has equity securities designated as at fair value Hilton, Inc. through profit or loss that were purchased during 2020. At the end of 2020, the securities had total fair value of P525,000. As of December 31, 2021, the cost and fair values are as follows: Cost P100,000 190,000 250,000 Fair Value P 90,000 210,000 235,000 Investment 1 2 The gain or loss that would be reported in profit or loss as a result of the valuation of the securities at the end of 2021 is Р 5,000 P10,000 P20,000 P25,000 а. b. c. d.

has equity securities designated as at fair value Hilton, Inc. through profit or loss that were purchased during 2020. At the end of 2020, the securities had total fair value of P525,000. As of December 31, 2021, the cost and fair values are as follows: Cost P100,000 190,000 250,000 Fair Value P 90,000 210,000 235,000 Investment 1 2 The gain or loss that would be reported in profit or loss as a result of the valuation of the securities at the end of 2021 is Р 5,000 P10,000 P20,000 P25,000 а. b. c. d.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

At December 31, 2017, the available-for-sale debt portfolio for Steffi Graf, Inc. is as follows. Security Cost Fair Value Unrealized Gain (Loss) A $17,500 $15,000 $(2,500) B 12,500 14,000 1,500 C 23,000 25,500 2,500 Total $53,000 $54,500 1,500 Previous fair value adjustment balance-Dr 400 Fair value adjustment-Dr $1,100 On January 20, 2018, Steffi Graf, Inc. sold security A for $15,100. The sale proceeds are net of brokerage fees. A. Prepare the adjusting entry at December 31, 2017, to report the portfolio at fair value. B. Show the balance sheet presentation of the investment-related accounts at December 31, 2017.
City Company purchased the following portfolio of equity securities during 2020 and the company has made an irrevocable designation as fair value to other comprehensive income. The following information pertains to the securitiesSecurity Cost Market Value 12/31/20X P 800,000 P 820,000 Y 1,300,000 1,320,000Z 220,000 280,000How much should City Company report as unrealized gain related to the securities transactions in its 2020 statement of financial position? a. none b. 20,000 unrealized gain c. 100,000 unrealized gain d. 120,000 unrealized gain
What is the interest income on the bond investment for the year 2022? What is the carrying amount of the bond investment on December 31, 2022?
• The following information is available for Alpha's investments: Fair Value Market Original Adjustment Value Investment Cost 12/31/2020 Classification 12/31/2021 Available for Beta bonds $80,000 $6,000 dr. $78,000 Sale Gamma bonds $60,000 $4,000 cr. Trading $66,000 The journal entries on 12/31/21 for Beta will include: O Debit to Unrealized Loss - OCI for $8,000 O Debit to Unrealized Loss - NI for $2,000 O Debit to Unrealized Loss - NI for $6,000 O Debit to Unrealized Loss - NI for $8,000
At December 31, 2020, the available-for-sale debt portfolio for Windsor, Inc. is as follows. Security Cost Fair Value UnrealizedGain (Loss) A $27,125 $23,250 $(3,875 ) B 19,375 21,700 2,325 C 35,650 39,525 3,875 Total $82,150 $84,475 2,325 Previous fair value adjustment balance—Dr. 620 Fair value adjustment—Dr. $1,705 On January 20, 2021, Windsor, Inc. sold security A for $23,405. The sale proceeds are net of brokerage fees. 1). Prepare the adjusting entry at December 31, 2020, to report the portfolio at fair value. 2). Show the balance sheet presentation of the investment-related accounts at December 31, 2020
What amount of loss/gain from investments should Sofia report in 2021 income statement?* Sofia had investments in equity securities costing $1,000,000 that were classified as investment in fair value thru other comprehensive income. On June 30, 2021, Sofia decided to reclassify the investment as investment in fair value thru profit and loss. The investments' fair value was P985,000 at December 31, 2020 and $950,000 at June 30, 2021, and #1,500,000 at December 31, 2021. ₱ 15,000 loss ₱ 0
Investment in Trading and AFS Securities A company purchases debt securities for $100,000 at the beginning of 2022. It classifies as trading securities and $60,000 as AFS securities. It sells the securities in 2023. Required For each of the following scenarios, indicate the net effect on income and other comprehensive income in each year 2022 and 2023. In each case, any unrealized decline in value below cost is expected to be recovered and is attributed to market factors. a. Fair value, end of 2022 Selling price, 2023 Note: Use a negative sign with an answer to indicate the net effect amount decreases Income or OCI. Income OCI 5,000 ✓ (1,000) * End of 2022 $ 2023 b. Trading securities AFS securities $38,000 $65,000 43,000 64,000 Fair value, end of 2022 Selling price, 2023 (2,000)✓ $ 5,000 x End of 2022 $ 2023 Trading securities AFS securities $45,000 $56,000 42,000 68,000 Note: Use a negative sign with an answer to indicate the net effect amount decreases Income or OCI. OCI (4,000)✓ 0…
Lopez Company purchased equity securities during 2020 to be held as Investment. The cost and Market Value of the investments are: December 31,2020. Cost. Market Trading Securities. 2,000,000. 2,500,000 Securities not held for trading. 3,000,000. 2,300,000 December 31,2021 Cost Market Trading Securities. 1,000,000 1,100,000 Securities not held for trading. 1,500,000. 1,450,000 On June 30 2021, half of the trading Securities were sold for 1,500,000 and securities not held for trading were sold for 1,100,000. The securities not held for trading are measured at fair value through other comprehensive income by election. REQUIRED: Prepare the Journal entries for 2020 and 2021
Ee.105.
Prepare adjusting entry to record fair value, and indicate statement presentation. E16.11 (LO 3), AP Financial Statement Writing At December 31, 2022, available-for-sale debt securities for Storrer, Inc. are as follows. The securities are considered to be a long-term investment. Fair Value $16,000 14,000 21,000 $51,000 Security A B с Cost $17,500 12,500 23,000 $53,000 Instructions a. Prepare the adjusting entry at December 31, 2022, to report the securities at fair value. b. Show the statement presentation at December 31, 2022, after adjustment to fair value. c. E. Kretsinger, a member of the board of directors, does not understand the reporting of the unreal- ized gains or losses. Write a letter to Ms. Kretsinger explaining the reporting and the purposes that it serves.
At December 31, 2020, the available-for-sale debt portfolio for Ivanhoe, Inc. is as follows. Security Cost Fair Value UnrealizedGain (Loss) A $17,100 $14,200 $(2,900) B 11,800 15,300 3,500 C 22,000 25,600 3,600 Total $50,900 $55,100 4,200 Previous fair value adjustment balance—Dr. 300 Fair value adjustment—Dr. $3,900 On January 20, 2021, Ivanhoe, Inc. sold security A for $14,300. The sale proceeds are net of brokerage fees.Ivanhoe, Inc. reports net income in 2020 of $117,000 and in 2021 of $141,000. Total holding gains (including any realized holding gain or loss) equal $42,000 in 2021. 1. Prepare a statement of comprehensive income for 2020, starting with net income. 2. Prepare a statement of comprehensive income for 2021, starting with net income.
presentation. EH.6 (LO 3), AP At December 31, 2022, the trading debt securities for Gwynn, Inc. are as follows. Fair Value Instructions Security A B C Total Cost $18,100 12,500 23,000 $53,600 $16,000 14,800 18,000 $48,800 a. Prepare the adjusting entry at December 31, 2022, to report the securities at fair value. b. Show the balance sheet and income statement presentation at December 31, 2022, after adjustment to fair value. Prepare adjusting entry to record fair value, and indicate statement presentation.