Question

11. Smith buys and sells securities. On December 15, 2018, Smith purchased $526,000 of Jones shares...

11. Smith buys and sells securities. On December 15, 2018, Smith purchased $526,000 of Jones shares and elected the fair value option to account for the Jones investment. As of December 31, 2018, the Jones shares had a fair value of $585,000. In the 2018 financial statements, Smith will report (ignore taxes): Multiple Choice Accumulated other comprehensive income of $585,000. Investment income of $59,000 in its income statement. An investment in Jones of $526,000. Other comprehensive income of $59,000.

Homework Answers

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
S&L Financial buys and sells securities which it classifies as available-for-sale. On December 27, 2018, S&L...
S&L Financial buys and sells securities which it classifies as available-for-sale. On December 27, 2018, S&L purchased Coca-Cola bonds at par for $884,000 and sold the bonds on January 3, 2019, for $890,000. At December 31, the bonds had a fair value of $881,000, and S&L has the intent and ability to hold the investment until fair value recovers. Prepare journal entries to record (a) any unrealized gains or losses occurring in 2018 and (b) the sale of the bonds...
James Corp. buys and sells debt securities which it classifies as available-for-sale securities. The company's fiscal...
James Corp. buys and sells debt securities which it classifies as available-for-sale securities. The company's fiscal year ends on Dec. 31. On Dec. 27,2021, James purchased Northwest Communications bonds at par for $1,000. At Dec. 31, the bonds had a fair value of $1200. On Jan. 3, 2022, the bonds were sold for $3000. The amount included in 2022 Jame's other comprehensive income as a result of this investment would be?
S&L Financial buys and sells securities which it classifies as available-for-sale. On December 27, 2018, S&L...
S&L Financial buys and sells securities which it classifies as available-for-sale. On December 27, 2018, S&L purchased Coca-Cola bonds at par for $900,000 and sold the bonds on January 3, 2019, for $908,500. At December 31, the bonds had a fair value of $893,000, and S&L has the intent and ability to hold the investment until fair value recovers. Prepare journal entries to record (a) any unrealized gains or losses occurring in 2018 and (b) the sale of the bonds...
S&L Financial buys and sells securities which it classifies as available-for-sale. On December 27, 2018, S&L...
S&L Financial buys and sells securities which it classifies as available-for-sale. On December 27, 2018, S&L purchased Coca-Cola bonds at par for $892,000 and sold the bonds on January 3, 2019, for $900,000. At December 31, the bonds had a fair value of $885,000, and S&L has the intent and ability to hold the investment until fair value recovers. Prepare journal entries to record (a) any unrealized gains or losses occurring in 2018 and (b) the sale of the bonds...
S&L Financial buys and sells securities which it classifies as available-for-sale. On December 27, 2018, S&L...
S&L Financial buys and sells securities which it classifies as available-for-sale. On December 27, 2018, S&L purchased Coca-Cola bonds at par for $892,000 and sold the bonds on January 3, 2019, for $900,000. At December 31, the bonds had a fair value of $885,000, and S&L has the intent and ability to hold the investment until fair value recovers. Prepare journal entries to record (a) any unrealized gains or losses occurring in 2018 and (b) the sale of the bonds...
S&L Financial buys and sells securities which it classifies as available-for-sale. On December 27, 2018, S&L...
S&L Financial buys and sells securities which it classifies as available-for-sale. On December 27, 2018, S&L purchased Coca-Cola bonds at par for $894,000 and sold the bonds on January 3, 2019, for $901,500. At December 31, the bonds had a fair value of $890,000, and S&L has the intent and ability to hold the investment until fair value recovers. Prepare journal entries to record (a) any unrealized gains or losses occurring in 2018 and (b) the sale of the bonds...
Beresford Inc. purchased several investments in debt securities during 2020, its first year of operations. The...
Beresford 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 Securities: Fair Value 12/31/2020 Fair Value 12/31/2021 Amortized Cost 12/31/2020 Amortized Cost 12/31/2021 ABC Co. Bonds $ 389,000 $ 414,000 $ 381,500 $ 374,000 Trading Securities: Fair Value 12/31/2020 Fair Value 12/31/2021 Cost DEF Co. Bonds $ 59,000 $ 70,000 $ 75,400 GEH Inc. Bonds $ 61,000...
On December 31, 2018, HCTLA, Co. reported its investment in available-for-sale securities at $2,394,000, it's fair...
On December 31, 2018, HCTLA, Co. reported its investment in available-for-sale securities at $2,394,000, it's fair value on that day. The portfolio originally cost $2,176,000. On December 31, 2019, the fair value of the securities was $2,155,000 What will HCTLA, Co. report on its 2019 income statement as a result of the change in fair value during the year? (NIE 2) ($239,000) ($21,000) $218,000 Nothing. This adjustment would be reported as Other Comprehensive Income. 5 points    QUESTION 17 (5...
1.) Axel Company buys and sells securities expecting to earn profits on short-term differences in price....
1.) Axel Company buys and sells securities expecting to earn profits on short-term differences in price. During 2016, Axel Company purchased the following trading securities: Security                      Cost                             Fair Value (Dec. 31, 2016) A                                  P195,000                    P225,000 B                                  300,000                      162,000 C                                  660,000                      678,000 Before any adjustments related to these trading securities, Axel Company had net income of P900,000.       What is Axel’s net income after making any necessary trading security adjustments? Net income before trading security adjustment _____________ Unrealized loss (P1,155,000-P1,065,000) ____________ Net...
At December 31, 2018 the accountant for Brady Corp. mistakenly accounted for its Trading Securities portfolio...
At December 31, 2018 the accountant for Brady Corp. mistakenly accounted for its Trading Securities portfolio as an Available for Sale portfolio. The portfolio consists of three debt securities with a total amortized cost of $62,000 and a December 31, 2018 fair market value of $57,400. The impairment was deemed to be temporary. All three securities were purchased during 2018 and no securities were sold during the year. The effect of this error on assets, net income and comprehensive income...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT