For which of the following investments will unrealized holding
gains or losses be included in net...
For which of the following investments will unrealized holding
gains or losses be included in net income? Please enter the number
(i.e., 1, 2, 3, or 4) representing the correct answer in the
blank.
1. held-to-maturity equity investments.
2. available-for-sale debt investments.
3. available-for-sale equity investments.
4. trading equity investments.
Escanaba has a portfolio of marketable debt securities that it
might sell, but has no plans...
Escanaba has a portfolio of marketable debt securities that it
might sell, but has no plans to do so. How should Escanaba classify
these securities, and how should it report unrealized gains and
losses from these securities?
Select one:
a. Trading; Component of income from operations
b. Available-for-Sale; Component of income from operations
c. Trading; Separate component of other comprehensive income
d. Held-to-Maturity; Component of income from operations
e. Available-for-Sale; Separate component of other comprehensive
income
For investments in debt...
Interpreting Disclosures of Available-for-Sale
Securities
Use the following year-end footnote information from Cisco Systems,
Inc.'s 10-K...
Interpreting Disclosures of Available-for-Sale
Securities
Use the following year-end footnote information from Cisco Systems,
Inc.'s 10-K report to answer parts a and b.
($ millions)
2014
Cost of available-for-sale investments securities
$43,385
Gross unrealized gains
748
Gross unrealized losses
(31)
Fair value of available-for-sale investments securities
$44,102
a. At what amount is its available-for-sale investments reported
on Cisco's 2014 balance sheet?
$Answer million
b. How is its net unrealized gain of $729 million ($759 million
- $30 million) reported by...
Syracuse, Inc., reports the following
details of its passive investments in marketable equity securities
in its...
Syracuse, Inc., reports the following
details of its passive investments in marketable equity securities
in its 2017 annual report:
Syracuse, Inc., reports the following
details of its passive investments in marketable equity securities
in its 2017 annual report:
($ thousands)
2017
2016
Cost of marketable equity securities
$102,907
$83,849
Gross unrealized gains
3,602
1,694
Gross unrealized losses
(1,198)
(2,434)
a. What amount appeared on Syracuse’s
balance sheet in 2017 for its marketable equity securities?
b. Calculate the net unrealized gains...
You are working for The Wellington Company on temporary
assignment while one of the accountants is...
You are working for The Wellington Company on temporary
assignment while one of the accountants is on family leave. You
have been asked to review the company’s investment journal entries
and provide necessary information to the accountant preparing the
financial statements.
PAGE 8
JOURNAL
ACCOUNTING EQUATION
DATE
DESCRIPTION
POST. REF.
DEBIT
CREDIT
ASSETS
LIABILITIES
EQUITY
1
Jan. 17
Investments-Red Rock Co. Stock
40,700.00
?
2
Cash
40,700.00
?
3
Feb. 5
Investments-Sunset Village Bonds
37,000.00
?
4
Interest Receivable
320.00...
Required information
[The following information applies to the questions
displayed below.]
On October 12, 2017, Neptune...
Required information
[The following information applies to the questions
displayed below.]
On October 12, 2017, Neptune Corporation invested $700,000 in
short-term available-for-sale marketable securities. The market
value of this investment was $730,000 at December 31, 2017, but had
slipped to $725,000 by December 31, 2018.
Assuming Neptune does not sell this investment, the financial
statements prepared at December 31, 2018 will report:
Multiple Choice
A. The asset Investments in Marketable Securities of $725,000,
and a $5,000 Unrealized Holding Loss deducted...
At December 31, 2018, Hull-Meyers Corp. had the following
investments that were purchased during 2018, its...
At December 31, 2018, Hull-Meyers Corp. had the following
investments that were purchased during 2018, its first year of
operations:
Cost
Fair Value
Trading Securities:
Security A
$
905,000
$
915,500
Security B
110,000
104,900
Totals
$
1,015,000
$
1,020,400
Securities
Available-for-Sale:
Security C
$
705,000
$
784,500
Security D
905,000
920,200
Totals
$
1,610,000
$
1,704,700
Securities to Be
Held-to-Maturity:
Security E
$
495,000
$
505,200
Security F
620,000
614,900
Totals
$
1,115,000
$
1,120,100
No investments were sold...
The following data pertain to Tyne Company’s investments in
marketable equity securities. (Assume that all securities...
The following data pertain to Tyne Company’s investments in
marketable equity securities. (Assume that all securities were held
throughout 2019 and 2020.) Note that the new FASB guidance on
accounting for minority-passive investments is effective beginning
in 2018. Under the prior rules, Alpha was a trading security and
Beta was an available-for-sale security. Beta’s fair value at
12/31/17 was $135,000.
Fair value
Cost
12/31/20
12/31/19
Alpha Co.
$
150,000
$
155,000
$
100,000
Beta Co.
150,000
130,000
120,000
Required:
What...
On its December 31, 2008 balance sheet, the Noble Corporation
reported the following as investments in...
On its December 31, 2008 balance sheet, the Noble Corporation
reported the following as investments in long-term marketable
equity securities. Investment in long-term marketable equity
securities at market $300,000 Less Adjustment to reflect decline in
market value of marketable equity securities 28,000 At December 31,
2009, the market valuation of the portfolio was $298,000. Noble
does not elect to use the fair value option of reporting financial
assets. What should Noble report on its 2009 Statement of Income as
a...