Problem 15-7 (ACPChaplain Company was very active in acquiring and sellinginvestments in equity securities. Data regarding thesecurities are:CostMarket valueDecember 31, 2020Trading securitiesSecurities not held for trading5,000,0003.000.0008,000,0004,600,000 (40m3,100,000 00,N00,000 (30December 31, 20215,500,000 503,300,000 308800000The entity made an irrevocable election to present changesin fair value of the securities not held for trading in other5,000,0003,000,000,000,000Trading securitiesSecurities not held for tradingcomprehensive income.Required:Prepare journal entries to recognize the changes in marketvalue for 2020 and 2021.

IFRS 9 is the governing standard for the presentation of equity instruments in the financial…

Answered: Required: Prepare journal entries to…

Business

Accounting

Required: Prepare journal entries to recognize the changes in market value for 2020 and 2021.

Financial Accounting Intro Concepts Meth/Uses

14th Edition

ISBN:9781285595047

Author:Weil

Publisher:Weil

Chapter13: Marketable Securities And Derivatives

Section: Chapter Questions

Problem 20E

See similar textbooks

Similar questions

Problem 15-11 (AICPA Adapted) At the beginning of current year, Manifold Company began operations. The following information related to the portfolio of equity securities held for trading at year-end: Trading Nontrading Aggregate cost Aggregate fair value Aggregate lower of cost or market value applied to each security in the portfolio 360,000 320,000 550,000 450,000 304,000 420,000 The nontrading investments are measured at fair value through other comprehensive income. What amount should be reported as unrealized loss in the income statement for the current year? 140,000 b. a. 186,000 40,000 56,000 с. d.
Problem 15-7 (ACP) Chaplain Company was very active in acquiring and selling investments in equity securities. Data regarding the securities are: Cost Market value December 31, 2020 Trading securities Securities not held for trading 5,000,000 3,000,000 4,600,000 3,100,000 December 31, 2021 Trading securities Securities not held for trading 5,000,000 3,000,000 5,500,000 3,300,000 The entity made an irrevocable 'election to present changes in fair value of the securities not held for trading in other comprehensive income. Required: Prepare journal entries to recognize the changes in market value for 2020 and 2021.
Paul Company presented the following information pertaining to its investments in equity securities. FVPL FVOCICost P1,000,000 P1,000,000Market value December 31, 2020 1,050,000 980,000 December 31, 2019 950,000 920,000 2.What amount should Paul report as unrealized gains/losses in the shareholders' equity of its December 31, 2020 statement of financial position?
Cullumber Company's equity securities portfolio which is appropriately included in current assets is as follows: Catlett Corp. Lyman, Inc. O O $-7440. O $-20400. O $0. O $-130740. December 31, 2021 Cost O $23000 loss. O $14000 loss. - $0. O $9000 gain. $150000 Cash $296000 146000 Cash Ignoring income taxes, what amount should be reported as a charge against income in Cullumber's 2021 income statement if 2021 is Cullumber's first year of operation? Debt Investments Premium on Bonds Cash Current Attempt in Progress Sunland Company purchased $2700000 of 9%, 5-year bonds from Cheyenne, Inc. on January 1, 2021, with interest payable on July 1 and January 1. The bonds sold for $2830740 at an effective interest rate of 8%. Using the effective-interest method, Sunland Company decreased the Available-for-Sale Debt Securities account for the Cheyenne, Inc. bonds on July 1, 2021 and December 31, 2021 by the amortized premiums of $10020 and $10380, respectively. Debt Investments Eair Value $127000…
29. M Company began operations on January 1, 2013. The following information pertains to the portfolio of equity securities classified as held for trading on December 31, 2013: Aggregate cost Aggregate market value Aggregate lower of cost or market value applied to each security 360,000 320,000 300,000 What amount should be reported as unrealized loss in the income statement for 2013? a. 40,000 b. 60,000 c. 20,000 d. 0
Problem 12-9 (Algo) Securities held-to-maturity; trading securities and equity investments [LO12-1, 12-2, 12-3, 12-5] Amalgamated General Corporation is a consulting firm that also offers financial services through its credit division. From time to time the company buys and sells securities. The following selected transactions relate to Amalgamated’s investment activities during the last quarter of 2021 and the first month of 2022. The only securities held by Amalgamated at October 1, 2021 were $62 million of 10% bonds of Kansas Abstractors, Inc., purchased on May 1, 2021 at face value and held in Amalgamated’s trading securities portfolio. The company’s fiscal year ends on December 31. 2021 Oct. 18 Purchased 2 million shares of Millwork Ventures Company common stock for $63 million. Millwork has a total of 62 million shares issued. 31 Received semiannual interest of $3.1 million from the Kansas Abstractors bonds. Nov. 1 Purchased 10% bonds of Holistic…
Problem 12-9 (Algo) Securities held-to-maturity; trading securities and equity investments [LO12-1, 12-2, 12-3, 12-5] Amalgamated General Corporation is a consulting firm that also offers financial services through its credit division. From time to time the company buys and sells securities. The following selected transactions relate to Amalgamated’s investment activities during the last quarter of 2021 and the first month of 2022. The only securities held by Amalgamated at October 1, 2021 were $48 million of 10% bonds of Kansas Abstractors, Inc., purchased on May 1, 2021 at face value and held in Amalgamated’s trading securities portfolio. The company’s fiscal year ends on December 31. 2021 Oct. 18 Purchased 2 million shares of Millwork Ventures Company common stock for $79 million. Millwork has a total of 48 million shares issued. 31 Received semiannual interest of $2.4 million from the Kansas Abstractors bonds. Nov. 1 Purchased 10% bonds of Holistic Entertainment Enterprises at…
Question 6: Myrnam Co. has the following investments held for trading on December 31, 2021: Carrying Value 185,000 125,000 230,000 540,000 Fair Value Category FVTPL Security Co. M common shares Co. N preferred shares Co. P common shares 160,000 140,000 190,000 490,000 FVTPL FVTOCI Total Instructions: a. Prepare the adjusting entries required at December 31 to report the above investments at fair value. b. Show the financial statement presentation of the investments and holding gains and losses that result from fair value adjustments at December 31, 2021. (Ignore income tax.) c. Assuming that on April 25, 2022, Myrnam sold Co. M common shares for $160,000, Co. N preferred shares for $135,000, and Co P common shares for $200,000, prepare the journal entries required to record these transactions. Round amounts to the nearest dollar. Show ALL calculations
39. D On January 1, 2019, Caraga Company purchased equity securities to be held as financial assets measured at fair value through other comprehensive income. Market – 12/31/19 3,200,000 3,500,000 4,600,000 Market 12/31/2020 Security R Security S Security T Cost 3,000,000 4,000,000 5,000,000 3,700,000 4,700,000 On January 31, 2020, the entity sold Security R for P3,500,000. What amount should be recognized directly in retained earnings of as a result of the sale of investment in 2020? a. 500,000 b. 300,000 c. 200,000 d. 0
Question 30 At December 31, 2017, Gregson Inc. has these data on its security investments: Security Cost Fair Value 12/31/17 Trading $ 280,000 $344,000 Non-trading 274,000 250,000 If the non-trading securities are held as long-term investments, which of the following will be recorded to adjust the securities to fair value? Oa. Fair Value Adjustment-Trading.. 64,000 Unrealized Gain-Income... 64,000 Unrealized Gain or Loss-Equity...... 24,000 Fair Value Adjustment-Non-Trading.. 24,000 24,000 Unrealized Gain-Income.. Ob. Unrealized Loss-Income. Securities... Oc. Securities Ⓒd. Unrealized Gain-Income.... Unrealized Gain-Income... Fair Value Adjustment-Trading.. Fair Value Adjustment-Non-Trading.. Unrealized Gain or Loss-Equity.... 40,000 40,000 4,000 28,000 64,000 64,000 24,000 24,000
Exercise 18-9 (Algo) New equity issues; offerings announcements [LO18-4] W When companies offer new equity security issues, they publicize the offerings in the financial press and on Internet sites. Assume the following were among the equity offerings reported in December 2024: New Securities Issues Equity American Materials Transfer Corporation (AMTC)-8.0 million common shares, $0.001 par, priced at $14.816 each through underwriters led by Second Tennessee Bank N.A. and Morgan, Dunavant & Company, according to a syndicate official. Proactive Solutions Incorporated (PSI)-Offering of 9 million common shares, $0.01 par, was priced at $16.60 a share via lead manager Stanley Brothers, Incorporated, according to a syndicate official. Required: Prepare the appropriate journal entries to record the sale of both issues to underwriters. Ignore share issue costs. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your…
Reference is made to the 2022 Balance Sheet of Tran-Ropes limited. Tram-Ropes Limited Balance Sheet 2022 Cash Acc. Receivable Marketable securities Inventories Fixed Assets Total Assets 1,000,000.00 ii. 12,000,000.00 3,000,000.00 7,500,000.00 26,500,000.00 50,000,000,00 Accounts Payable Notes Payable Long-term Debt Common stock Preferred Stock Total Liabilities and Equity 8,000,000.00 8,500,000.00 20,000,000.00 7,500,000.00 6,000,000.00 50,000,000.00 Additional Information: 1. The Long-Term debt consists of 8% annual coupon bonds, with 15 years to maturity and are currently selling for 95% of par. The company's common shares which have a book value of $20 per share are currently selling at $25 per share. iii. iv. V. Preferred shares have a book value of $100 per share. These shares are currently selling at $120 per share and pays dividends of 6% per annum on book value. The dividend growth rate is expected to be 3%, and dividend for 2823 is projected to be $5.00 per share. The…