Plotner Corporation has the following trading portfolio of stock investments as of December 31, 2019, Security Cost Fair Value $19,000 $15,000 B. 22,000 27,000 34.000 29,000 $25.000 $7.1.000 On january 22, 2020, Plotner Corporation sold security C for $32,000. Instructions fa) Prepare the adjusting entry for Plotner Corporation on December 31, 2019, to report the portfolio at fair value (bi Indicate the balance sheet and income statement presentation of the fair value data for Plotner Corporation at December 31, 2019 i Prepare the jourmal entry for the 2020 sale
Q: Adjusting AFS Debt Securities to Fair Value A portfolio of investments of available-for-sale…
A: Step 1 Fair value adjustments, is the adjusted value of the investment at each reporting date as per…
Q: Sandhill Company's equity securities portfolio which is appropriately included in current assets is…
A: Since the given securities are trading securities hence any unrealized gain or loss in respect of…
Q: During 2021, the first year of operations, Dejavu Company purchased the following equity securities:…
A: As per IFRS 9, a Financial instrument, the financial asset held for trading is measured at fair…
Q: On December 21, 2020, Martinez Company provided you with the following information regarding its…
A: Investment Cost Fair Value on Dec. 31, 2021 Unrealized Gain (Loss) Clemson Corp. Stock…
Q: Pompey Inc. carries the following marketable equity securities on its books at December 31, 2019 and…
A: Financial securities are those securities which are having the claim on the company. The shares are…
Q: On December 21, 2020, Pearl Company provided you with the following information regarding its equity…
A: Investment is described as the amount which is invested or expended to generate income or profits…
Q: During 2019, Mickey Mouse Company owns trading securities with Minnie Mouse Company. The cost of…
A: Answer: Particulars Amount in P Net Income in 2019 1500000 Adjustments Gain from X…
Q: Recording Entries for Equity Investment: FV-NI Adjust FVA at Year-End At December 31, 2019, the…
A: Step 1 Journal is the part of the book keeping.
Q: At the beginning of 2019, Able Company had the following portfolio of investments in trading…
A:
Q: The following investment portfolio of equity securities (all acquired during 2019) accounted for as…
A: Here discuss about the unrealized gain or loss arised from the equity securities which are traded in…
Q: DuPont Company has the following securities in its trading portfolio on December 31,2019. All…
A: Fair value adjustments: For investments in securities held in a portfolio, for changes in fair value…
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: be held as investments. The cost and market value of the Splendid Company purchased equity…
A: Trading securities are the investments made by an entity with an intention to make profits in the…
Q: Akers Company invests its excess cash in marketable securities. At the beginning of 2019, it had the…
A: Available-for-sale securities: When investments in securities are made to make profit in the short…
Q: Current Attempt in Progress At December 31, 2021, Ivanhoe Company has an equity portfolio valued at…
A: Answer: A Fair Value Adjustment a/c…
Q: Splish Brothers Inc. has the following securities in its portfolio of equity securities on December…
A: The question is based on the concept of Journal Entry.
Q: At the beginning of 2019, Ace Company had the following portfolio of investments in…
A: Unrealised gain or loss is the difference between fair value of securities as on reporting date and…
Q: Plotner Corporation has the following trading portfolio of stock investments as of December 31,…
A: Definition: Investment refers to the acquisition of asset to generate income. Investment can be…
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: 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: On April 1, 2019, Red Company purchased as a trading security a P1,000,000 face value 8% bond for…
A: PLEASE LKE THE ANSERS YOUR RESPONSE MATTERS Red Company has purchased the Trading Security @ P…
Q: At December 31, 2020, Bibis Co. had a stock portfolio valued at $270,000. Its cost was $324,000. If…
A: In the context of the given question, we are required to explain which journal entries are to be…
Q: Akers Company invests its excess cash in marketable securities. At the beginning of 2019, it had the…
A: Marketable securities are those assets that can be liquidated to cash quickly. These short-term…
Q: (Equity Securities Entries) McElroy Company has the following portfolio of investment securities at…
A: Calculate unrealized holding loss on September 30,2017 as follows Investment Cost Fair Value…
Q: On January 1, 2020, Zen Company acquired trading securities with the following market value on…
A: The trading securities are recorded on the fair value in the balance sheet. But the gain on such…
Q: what amount should Red report as Unrealized gain or loss from trading securities? (Do not include…
A: Red Company has purchased the Trading Security @ P 920,000 + 12000 + 20000(1000000*8%*3/12)(Accrued…
Q: Cullumber Company's equity securities portfolio which is appropriately included in current assets is…
A: Lets understand the basics. When equity instrument is purchased then at the end of year, it needs to…
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: At December 31, 2021, Blossom Company has an equity portfolio valued at $121000. Its cost was…
A: Fair Value Adjustment = = $121000 - $106000 - $6700 = 8,300
Q: Holly Company invests its excess cash in marketable securities. At the beginning of 2019, it had the…
A: 1.
Q: Recording and Reporting AFS Securities On December 31, 2020, Banff Company held an investment in…
A: Step 1 Hello. Since your question has multiple sub-parts, we will solve first three sub-parts for…
Q: For numbers 29 to 31 LABADA CO.'s portfolio of trading securities includes the following on December…
A: Trading securities are those types of securities which are held by the business to earn profit by…
Q: On December 21, 2020, Zurich Company provided you with the following information regarding its…
A: Compute the value of unrealized holding gain or loss:
Q: On April 1, 2019, Red Company purchased as a trading security a P1,000,000 face value 8% bond for…
A: Bonds can be defined the financial instrument in which is risk free investment avenue. It provides…
Q: Otto Corporation has the following trading portfolio of stock investments on December 31, 20XX.…
A: When ever portfolio is to be reported at fair value , then difference of profit or loss between cost…
Q: On December 21, 2020, Grouper Company provided you with the following information regarding its…
A: Grouper Company Journal Entries Particulars Amount (Dr)($) Amount(Cr)($) a. Unrealized…
Q: On its December 31, 2020 balance sheet, a company correctly reported a $342,000 credit balance in…
A: Answer Cost at 12/31/21 = $932,690 Fair value at 12/31/21 = $874,360
Q: On December 21, 2020, Buffalo Company provided you with the following information regarding its…
A: The question is based on the concept of Financial Accounting.
Q: Question: Akers Company invests its excess cash in marketable securities. At the beginning of 2019,…
A: Available for sale securities are reported at their fair value in the Balance sheet at the end of…
Q: The Gypsy Corporation has the following portfolio of investment securities (designated at fair value…
A: Unrealized Gains It is a theoretical benefit which exists on paper, coming about as a result of an…
Q: On December 1, 2021, the general ledger balance of Dolphin Inc.'s stock investment portfolio, which…
A: Fair value of investment on December 31 $3,12,600 Less: Cost of FV-NI Investment $2,84,900 Gain…
Q: At the beginning of 2019, Ace Company had the following portfolio of investments in…
A: Journal entries : Date Accounts title & Explanation Debit $ Credit $ May 3…
Q: Myrnam Co. has the following investments held for trading on December 31, 2021: Security Co. M…
A: a. Journal entry Unrealized loss 65000 To M common shares 25000 To P common shares…
Q: HOMEWORK (Equity Investments) Messi Holdings, Inc. had the following investment portfolio at January…
A: A journal entry is a form of accounting entry that is used to report a business transaction in a…
Q: On December 21, 2020, Sweet Company provided you with the following information regarding its equity…
A: Investment: It refers to the process of using the currently held excess cash to earn profitable…
Q: On January 1, 2020 Excellence Company made various investments in trading securities with the…
A: Trading securities indicates the investments made by the management in acquisition of other…
Q: During 2019, Mickey Mouse Company owns trading securities with Minnie Mouse Company. The cost of…
A: NI stands for Net Income which refers to the aggregate amount that the business earned in the time…
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…
Q: On December 21, 2020, Vaughn Company provided you with the following information regarding its…
A: Stock Cost Fair Value Unrealized Gain(loss) Clemson Corp. Stock $ 19,500 $…
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
- 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.Investments in Equity Securities Noonan Corporation prepares quarterly financial statements and invests its excess funds in marketable securities. At the end of 2018, Noonans portfolio of investments consisted of the following equity securities: Dunne the first half of 2019, Noonan engaged in the following investment transactions: Required: 1. Record Noonans investment transactions for January 6 through June 30, 2019. 2. Show the items of income or loss from investment transactions that Noonan reports for each of the first and second quarters of 2019. 3. Show how the preceding items are reported on the first and second quarter 2019 ending balance sheets, assuming that management expects to dispose of the Keene and Sachs securities within the next year.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
- Plotner Corporation has the following trading portfolio of stock investments as of December 31, 2019. Security Cost Fair Value A $19,000 $15,000 B 22,000 27,000 C 34,000 29,000 $75,000 $71,000 On January 22, 2020, Plotner Corporation sold security C for $32,000. Instructions (a) Prepare the adjusting entry for Plotner Corporation on December 31, 2019, to report the portfolio at fair value. (b) Indicate the balance sheet and income statement presentation of the fair value data for Plotner Corporation at December 31, 2019. (c) Prepare the journal entry for the 2020 sale.On December 1, 2021, the general ledger balance of Dolphin Inc.'s stock investment portfolio, which is classified as fair value through net income (FV-NI) is $284,900. On December 31, the controller determines that the fair value of this portfolio should be $312,600. The adjusting entry for the portfolio will include: Question 10 options: DR FV-NI investments $27,700 CR Cash FV-NI investments $27,700 CR FV-NI investments $27,700 DR Gain on investments $27,700At 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.
- 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 AnswerAt December 31, 2021, Blossom Company has an equity portfolio valued at $121000. Its cost was $106000. If the Securities Fair Value Adjustment has a debit balance of $6700, which of the following journal entries is required at December 31, 2021?At the beginning of 2019, Ace Company had the following portfolio of investments in available-for-sale debt securities (all of which were acquired at par value): Security Cost Fair Value (1/1/2019) A $20,000 $24,000 B $30,000 $31,500 Totals $50,000 $55,500 During 2019, the following transactions occurred: May 3 Purchased C debt securities at their par value for $50,000. July 1 Sold all of the A securities for $24,000 plus interest of $1,500. Dec. 31 Received interest of $7,600 on the B and C securities. Additionally the following information was available: Security Fair Value (12/31/2019) B $31,250 C $52,500 Question Journal entries for…
- In 2019, Mickey Mouse Company purchased trading securities for P2,000,000. In the year ending 2019, Mickey Mouse recognized unrealized gain of 300,000.Below is the composition of the composition of the portfolio of trading securities in December 2020. security cost market a 400,000 700,000 b 850,000 1,000,000 c 750,000 500,000 What amount of unrealized gain or loss should be reported by Mickey Mouse Company in the year 2020?At the beginning of 2019, Ace Company had the following portfolio of investments in available-for-sale debt securities (all of which were acquired at par value): Security Cost Fair Value (1/1/2019) A $20,000 $24,000 B $30,000 $31,500 Totals $50,000 $55,500 During 2019, the following transactions occurred: May 3 Purchased C debt securities at their par value for $50,000. July 1 Sold all of the A securities for $24,000 plus interest of $1,500. Dec. 31 Received interest of $7,600 on the B and C securities. Additionally the following information was available: Security Fair Value (12/31/2019) B $31,250 C $52,500 Question What is the balance…At the beginning of 2019, Able Company had the following portfolio of investments in trading securities (all of which were acquired at par value): Security Cost 1/1/2019 Fair Value A $20,000 $25,000 B 30,000 29,000 Totals $50,000 $54,000 During 2019, the following transactions occurred: May 3 Purchased C debt securities at their par value for $50,000. July 1 Sold all of the A securities for $27,000 plus interest of $1,000. Dec. 31 Received interest of $7,600 on the B and C securities. Additionally the following information was available: 12/31/2019 Security Fair Value B $29,000 C 52,500 Required: 1. Prepare journal entries to record the preceding information.