Urmilaben Selected accounts from GermX Company's adjusted trial balance for the year ended December 31 follow.Trading securities (at cost)$ 18,500(2,700)10,50021,500 Fair value adjustment-trading2,20031,500 Fair value adjustment-stock78,500 Accounts receivable$ 8,400 CashShort-term stock investments (at cost)Equity method investmentsHeld-to-maturity securities (long-term)Prepare the assets section of a classified balance sheet. Hint. Fair Value Adjustment-Trading increases trading securities; Fair ValueAdjustment-Stock decreases stock investments.Note: Amounts deducted should be indicated by a minus sign.Current assetsCashTotal current assetsLong-term InvestmentsGERMX COMPANYAssets Section of Balance SheetDecember 31Assets000

Step 1: The Meaning of Assets.Assets are something owned by the company. Assets include current…

Answered: Selected accounts from GermX Company's…

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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Selected accounts from GermX Company's adjusted trial balance for the year ended December 31 follow. Trading securities (at cost) $5,200 Cash Short-term stock investments (at cost) Equity method investments $ 10,500 (1,100) 23,500 Fair value adjustment-stock 70,500 Accounts receivable 2,500 Held-to-maturity securities (long-term) 13,500 Fair value adjustment-trading 600 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
Indicate where each of the following items 1 through 5 is reported on financial statements. 1. Unrealized gain on available-for-sale securities 2. Held-to-maturity securities (due in 15 years) 3. Loss on sale of debt indestments 4. Fair Value Adjustment-Stock (Short term) 5. Unrealized gain on trading securities Equity
Ticker Services began operations in Year 1 and holds long-term investments in available-for-sale debt securities. The year-end cost and fair values for its portfolio of these investments follow. Portfolio of Available-for-Sale Securities December 31, Year 1 December 31, Year 2 December 31, Year 3 December 31, Year 4 View transaction list View journal entry worksheet Prepare journal entries to record each year-end fair value adjustment for these securities. No 3 Cost $11,000 18,900 20,600 14,800 Date Dec. 31, Year 3 No Transaction Recorded Fair Value $17,500 28,000 30, 200 19,700 General Journal Debit Credit Ⓒ
Pharoah Company has these data at December 31, 2022, the end of its first year of operations. Debt Securities Trading Available-for-sale (a) Cost $119,700 100,300 The available-for-sale securities are held as a long-term investment. Fair Value $125,700 98,300 Prepare the adjusting entries to report: (1) Trading securities at fair value and (2) Available-for-sale securities at fair value. (List all debit entries before credit entries. 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.) No. Account Titles and Explanation (1) Debit Credit
Current Attempt in Progress Oriole Company has these data at December 31, 2022, the end of its first year of operations. Debt Securities Trading Available-for-sale (a) Cost $120,900 (1) 100,400 The available-for-sale securities are held as a long-term investment. (2) Fair Value $125,900 98,400 Prepare the adjusting entries to report: (1) Trading securities at fair value and (2) Available-for-sale securities at fair value. (List all debit entries before credit entries. 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.) No. Account Titles and Explanation Debit Credit
At December 31, 2022, the trading debt securities for Sheridan, Inc. are as follows. Security A (a) B C Cost $17,800 12,000 Dec. 31 22,900 $52,700 Fair Value $16,300 13,600 19,400 $49,300 Prepare the adjusting entry at December 31, 2022, to report the securities at fair value. (List all debit entries before credit er Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No- for the account titles and enter O for the amounts.) Date Account Titles and Explanation Debit Credit
On January 1, Valuation Allowance for Trading The balance sheet caption used to report temporary or long-term investments in stocks or bonds held as either trading, available-for-sale, held-to-maturity or equity method securities. Investments had a zero balance. On December 31, the cost of the trading securities portfolio was $66,800, and the fair value was $68,000. Prepare the December 31 adjusting journal entry to record the Changes in the fair value of equity or debt securities for a period.unrealized gain or loss on trading investments. Dec. 31
Classifying Investments in Securities Match each security listed below with its usual classification: (1) trading securities, (2) available-for-sale securities, (3) equity method securities, (4) held-to-maturity securities, or (5) equity securities measured at FV-NI. a. Abbot common stock, no-par; acquired to use temporarily idle cash with intent to sell next month. b. 30% interest in Packaging Inc.; acquired to drive costs down through vertical integration. c. Mack stock held in trading account. d. Hasten Inc.'s 10-year bonds acquired. Hasten intends to hold to maturity, but may need to sell the bonds earlier for cash. e. Staufer common stock, par $5; acquired to gain a significant influence, but not control. f. Frazer bonds, 9% mature at the end of 10 years; acquired with the intent and ability to hold for 10 years. g. Foreign Corp. common stock; a 30% interest acquired, but difficulties encountered in an attempt to obtain representation on the Foreign…
Cost and fair value data for the trading debt securities of Ivanhoe Company at December 31, 2022, are $64,220 and $63,810, respectively. (a1) Show the financial statement presentation of the trading securities. Ivanhoe Company (Partial) Balance Sheet A
Prepare adjusting entry using fair value. BEH.4 (LO 3), AP Cost and fair value data for the trading debt securities of Lecler Company at December 31, 2022, are $62,000 and $59,600, respectively. Prepare the adjusting entry to record the securities at fair value. Indicate statement presentation using fair value.
Windsor Company has the following data at December 31, 2020 for its debt securities: Securities Cost Fair Value Available-for-sale $44,200 $50,700 Trading 59,800 54,600 Journalize the December 31 adjusting entries. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. List debit entry before credit entry.) Date Account Titles and Explanation Dec. 31 Debit Credit Dec. 31 (To record fair value adjustment for available-for-sale investment) (To record fair value adjustment for trading investment)
Debt investment transactions, available-for-sale valuationSoto Industries Inc. in an athletic foot ware company that beganoperations on January 1, Year 1. The following transactions relate to debtinvestments acquired by Solo Industries Inc., which has a fiscal yearending on December 31: Instructions1. Journalize the entries to record these transactions.2. If the bond portfolio is classified as available for sale, what impactwould this have on financial statement disclosure?

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