Current Attempt in ProgressSweet Company has the following securities in its portfolio on December 31, 2025. None of these investments are accounted forunder the equity method.Investments1,500 shares of Gordon, Inc., common5,000 shares of Wallace Corp., common400 shares of Martin, Inc., preferredAll of the securities were purchased in 2025.Cost$72,000Investments175,0005,000 shares of Wallace Corp., common63,200$310,200SearchFair ValueIn 2026, Sweet completed the following securities transactions.$68,000March 1 Sold the 1,500 shares of Gordon, Inc., common, @ $45 less fees of $1,200.April 1 Bought 700 shares of Earnhart Corp., common, @ $75 plus fees of $1,500.Cost$175,000170,400Sweet's portfolio of equity securities appeared as follows on December 31, 2026.64,700$303,100Fair Value$170,400DELL Sweet's portfolio of equity securities appeared as follows on December 31, 2026.Investments5,000 shares of Wallace Corp., common700 shares of Earnhart Corp., common400 shares of Martin, Inc., preferredCost$175,000No. Account Titles and Explanationادا54,00063,200Prepare the general journal entries for Sweet Company for:(a) The 2025 adjusting entry.(b)The sale of the Gordon stock.(c) The purchase of the Earnhart stock.(d) The 2026 adjusting entry for the portfolio.$292,200Fair Value$170,40050,30061,200(List all debit entries before credit entries. Credit account titles are automatically indented when amount is entered. Do not indent manually. Ifno entry is required, select "No Entry" for the account titles and enter O for the amounts.)$281,900DebitCredit

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Current Attempt in Progress Sweet Company has the following securities in its portfolio on December 31, 2025. None of these investments are accounted for under the equity method. Investments 1,500 shares of Gordon, Inc., common 5,000 shares of Wallace Corp., common 400 shares of Martin, Inc., preferred All of the securities were purchased in 2025. Cost $72,000 175,000 Investments 5,000 shares of Wallace Corp., common 63,200 $310,200 In 2026, Sweet completed the following securities transactions. O Search Fair Value March 1 Sold the 1,500 shares of Gordon, Inc., common, @ $45 less fees of $1,200. April 1 Bought 700 shares of Earnhart Corp., common, @ $75 plus fees of $1,500. $68,000 Sweet's portfolio of equity securities appeared as follows on December 31, 2026. Cost $175,000 170,400 64,700 $303,100 Fair Value $170,400 DELL

Current Attempt in Progress Sweet Company has the following securities in its portfolio on December 31, 2025. None of these investments are accounted for under the equity method. Investments 1,500 shares of Gordon, Inc., common 5,000 shares of Wallace Corp., common 400 shares of Martin, Inc., preferred All of the securities were purchased in 2025. Cost $72,000 175,000 Investments 5,000 shares of Wallace Corp., common 63,200 $310,200 In 2026, Sweet completed the following securities transactions. O Search Fair Value March 1 Sold the 1,500 shares of Gordon, Inc., common, @ $45 less fees of $1,200. April 1 Bought 700 shares of Earnhart Corp., common, @ $75 plus fees of $1,500. $68,000 Sweet's portfolio of equity securities appeared as follows on December 31, 2026. Cost $175,000 170,400 64,700 $303,100 Fair Value $170,400 DELL

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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On December 31, 2014, Hubble Corp. has the following securities in its portfolio of temporary investments: Cost Market 5,000 common shares of Orion Corp. $ 82,500 $ 90,500 10,000 common shares of Rigel Ltd. 90,000 84,500 $172,500 $175,000 On May 1, 2015, Hubble purchased 500 common shares of Aries Corp. @ $50.25 each plus 6.0% brokerage fee. On July 1, 2015 Hubble received dividends totalling $4,250 from their portfolio investments. On December 31, 2015, Hubble’s portfolio of trading equity securities reported the following market values: 5,000 common shares of Orion Corp. $ 71,600 10,000 common shares of Rigel Ltd. 98,500 500 common shares of Aries Corp. 27,750…
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io 1 TOYOTY Corporation acquired $5,500,000 par value, 12%, five-year bonds on their date of issue, January 1, 2019. The market rate at the time of issue was 8% and interest is paid semiannually on June 30 and December 31. Capitol will use the effective interest rate method to account for this investment. Capitol intends to hold the investment until the bonds mature. Table Present Value of $1 Periods 4% 6% 8% 12% 5 0.8219 0.7473 0.6806 0.5674 10 0.6756 0.5584 0.4632 0.3220 Table Present Value of an Ordinary Annuity Periods 4% 6% 8% 12% 5 4.4518 4.2124 3.9927 3.6048 10 8.1109 7.3601 6.7101 5.6502 Instruction: 1. Determine the purchase price of the investment in bonds. 2. Prepare the journal entry to record the acquisition of the bond investment. 3. Prepare the journal entry to record the interest income at June 30, 2019. 4. Prepare the journal entry to record the sale of the bonds at December 31, 2021 for $5,960,000.
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Balance Sheet Presentation of Available-for-Sale Investments During Year 1, its first year of operations, Galileo Company purchased two available-for-sale investments as follows: Security Shares Purchased Cost Hawking Inc. 860 $43,602 Pavlov Co. 2,330 61,512 Assume that as of December 31, Year 1, the Hawking Inc. stock had a market value of $60 per share and the Pavlov Co. stock had a market value of $48 per share. Galileo Company had net income of $337,400 and paid no dividends for the year ending December 31, Year 1. All of the available-for-sale investments are classified as current assets. a. Prepare the Current Assets section of the balance sheet presentation for the available-for-sale investments. Galileo Company Balance Sheet (selected items) December 31, Year 1 Assets Current Assets: $fill in the blank 6f30cb02405dfbc_2 Plus Unrealized Gain (Loss) on Available-for-Sale Investments fill in the blank 6f30cb02405dfbc_4 $fill…
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