How would the entries in part (a) change if the securities were classified as available-for-sale? (C
Q: The standard cost of product B manufactured by Coronado Company includes 3 units of direct materials…
A: Material price variance is computed when material is purchased. Material price variance is…
Q: The records for Redbud's defined benefit pension plan showed the following for the current year:…
A: The defined benefit pension plan is the obligation for the entity towards employees to compensate…
Q: A corporate bond maturing in 15 years with a coupon rate of 9.9 percent was purchased for $980 and…
A: Given Information: Par value = $1000 Coupon rate = 9.9% Current bond price - $980 YTM = 8% [9.9% -…
Q: A – F: Your client is a public company in which you maintain a small financial interest. How is your…
A: Auditor independence seems to be fundamental to the auditing profession. An audit that is…
Q: Differential Analysis for a Lease or Sell Decision Burlington Construction Company is considering…
A: The differential analysis is performed to compare the different alternatives available at the…
Q: How much of the $0.24 excess unit cost is traceable to apparent inefficient use of labor time?
A: How much of the $0.24 excess unit cost is traceable to apparent inefficient use of labor time? May…
Q: Rammazzotti, Inc., is looking for feedback on company performance. The company compares the budget…
A: Total budgeted costs includes the total cost which is to be incurred by the entity and these…
Q: 1. Materials are added at the start of the process in the first department of JG Manufacturing…
A: Disclaimer: “Since you have asked multiple questions, we will solve the first question for you. If…
Q: 10. Heaven Company adds materials at the start of production in the Forming Department. Data related…
A: Equivalent number of units are calculated when there is some work in progress inventory . Equivalent…
Q: Diane sold the following items during the current year: Item Holding Period…
A: When an individual disposes of the asset, he must compute the resulting gain or loss on such…
Q: transcations to change its risk profile. Which of the following transcations will for sure increase…
A: In order to change or increase the risk of the company there are many transactions that can be done…
Q: Chin Woo bought a home for $160,000. He put down 20%. The mortgage is at 8 1/2% for 25 years. What…
A: Total Present Value = $160,000 Down payment = 20% Present Value of Loan = $160,000 - 20% = $128,000…
Q: Req 1 to 3 Prepare journal entries to record (a) the copier's sale; (b) the adjustment to recognize…
A: When company sales the product and provides warranty on the sold product then it has to recognise…
Q: Prominent Sdn Bhd produces furniture at several factories. Its Seberang Prai factory produces office…
A: PARTICULARS MACHINE A MACHINE B A SALE REVENUE OF CHAIR (RM) 96000 96000 ( 800 X RM120 ) ( 800…
Q: Metlock Company began operations in 2019 and determined its ending inventory at cost and at…
A: ACCOUNTING STANDARDS - 2 Objective of this standard is to formulate the method of computation of…
Q: ETFs are the most popular investment instruments for individual and institutional investors. You are…
A: I believe the best way to design unique and stand out Bond ETFs is to focus on creating ETFs that…
Q: why did you multiple required purchases by 1/4 & 3/4? I am confused on this as i dont see it in the…
A: Budget is the estimation of future events or transactions which are expected by the entity to…
Q: On January 1, 2020, Vaughn Manufacturing issued 15,000 shares of $4 par value common stock for…
A: The journal entries are the first step of accounting to record the transactions on the regular…
Q: Assume a company has two divisions, Division B and Division C. Division B has provided the following…
A: Transfer price is the price where related parties will transact with each other, during the trade of…
Q: EllaJane Corporation was organized several years ago and was authorized to issue 4,000,000 shares of…
A: A journal is a list of all of your spending in chronological order. A journal is often pictured as a…
Q: Estimate the percent used up of Flowers depreciable assets.
A: 1. Formula to calculate percent (%) used up of flowers depreciable Assets : = Accumulated…
Q: Distinguish between lapping and kiting. Describe audit procedures that can be used to uncover each?
A: The strategies, procedures, and methods employed by auditors during audit procedures enable them to…
Q: The difference between the monthly payments on a $120,000 mortgage at 6 ½% and at 8% for 25 years…
A: EMI = [P x r x (1+r)n / (1+r)n - 1] Present Value = $120,000 Time period = 25 years or 300 months
Q: What is recorded as Sales if a company sold merchandise on February 19, 2020, with a P540,000 list…
A: Purchase discount: It is a type of discount a seller offers to its buyer for early payment. When a…
Q: Statement 1: The owner's personal withdrawals for the year cause a decrease in profit. Statement 2:…
A: Since you have posted multiple questions, as per the guidelines only the first question will be…
Q: The phase out amount changed from 400... to 150000 in 2021 for married filing jointly
A: Child Tax Credit- 2021 $3,600 for children who are 5 years old and under at the end of 2021; $3,000…
Q: The following information is available from the inventory records of columbia hoodies company for…
A: Inventory is the stock or merchandise held by the business to sell for a profit. There are different…
Q: Quebec. She gets together with them often. She wants to purchase a new aerobic trainer and would…
A: The decision regarding the purchase of any item depend on the manufacture that need to be considered…
Q: Questions 9 through 12 are based on the following information: On January 1, 2021, Bida-bida Corp.…
A: Lets understand the basics. Impairement is happen when carrying value of asset is less than…
Q: The amount of consideration to which the entity expects to be entitled in exchange for transferring…
A: As per IAS 115 Revenue recognition A performance obligation is an promise to customer to transfer…
Q: Lucky Number 13, Inc. ran into some unfortunate luck, having their IT environment hacked by a…
A: The correct answer is C. 0.974000 POUNDS
Q: Estimate both the variable costs per unit and the total monthly fixed costs using the high-low…
A: The high low method is way attempted by company to separate the fixed and variable costs from the…
Q: Which of the following income is subject to final tax if received by an individual taxpayer? I.…
A: Tax:- A tax is the compulsory payment which is imposed by the government on income and capital gain…
Q: What is the market price of a $1,000, 8 percent bond if the market interest rates rise to 10 percent…
A: Time value of money :— According to this concept, value of money in present day is greater than the…
Q: Marsha Terban bought a home for $119,000 with a down payment of $19,000. Her rate of interest is 12…
A: Explanation :
Q: Aaron, Ben, and Conrad are the founders of ABC Smith, Inc. and have the following financial…
A: The question asked to prepare the statement of cash flows of ABC Smith. Cash flow statement: The…
Q: Case 2: Team System Grandmas Garage currently employs six technicians. The shop is organized using…
A: Gross earnings is the earnings an enterprise makes after subtracting all of the costs which might be…
Q: The FCT and PCT method each produce different amounts for translation gains and losses due to the…
A: The FCT method is the functional currency translation method. The PCT method is the presentation…
Q: Required information [The following information applies to the questions displayed below.] Megamart…
A: Return on investment (ROI) :— It is calculated by dividing net operating income by average operating…
Q: Can someone give me instructions on how I can to perform a sensitivity analysis with WACC off an…
A: 1. Begin by calculating the Weighted Average Cost of Capital (WACC). This can be done by multiplying…
Q: The balance sheet for Quinn Corporation is shown here in market value terms. There are 28,000 shares…
A: A share repurchase, also known as a stock buyback, enables a company to invest in itself. The…
Q: The following issues relate to clients of the firm of accountants you work for. Each company has a…
A: Plant and machinery is recorded at Carrying Amount or Realisable Value,whichever is less as per IAS…
Q: All techniques, conflicting rankings Nicholson Roofing Materials, Inc., is considering two mutually…
A: The question has asked to compute the NPV, payback period, and IRR. Capital budgeting decision:…
Q: Which of the following will be debited in a closing entry? Withdrawals Depreciation Transportation…
A: Journal Entry :— It is an act of recording transaction in books of account when transaction…
Q: Exercise 8-8 (Algo) Record payroll (LO8-3) During January, Luxury Cruise Lines incurs employee…
A: JOURNAL ENTRIES Jounal entry is the First stage of Accounting Procedure. Journal entry is help…
Q: Hadden Corporation is evaluating a capital investment opportunity. This project would require an…
A: Net present value method :- It is defined as the difference between the present value of cash…
Q: For each of the following separate transactions: Sold a building costing $30,500, with $20,200 of…
A: Answer to Question (a): Reconstructed Journal Entry: 1 Sale of…
Q: On August 1, 2018, Mills Company borrowed $109000 cash on a one-year note that required Mills to pay…
A: The interest payable is the current liabilities for the business. The interest payable represents…
Q: Windsor Company has gathered the following information: Variable manufacturing overhead costs Fixed…
A: The question is based on the concept of Cost Accounting. Predetermined overhead rate can be…
Q: Information from the records of Conundrum Company for September was as follows: Sales $307,500…
A: Solution... Total product cost = Direct Material used + Direct labor + overhead (variable +…
F15.
Step by step
Solved in 3 steps
- 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 lossShamrock Company has the following portfolio of investment securities at September 30, 2020, its most recent reporting date. Investment Securities Horton, Inc. common (5,340 shares) Monty, Inc. preferred (3,430 shares) Oakwood Corp.common (1,040 shares) Cost $229,620 133,770 190,320 Fair Value $214,770 140,490 189,290 On October 10, 2020, the Horton shares were sold at a price of $53 per share. In addition, 3,210 shares of Patriot common stock were acquired at $54 per share on November 2, 2020. The December 31, 2020, fair values were Monty $105,670, Patriot $139,790, and Oakwood $204,600. Date Prepare the journal entries to record the sale, purchase, and adjusting entries related to the equity securities in the last quarter of 2020. (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.) Account Titles and Explanation Debit CreditLarkspur Company has the following securities in its investment portfolio on December 31, 2020 (all securities were purchased in 2020): (1) 2,800 shares of Anderson Co. common stock which cost $50,400, (2) 10,800 shares of Munter Ltd. common stock which cost $604,800, and (3) 6,300 shares of King Company preferred stock which cost $270,900. The Fair Value Adjustment account shows a credit of $10,400 at the end of 2020. In 2021, Larkspur completed the following securities transactions. 1. On January 15, sold 2,800 shares of Anderson's common stock at $20 per share less fees of $2,160. 2. On April 17, purchased 900 shares of Castle's common stock at $33 per share plus fees of $2,030. On December 31, 2021, the market prices per share of these securities were Munter $65, King $40, and Castle $25. In addition, the accounting supervisor of Larkspur told you that, even though all these securities have readily determinable fair values, Larkspur will not actively trade these securities because…
- McElroy Company has the following portfolio of investment securities at September 30, 2020, its most recent reporting date. Investment Securities Cost Fair Value Horton, Inc. common (5,000 shares) $215,000 $200,000 Monty, Inc. preferred (3,500 shares) 133,000 140,000 Oakwood Corp. common (1,000 shares) 180,000 179,000 On October 10, 2020, the Horton shares were sold at a price of $54 per share. In addition, 3,000 shares of Patriot common stock were acquired at $54.50 per share on November 2, 2020. The December 31, 2020, fair values were Monty $106,000, Patriot $132,000, and Oakwood $193,000. Instructions Prepare the journal entries to record the sale, purchase, and adjusting entries related to the equity securities in the last quarter of 2020.Pecan Company has the following portfolio of investment securities at September 30, 2025, its last reporting date. Trading Securities Perry, Inc. common (12,000 shares) Platter, Inc. common (6,100 shares) Pokey Corp. preferred (1,000 shares) Cost $367,000 244,000 Date 94,000 Fair Value $351,000 248,000 On November 5, 2025, the Platter shares were sold at a price of $42 per share. In addition, 8,000 shares of Patriot common stock were acquired at $37 per share on November 26, 2025. The December 31, 2025, fair values were: Perry $348,000, Pokey $90,000, and the Patriot common $301,000. The Fair Value Adjustment account was at zero (0) as of September 30, 2025. 89,000 Prepare the journal entries to record the sale, purchase, and adjusting entries related to the equity securities in the last quarter of 2025. (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…(Equity Securities Entries) McElroy Company has the following portfolio of investment securities at September 30, 2020, its most recent reporting date. Investment Securities Cost Fair Value Horton, Inc. common (5,000 shares) $215,000 $200,000 Monty, Inc. preferred (3,500 shares) 133,000 140,000 Oakwood Corp. common (1,000 shares) 180,000 179,000 On October 10, 2020, the Horton shares were sold at a price of $54 per share. In addition, 3,000 shares of Patriot common stock were acquired at $54.50 per share on November 2, 2020. The December 31, 2020, fair values were Monty $106,000, Patriot $132,000, and Oakwood $193,000. Instructions Prepare the journal entries to record the sale, purchase, and adjusting entries related to the equity securities in the last quarter of 2020.
- 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.Flounder Corp. has the following portfolio of securities acquired for trading purposes and accounted for using the FV-NI model at September 30, 2023, the end of the company's third quarter: Investment Cost Fair Value 47,500 common shares of Yuen Inc. $266,000 $190,000 3,200 preferred shares of Monty Ltd. 121,600 128,000 1,350 common shares of Oakwood Inc. 121,500 120,825 On October 8, 2023, the Yuen shares were sold for $5.60 per share. On November 16, 2023, 3,000 common shares of Patriot Corp. were purchased at $43.80 per share. Flounder pays a 1% commission on purchases and sales of all securities. At the end of the fourth quarter, on December 31, 2023, the fair values of the shares held were as follows: Monty $102,050; Patriot $116,750; and Oakwood $137,025. Flounder prepares financial statements every quarter. (a) Your answer is partially correct. Prepare the journal entries to record the sale, purchase, and adjusting entries related to the portfolio for the fourth quarter of 2023.…(a) Prepare the entry for the security sale on January 15, 2021. (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.) Date Account Titles and Explanation Debit Credit Jan. 15, 2021
- Pina Colada Corp. has the following portfolio of securities acquired for trading purposes and accounted for using the FV-NI model at September 30, 2023, the end of the company's third quarter: Investment Cost Fair Value 50,500 common shares of Yuen Inc. $313,100 $202,000 3,800 preferred shares of Monty Ltd. 1,650 common shares of Oakwood Inc. 144,400 152,000 148,500 147,675 On October 8, 2023, the Yuen shares were sold for $6.20 per share. On November 16, 2023, 3,000 common shares of Patriot Corp. were purchased at $44.40 per share. Pina Colada pays a 1% commission on purchases and sales of all securities. At the end of the fourth quarter, on December 31, 2023, the fair values of the shares held were as follows: Monty $102,950; Patriot $118,250; and Oakwood $167,475. Pina Colada prepares financial statements every quarter. (a) Prepare the journal entries to record the sale, purchase, and adjusting entries related to the portfolio for the fourth quarter of 2023. (Credit account titles…Accounting Swifty Corp. has the following portfolio of securities acquired for trading purposes and accounted for using the FV-NI model at September 30, 2020, the end of the company’s third quarter: Investment Cost Fair Value 53,000 common shares of Yuen Inc. $355,100 $212,000 4,300 preferred shares of Monty Ltd. 163,400 172,000 1,900 common shares of Oakwood Inc. 171,000 170,050 On October 8, 2020, the Yuen shares were sold for $6.70 per share. On November 16, 2020, 3,000 common shares of Patriot Corp. were purchased at $44.90 per share. Swifty pays a 1% commission on purchases and sales of all securities. At the end of the fourth quarter, on December 31, 2020, the fair values of the shares held were as follows: Monty $103,700; Patriot $119,500; and Oakwood $192,850. Swifty prepares financial statements every quarter. (a) Prepare the journal entries to record the sale, purchase, and adjusting entries related to the portfolio for the fourth quarter of 2020.…SLC Corp. has the following portfolio of securities acquired for trading purposes and accounted for using the FV-NI model. SLC Inc. prepares financial statements every quarter. At Sept 30, 2021, the end of the company’s third quarter, the following information was reported: Investment Cost Fair Value 50,000 Common Shares – Seneca Inc. $215,000 $200,000 3,500 Preferred Shares – Loyalist Inc. $135,000 $140,000 2,000 Common Shares – Algonquin Inc. $180,000 $179,000 Transactions that occurred in the fourth quarter: Oct 8, 2021 The Seneca Shares were sold for $4.30 per share Nov 16, 2021 3,000 common shares of Humber Inc. were purchased at $44.50 per share SLC Inc. pays a 1% commission on purchase and sales of all securities. At the end of the fourth quarter, on December 31, 2021, the fair value of the shares were as follows: Investment Fair Value Loyalist Inc. $106,000 Algonquin Inc. $203,000 Humber Inc. $122,000 Instructions: Prepare the journal entries to record the sale, purchase and…