Selected accounts from GermX Company's adjusted trial balance for the year ended December 31 follow.Trading securities (at cost)$5,200 CashShort-term stock investments (at cost)Equity method investments$ 10,500(1,100)23,500 Fair value adjustment-stock70,500 Accounts receivable2,500Held-to-maturity securities (long-term)13,500 Fair value adjustment-trading600Prepare the assets section of a classified balance sheet. Hint. Fair Value Adjustment-Trading increases trading securities; Fair ValueAdjustment-Stock decreases stock investments. (Amounts deducted should be indicated by a minus sign.)Current assetsTotal current assetsLong-term InvestmentsGERMX COMPANYAssets Section of Balance SheetDecember 31AssetsTotal long-term investmentsTotal assets

Workings :- 1) Calculation of carrying value of trading securities :- Trading securities (at cost) +…

Selected accounts from GermX Company's adjusted trial balance for the year ended December 31 follow. $5,200 Cash 23,500 Fair value adjustment-stock 70,500 Accounts receivable $ 10,500 (1,100) 2,500 13,500 Fair value adjustment-trading 600 Trading securities (at cost) Short-term stock investments (at cost) Equity method investments Held-to-maturity securities (long-term) Prepare the assets section of a classified balance sheet. Hint. Fair Value Adjustment-Trading increases trading securities; Fair Value Adjustment-Stock decreases stock investments. (Amounts deducted should be indicated by a minus sign.) Current assets Total current assets Long-term Investments GERMX COMPANY Assets Section of Balance Sheet December 31 Assets Total long-term investments Total assets

Selected accounts from GermX Company's adjusted trial balance for the year ended December 31 follow. $5,200 Cash 23,500 Fair value adjustment-stock 70,500 Accounts receivable $ 10,500 (1,100) 2,500 13,500 Fair value adjustment-trading 600 Trading securities (at cost) Short-term stock investments (at cost) Equity method investments Held-to-maturity securities (long-term) Prepare the assets section of a classified balance sheet. Hint. Fair Value Adjustment-Trading increases trading securities; Fair Value Adjustment-Stock decreases stock investments. (Amounts deducted should be indicated by a minus sign.) Current assets Total current assets Long-term Investments GERMX COMPANY Assets Section of Balance Sheet December 31 Assets Total long-term investments Total assets

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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