On December 31, 2024, Oriole Company purchased debt securities as trading securities. Pertinent data are as follows:Fair ValueSecurityCostAt 12/31/25A$128400$114500B167500182400C284400258500On December 31, 2025, Oriole transferred its investment in security Ċ from trading to available-for-sale because Oriole intends toretain security C as a long-term investment. What total amount of gain or loss on its securities should be reported in Oriole's incomestatement for the year ended December 31, 2025?O $24900 lossO $1000 gainO $25900 lossO $39800 loss

Detailed explanation:Security A:Cost: $128,400Fair Value as of 12/31/25: $114,500Gain/Loss: Fair…

Answered: On December 31, 2024, Oriole Company…

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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Subject: accounting
Pharoah Company has these data at December 31, 2022, the end of its first year of operations. Debt Securities Trading Available-for-sale (a) Cost $119,700 100,300 The available-for-sale securities are held as a long-term investment. Fair Value $125,700 98,300 Prepare the adjusting entries to report: (1) Trading securities at fair value and (2) Available-for-sale securities at fair value. (List all debit entries before credit entries. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter 0 for the amounts.) No. Account Titles and Explanation (1) Debit Credit
Stanley Dodge Corporation bought several marketable securities during 2020. At December 31, 2020, the company possessed investments in bonds listed below. All are considered securities available-for-sale. At January 1, 2020, the Corporation's Fair Value Adjustment Account had a credit balance of $150,000. Cost Fair Value Unrealized Holding Gain(Loss) Short Term: Ashkent, Inc $1,100,000 $1,300,000 Imagen Pharma 1,200,000 1,150,000 Total Long term: Erdinger Foods $2,000,000 $1,980,000 Ashanti Gold 1,500,000 1,750,000 Total Prepare the adjusting entries for December 31, 2020. Show how you arrived at the balance needed for the Fair Value Adjustment on 12/31/2020.
Req. 4: 1) Record the fair-value adjustment. 2) Record any reclassification adjustment. 3) Record the sale of the investment by Mills.
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The following selected transactions relate to investment activities of Ornamental Insulation Corporation during 2024. me buys debt securities, intending to profit from short-term differences in price and maintaining them in an active trading portfolio. Ornamental's fiscal year ends on December 31. No investments were held by Ornamental on December 31, 2023. March 31 Acquired 8% Distribution Transformers Corporation bonds costing $420,000 at face value. September 1 Acquired $960,000 of American Instruments' 10% bonds at face value. September 30 Received semiannual interest payment on the Distribution Transformers bonds. October 2 Sold the Distribution Transformers bonds for $455,000. November 1 Purchased $1,500,000 of M&D Corporation 6% bonds at face value. December 31 Recorded any necessary adjusting entry(s) relating to the investments. The market prices of the investments are American Instruments bonds M&D Corporation bonds (Hint: Interest must be accrued.) 'J $912,000 $ 1,562,000…
At the end of 2018, Hodge Company prepared the following schedule of investments in trading debt securities (all of which were acquired at par value): Company 12/31/2018 Book Value 12/31/2018 Fair Value Thompson Company $75,000 $74,200 Stevens Company 40,000 43,100 Totals $115,000 $117,300 During 2019, the following transactions occurred: July 1 Purchased Little Company debt securities for $100,000 (which is equal to par value). The securities carry an annual interest rate of 10%, mature on December 31, 2021, and pay interest seminannually on July 1 and December 31. Oct. 11 Sold all of the Thompson Company securities for $73,000 plus interest of $2,800. Dec. 31 Received interest of $5,000 on the Stevens Company and Little Company debt securities, and the following yearend total market values were available: Stevens Company debt securities, $45,000; Little Company debt securities, $98,000. Required: 1. Prepare journal entries to record the preceding information.…
Novak Company has the following investments as of December 31, 2020: Investments in common stock of Laser Company $1,350,000 Investment in debt securities of FourSquare Company $3,280,000 In both investments, the carrying value and the fair value of these two investments are the same at December 31, 2020. Novak’s stock investments does not result in significant influence on the operations of Laser Company. Novak’s debt investment is considered held-to-maturity. At December 31, 2021, the shares in Laser Company are valued at $950,000; the debt investment securities of FourSquare are valued at $2,460,000 and are considered impaired. LIST OF ACCOUNTS Accumulated Other Comprehensive Loss Allowance for Doubtful Accounts Allowance to Reduce Inventory to Market Bad Debt Expense Bonds Payable Cash Call Option Common Stock Cost of Goods Sold Debt Investments Dividend Revenue Dividend Receivable Equity Investments Fair Value Adjustment Futures Contract Gain on Sale of Investments…
Gg.13.
Indicate the statement presentation of each class of securities and any related unrealized gain (loss) accounts.
On January 1, 2024, Everglade Company purchased the following debt securities and properly accounted for them as securities available-for-sale: Security Cost Fair Value, 12/31/2024 ABC $ 58,000 $ 74,800 DEF 91,800 83,000 XYZ 34,000 39,800 All declines in value are considered temporary. What amount should the Everglade Company report relative to these securities in its 2024 statement of other comprehensive income? Multiple Choice $0. $22,600 unrealized holding gain. $13,800 net unrealized holding gain. $8,800 unrealized holding loss.
Presented below is selected information related to the financial instruments of Novak Company at December 31, 2025. This is Novak Company's first year of operations. Carrying Amount Fair Value (at December 31) Investment in debt securities (intent is to hold to maturity) $42,600 $43,500 Investment in Chen Company stock 737,000 856,500 Bonds payable 241,500 217,100 (a) Novak elects to use the fair value option for these investments. Assuming that Novak's net income is $108,000 in 2025 before reporting any securities gains or losses, determine Novak's net income for 2025. Assume that the difference between the carrying value and fair value is due to credit deterioration. Novak's net income for 2025 $ 228,400 (b) Record the journal entry, if any, necessary at December 31, 2025, to record the fair value option for the bonds payable. (List debit entry before credit entry. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is…

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