Rolling Hills Productions held investments in equity securities (in Elban Company)with a fair value of $75,000 at December 31, 2018. These investments cost Rolling HillsProductions $68,000 on January 1, 2018. What is the appropriate amount for Rolling HillsProductions to report for these investments on its December 31, 2018, balance sheet?(Assume that Rolling Hills has insignificant influence over Elban Company.)a. $68,000b. A $7,000 gainc. $75,000d. Cannot be determined from the data given
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Rolling Hills Productions held investments in equity securities (in Elban Company)
with a fair value of $75,000 at December 31, 2018. These investments cost Rolling Hills
Productions $68,000 on January 1, 2018. What is the appropriate amount for Rolling Hills
Productions to report for these investments on its December 31, 2018, balance sheet?
(Assume that Rolling Hills has insignificant influence over Elban Company.)
a. $68,000
b. A $7,000 gain
c. $75,000
d. Cannot be determined from the data given
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- On January 1, 2018 Alexes Company purchased market marketable equity securities to be held as trading for 5 000 000. The entity also paid transaction cost amounting to P 200 000. The securities had a market value of 5 500 000 on December 31, 2018 and the transaction cost that would be incurred on sale is estimated at 100 000. No securities were sold in 2018. What amount of unrealized gain or loss on these securities should be reported in the 2018 income statement?Riverbed Company has the following investments as of December 31, 2020: ● Investment in common stock of Piedmont Company $738,000 ● Investment in debt securities of Touchdown Company $1,145,000 The carrying value and the fair value of these two investments are the same at December 31, 2020. Riverbed’s stock investment does not result in significant influence on the operations of Piedmont Company. Riverbed’s debt investment is considered held-to-maturity.At December 31, 2021, the shares in Piedmont Company are valued at $487,000; the debt investment securities of Touchdown are valued at $668,000. Assume that these investments are considered impaired. Prepare the journal entries to record the impairment of these two securities at December 31, 2018. (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 0 for the amounts.) Account Titles…Sweet Company has the following investments as of December 31, 2020: Investments in common stock of Laser Company $1,460,000 Investment in debt securities of FourSquare Company $3,230,000 In both investments, the carrying value and the fair value of these two investments are the same at December 31, 2020. Sweet’s stock investments does not result in significant influence on the operations of Laser Company. Sweet’s debt investment is considered held-to-maturity. At December 31, 2021, the shares in Laser Company are valued at $1,060,000; the debt investment securities of FourSquare are valued at $2,430,000 and are considered impaired. Prepare the journal entry to record the impairment of the debt securities at December 31, 2021.
- Novak Company has the following investments as of December 31, 2020: Investments in common stock of Laser Company $1,350,000 Investment in debt securities of FourSquare Company $3,280,000 In both investments, the carrying value and the fair value of these two investments are the same at December 31, 2020. Novak’s stock investments does not result in significant influence on the operations of Laser Company. Novak’s debt investment is considered held-to-maturity. At December 31, 2021, the shares in Laser Company are valued at $950,000; the debt investment securities of FourSquare are valued at $2,460,000 and are considered impaired. PLEASE HELP WITH THE ENTRY THANK YOU.Novak Company has the following investments as of December 31, 2020: Investments in common stock of Laser Company $1,350,000 Investment in debt securities of FourSquare Company $3,280,000 In both investments, the carrying value and the fair value of these two investments are the same at December 31, 2020. Novak’s stock investments does not result in significant influence on the operations of Laser Company. Novak’s debt investment is considered held-to-maturity. At December 31, 2021, the shares in Laser Company are valued at $950,000; the debt investment securities of FourSquare are valued at $2,460,000 and are considered impaired. LIST OF ACCOUNTS Accumulated Other Comprehensive Loss Allowance for Doubtful Accounts Allowance to Reduce Inventory to Market Bad Debt Expense Bonds Payable Cash Call Option Common Stock Cost of Goods Sold Debt Investments Dividend Revenue Dividend Receivable Equity Investments Fair Value Adjustment Futures Contract Gain on Sale of Investments…Novak Company has the following investments as of December 31, 2020: Investments in common stock of Laser Company $1,350,000 Investment in debt securities of FourSquare Company $3,280,000 In both investments, the carrying value and the fair value of these two investments are the same at December 31, 2020. Novak’s stock investments does not result in significant influence on the operations of Laser Company. Novak’s debt investment is considered held-to-maturity. At December 31, 2021, the shares in Laser Company are valued at $950,000; the debt investment securities of FourSquare are valued at $2,460,000 and are considered impaired. (a) Prepare the journal entry to record the impairment of the debt securities at December 31, 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 0 for the amounts.) Date Account Titles and…
- Ayayai Company has the following investments as of December 31, 2020: Investments in common stock of Laser Company $1,380,000 Investment in debt securities of FourSquare Company $3,530,000 In both investments, the carrying value and the fair value of these two investments are the same at December 31, 2020. Ayayai’s stock investments does not result in significant influence on the operations of Laser Company. Ayayai’s debt investment is considered held-to-maturity. At December 31, 2021, the shares in Laser Company are valued at $1,020,000; the debt investment securities of FourSquare are valued at $2,780,000 and are considered impaired. 1. Prepare the journal entry to record the impairment of the debt securities at December 31, 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 0 for the amounts.) 2. Assuming the fair value of the Laser shares is…weet Company has the following investments as of December 31, 2020: Investments in common stock of Laser Company $1,460,000 Investment in debt securities of FourSquare Company $3,230,000 In both investments, the carrying value and the fair value of these two investments are the same at December 31, 2020. Sweet’s stock investments does not result in significant influence on the operations of Laser Company. Sweet’s debt investment is considered held-to-maturity. At December 31, 2021, the shares in Laser Company are valued at $1,060,000; the debt investment securities of FourSquare are valued at $2,430,000 and are considered impaired. Assume that the debt investment in FourSquare Company was available-for-sale and the expected credit loss was $890,000. Prepare the journal entry to record this impairment on December 31, 2021Loreal-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?
- On its December 31, 2020, balance sheet, Trump Company reported its investment in equity securities, which had cost $600,000, at fair value of $560, 000. At December 31, 2021, the fair value of the securities was $585, 000. What should Trump report on its 2021 income statement as a result of the increase in fair value of the investments in 2021? a. 50. b. Unrealized loss of $15,000. c. Realized gain of $25, 000. d. Unrealized gain of $25,000.On its December 31, 2024, balance sheet, Sandhill Company reported its investment in equity securities, which cost $690000, at fair value of $618000. At December 31, 2025, the fair value of the securities was $649000. What should Sandhill report on its 2025 income statement as a result of the increase in fair value of the investments in 2025? O Realized gain of $31000 O Unrealized gain of $31000 O Unrealized loss of $41000 O $0Beresford 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?