 to adjust the debt investments to fair value. b. Record the adjusting entry on December 31 of Year 2 to adjust the debt investments to fair value. Date a. Dec. 31, Year 1 b. Dec. 31, Year 2 Account Name To record adjusting entry. To record adjusting entry. Amount in income statement Net gain (loss) on investment $ Dr. c. Indicate how the adjustment to fair value in…
Carpark Services began operations in 20X1 and maintains long-term investments in available-for-sale debt securities. The year-end cost and fair values for its portfolio of debt securities follows. The year-end adjusting entry to record the unrealized gain/loss at December 31, 20X2 is: Available-for-Sale Securities Cost Fair Value December 31, 20X1 $ 305,000 $ 300,000 December 31, 20X2 $ 384,000 $ 390,000
Expected credit losses on Reclassification date 5. An entity reclassifies a portfolio of bonds on Jan. 1, 20x3. Information on the portfolio is as follows: Carrying amount under previous classification Fair value on reclassification date (Jan. 1, 20x3) 500,000 490,000 Case 1: Amortized cost to FVPL - Cessation of impairment portfolio is reclassified from Amortized cost to FVPL. The P500,000 carrying amount is the portfolio's gross carrying amount. A loss allowance of P6,000 (equal to lifetime expected credit losses) was recognized during the period the asset was held as amortized cost. Provide the reclassification journal entry. Case 2: FVPL to AC - Commencement of impairment The portfolio is reclassified from FVPL to Amortized cost. On reclassification date, the entity estimates 12-month expected credit losses of P4,000. Provide the journal entries. Case 3: Amortized cost to FVOCI – Retention of impairment The portfolio is reclassified from Amortized cost to FVOCI. The P500,000…
Adjusting AFS Debt Securities to Fair Value A portfolio of investments of available-for-sale securities held by Dow Inc. is as follows. Dec. 31, 2020 Cost Fair Value Eastern Corp. bonds $204,000 $217,600 Western Corp. bonds 340,000 348,500 Total $544,000 $566,100 Dec. 31, 2021 Cost Fair Value Eastern Corp. bonds $204,000 $238,000 Western Corp. bonds 340,000 323,000 Total $544,000 $561,000 The Fair Value Adjustment account had a $0 balance on January 1, 2020. No sales or purchases took place in the available-for-sale investment portfolio in 2020 and 2021. a. Record the adjusting entry on December 31, 2020, to adjust the debt investments to fair value. Date Account Name Dr. Cr. Dec. 31, 2020 b. Record the adjusting entry on December 31, 2021, to adjust the debt investments to fair value. . Date Account Name Dr. Cr. Dec. 31, 2021 c. Indicate how the adjustment to fair value in (b) would be…
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.
Debt Investments Classification Cost orAmortized Cost Fair Valueat end if 2017 Interest Incomein 2017 Sales Pricein 2018 Trading $15,000 $14,000 $750 $14,500 Available-for-Sale $18,000 $15,000 $1,000 $16,000 Held-to-Maturity $24,000 $25,500 $950 For the Houston Company, what is the unrealized gain or loss that will appear in the Accumulated Other Comprehensive Account in 2017? Select one: a. $1,500 gain b. $4,000 Loss c. $2,500 Loss d. $1,000 Loss e. $3,000 Loss PreviousSave AnswersNext
Waterton Corporation reported that short-term investments in debt securities consisted of the following (in millions): Amortized Cost Fair Value December 31 Short-term investments available - for - sale debt securities $1,373.6 $1,373.8 Short-term investments-trading debt securities 161.8 132.0 Total short-term investments $1,535.4 $1,505.8 Which of the following is true? Select one: a. Unrealized losses of $29.8 million on trading securities are included in annual income. b. Waterton's year-end balance sheet includes short-term investments of $1,535.4 million. c. There are no net unrealized gains on available-for-sale securities. d. Accumulated other comprehensive income included no unrealized gains or losses. e. None of these are correct
Required information [The following information applies to the questions displayed below] Kitty Company began operations in the current year and acquired short-term debt investments in trading securities. The year-end cost and fair values for its portfolio of these debt investments follow. Trading Securities Tesla Bonds Nike Bonds Ford Bonds View transaction list Cost $ 14,100 22,800 5,700 Journal entry worksheet < 1 Prepare the journal entry to record the December 31 year-end fair value adjustment for these debt securities Fair Value $ 10,575 Record the year-end adjustment to fair value, if any. 23,940 4,560
s. 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 field
At December 31, 2020, the available-for-sale debt portfolio for Shamrock, Inc. is as follows. Security Cost Fair Value UnrealizedGain (Loss) A $32,375 $27,750 $(4,625 ) B 23,125 25,900 2,775 C 42,550 47,175 4,625 Total $98,050 $100,825 2,775 Previous fair value adjustment balance—Dr. 740 Fair value adjustment—Dr. $2,035 On January 20, 2021, Shamrock, Inc. sold security A for $27,935. The sale proceeds are net of brokerage fees. Part 1 Show the balance sheet presentation of the investment-related accounts at December 31, 2020. (Do not leave any answer field blank. Enter 0 for amounts.) SHAMROCK, INCBalance Sheet $ : $…
At December 31, 2020, the available-for-sale debt portfolio for Crane, Inc. is as follows. Security A B C Total Previous fair value adjustment balance-Dr. Fair value adjustment- Dr. Cost $17,500 12,200 500 Fair Value $1,300 $15,000 23,400 25,700 $53,100 $54,900 14,200 Unrealized Gain (Loss) $(2,500 2,000 2,300 1,800 ) On January 20, 2021, Crane, Inc. sold security A for $15,100. The sale proceeds are net of brokerage fees. Crane, Inc. reports net income in 2020 of $118,000 and in 2021 of $143,000. Total holding gains (including any realized holding gain or loss) equal $49,000 in 2021. Prepare a statement of comprehensive income for 2020, starting with net income. Prepare a statement of comprehensive income for 2021, starting with net income. Please show underlying calculations (especially for reclassification adjustment for 2021). I correctly identified the statement of income for 2020, but am stuck on the one for 2021. Thank you!