On January 1, the Valuation Allowance for Trading Investments had a zero balance. On December 31, the cost of the trading securities portfolio was $52,200, and the fair value was $50,800. Prepare the December 31 adjusting journal entry to record the unrealized gain or loss on trading investments.

On January 1, the Valuation Allowance for Trading Investments had a zero balance. On December 31, the cost of the trading securities portfolio was $52,200, and the fair value was $50,800. Prepare the December 31 adjusting journal entry to record the unrealized gain or loss on trading investments.

Financial Accounting

15th Edition

ISBN:9781337272124

Author:Carl Warren, James M. Reeve, Jonathan Duchac

Publisher:Carl Warren, James M. Reeve, Jonathan Duchac

Chapter15: Investments And Fair Value Accounting

Section: Chapter Questions

Problem 2PA: Rios Financial Co. is a regional insurance company that began operations on January 1, Year 1. The...

See similar textbooks

Related questions

Q: Ans ? General Accounting question

A: Step 1: Define Comprehensive IncomeComprehensive income includes both net income and other…

Q: Please give me correct answer this financial accounting question

A: Step 1: Define Dividend YieldDividend yield is a financial ratio that indicates how much a company…

Q: what will be the firm's cash cycle?

A: Formula for Cash Conversion Cycle (CCC)CCC=Days Inventory Outstanding (DIO)+Days Sales Outstanding…

Q: Answer?

A: Concept of Sales RevenueSales Revenue is the total amount a company earns from selling its goods or…

Q: What is their return on capital employed on these financial accounting question?

A: Step 1: Define Return on Capital Employed (ROCE)Return on Capital Employed (ROCE) is a financial…

Q: Flare Enterprises sells a product in a competitive marketplace. Market analysis indicates that its…

A: To determine how much **Flare Enterprises** needs to cut costs per unit, we follow these steps: Step…

Q: Financial accounting question

A: Step 1: Define Finance ChargeThe finance charge is the total amount of interest and fees paid over…

Q: Hii expert please give me correct anything general Accounting question

A: Step 1: Define Dividend Yield and P/E RatioDividend Yield measures how much a company pays in…

Q: Need help

Q: What is the value of the current liabilities?

A: Explanation of Net Working Capital (NWC):Net Working Capital (NWC) is the difference between a…

Q: What is the ending inventory under variable costing?

A: Explanation of Variable Costing: Variable costing is a method of product costing that only includes…

Q: financial account

A: Step 1: Definition of Debt-Equity RatioThe ratio of the total debt relative to the total equity is…

Q: What is the number of day's sales in accounts receivable?

A: Explanation of Days' Sales in Accounts Receivable: Days' Sales in Accounts Receivable (also known as…

Q: Compute the net income

A: Explanation of Net Sales: Net sales represents the total revenue from sales after deducting sales…

Q: Under absorption costing, the fixed overhead deferred in ending inventory is

A: Step 1:Under absorption costing, Fixed overhead cost is also included in the product cost, so from…

Q: General Accounting Question need help

A: Step 1: Definition of Net IncomeNet Income is the total revenue minus total expenses, including…

Q: Need help with this question solution general accounting

A: Step 1: Definition of Days' Sales in InventoryDays' Sales in Inventory (also referred to as…

Q: Not wrong answer general Accounting question

A: Step 1: Define Future Value of an AnnuityThe Future Value of an Annuity (FVA) calculates the…

Q: What is the cash ratio of this financial accounting question?

A: Step 1: Definition of Cash RatioThe cash ratio is a financial metric that measures a company's…

Q: I want to correct answer general accounting

A: Step 1: Recall the break-even in units formula.= fixed costs / contribution margin per unit In this…

Q: What is the interest charged by the bank on these financial accounting question?

A: Step 1: Define Interest on a Noninterest-Bearing NoteA noninterest-bearing note is a note payable…

Q: MCQ

A: Step 1:First calculate the cost per unit at each activity level: Activity level of 1,000 units: Cost…

Q: Dart Inc

A: Concept of Absorption CostingThe Absorption Costing method is a costing approach that includes all…

Q: What is aurora 2023 opereting leverage? Please given correct answer

A: Formula for Degree of Operating Leverage (DOL): DOL=Operating ProfitContribution Margin where:…

Q: hello teacher please solve questions

A: Step 1: Definition of Net IncomeNet income is the profit a company earns after deducting all…

Q: Hello tutor please provide correct answer general Accounting question

A: Step 1: Define Allowance for Doubtful AccountsThe Allowance for Doubtful Accounts is a contra-asset…

Q: hello tutor please help me

A: Step 1: Definition of GoodwillGoodwill is an intangible asset representing the value of a firm's…

Q: Provide Answer of This Financial Accounting Question And Please Don't Use Ai Becouse In all Ai give…

A: 1. Contribution Margin per Machine HourSelling Price per Unit = $55.00Variable Cost per Unit =…

Q: Need answer

A: Explanation of Net Sales: Net sales represents the total revenue generated from selling goods or…

Q: Fixed cost per unit?

A: Explanation of Absorption Costing:Absorption costing is a method where all manufacturing costs,…

Q: Financial Accounting 34

A: Concept of Long-term Debt: Long-term debt refers to financial obligations that are due beyond one…

Q: answer plz

A: Here's how to solve this problem:1. Calculate Earnings Per Share (EPS):P/E Ratio = Stock Price /…

Q: If cash received from customer

A: Concept of Cash Received from CustomersCash Received from Customers represents the actual cash…

Q: Can you help me with accounting questions

A: Step 1: Definition of Warranty LiabilityWarranty liability refers to the estimated cost a company…

Q: What is your holding period total return of this financial accounting question?

A: Step 1:Computation of the capital gain: Capital gain= Number of shares purchased x (Selling price…

Q: SUBJECT: GENERAL ACCOUNTING

A: Explanation of Asset Turnover Ratio: This is a financial efficiency ratio that measures how…

Q: Given below for smith Enterprises

A: Concept of Gross ProfitGross Profit is the amount a company earns from sales after subtracting the…

Q: What is the dollar amount of interest accounting question

A: Step 1: Definition of Interest EarnedInterest Earned is the amount of money a lender or investor…

Q: I want to this question answer general Accounting

A: Step 1: Define Stock Price Calculation with ExpansionWhen a company expands by issuing new shares,…

Q: ?

A: Concept of Mixed CostMixed costs have both fixed and variable components. They change in total, but…

Q: What is the value of the current liabilities?

A: Step 1: Formulas Net working capital = Current assets - Current liabilitiesCurrent liabilities =…

Q: Determine the pension asset/liability .... accounting question

A: Step 1: Definition of Pension LiabilityA pension liability arises when a company's Projected Benefit…

Q: What is the depreciation expense for year 1 and year 2 ?

A: Step 1: Definition of Units-of-Activity DepreciationThe units-of-activity depreciation method is a…

Q: financial account

A: Step 1: Definition of Days Sales in ReceivableDays Sales in Receivable, also known as Accounts…

Q: A parent company owns a 70% interest in a subsidiary whose stock has a valuation basis of $27 per…

A: The parent company owns a 70% stake in a subsidiary. The subsidiary's stock is valued at $27 per…

Q: Can you help me with accounting questions

A: Compute the total wood required.Total wood required = Finished product requirement + Scrap…

Q: Correct net sale revenue?

A: Step 1: Definition of Net Sales RevenueNet Sales Revenue is the total revenue from sales after…

Q: What is its dividend yield on these financial accounting?

A: Step 1:Dividend Yield can be calculated by dividing the Dividend per share by the Market price per…

Q: Bella's Florist purchased a delivery truck for $25,000. The company was given a $3,000 cash discount…

A: Explanation of Truck Account:The Truck Account is a fixed asset account that records the cost of…

Q: financial account

A: Step 1: Calculation of increase in unit salesIncrease in unit sales = December sales × Growth…

Question

Financial Accounting

On January 1, the Valuation Allowance for Trading Investments had
a zero balance. On December 31, the cost of the trading securities
portfolio was $52,200, and the fair value was $50,800.
Prepare the December 31 adjusting journal entry to record the
unrealized gain or loss on trading investments.

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Similar questions

On January 1, Valuation Allowance for Trading Investments had a zero balance. On December 31, the cost of the trading securities portfolio was $379,600, and the fair value was $358,900. Prepare the December 31 adjusting journal entry to record the unrealized gain or loss on trading investments. Refer to the Chart of Accounts for exact wording of account titles.
Instructions On January 1, Valuation Allowance for Trading Investments had a zero balance. On December 31, the cost of the trading securities portfolio was $380,400, and the fair value was $346,500. Prepare the December 31 adjusting journal entry to record the unrealized gain or loss on trading investments. Refer to the Chart of Accounts for exact wording of account titles.
Financial Accounting
On January 1, Valuation Allowance for Trading The balance sheet caption used to report temporary or long-term investments in stocks or bonds held as either trading, available-for-sale, held-to-maturity or equity method securities. Investments had a zero balance. On December 31, the cost of the trading securities portfolio was $66,800, and the fair value was $68,000. Prepare the December 31 adjusting journal entry to record the Changes in the fair value of equity or debt securities for a period.unrealized gain or loss on trading investments. Dec. 31
Valuing Trading Securities at Fair Value On January 1, Valuation Allowance for Trading Investments had a zero balance. On December 31, the cost of the trading securities portfolio was $54,800, and the fair value was $55,800. Prepare the December 31 adjusting journal entry to record the unrealized gain or loss on trading investments.
Trading Investments purchased for $10 were compared with the fair value of $8 at the end of the year. The journal entry to adjust the investments would include a: Group of answer choices credit to Valuation Allowance for Trading Investments $2. debit to Valuation Allowance for Trading Investments $2. credit to Unrealized Gain on Trading Investments $2. debit to Unrealized Gain on Trading Investments $2.
aluing Trading Securities at Fair Value On January 1, Valuation Allowance for Trading Investments had a zero balance. On December 31, the cost of the trading securities portfolio was $59,000, and the fair value was $60,400. Prepare the December 31 adjusting journal entry to record the unrealized gain or loss on trading investments. Dec. 31
Trading Securities at Fair Value On January 1, 20Y9, Valuation Allowance for Trading Investments had a zero balance. On December 31, the cost of the trading securities portfolio was $62,600, and the fair value was $63,500. Journalize the December 31, 20Y9, adjusting entry to record the unrealized gain or loss on trading investments. If an amount box does not require an entry, leave it blank. Dec. 31
Rios Financial Co. is a regional insurance company that began operations on January 1, Year 1. The following transactions relate to trading securities acquired by Rios Financial Co., which has a fiscal year ending on December 31: Instructions 1. Journalize the entries to record these transactions. 2. Prepare the investment-related current asset balance sheet presentation for Rios Financial Co. on December 31, Year 2. 3. How are unrealized gains or losses on trading investments presented in the financial statements of Rios Financial Co.?
Ticker Services began operations in Year 1 and holds long-term investments in available-for-sale debt securities. The year-end cost and fair values for its portfolio of these investments follow. Portfolio of Available-for-Sale Securities December 31, Year 1 December 31, Year 2 December 31, Year 3 December 31, Year 4 View transaction list View journal entry worksheet Prepare journal entries to record each year-end fair value adjustment for these securities. No 3 Cost $11,000 18,900 20,600 14,800 Date Dec. 31, Year 3 No Transaction Recorded Fair Value $17,500 28,000 30, 200 19,700 General Journal Debit Credit Ⓒ
Selected accounts from GermX Company's adjusted trial balance for the year ended December 31 follow. Trading securities (at cost) $5,200 Cash Short-term stock investments (at cost) Equity method investments $ 10,500 (1,100) 23,500 Fair value adjustment-stock 70,500 Accounts receivable 2,500 Held-to-maturity securities (long-term) 13,500 Fair value adjustment-trading 600 Prepare the assets section of a classified balance sheet. Hint. Fair Value Adjustment-Trading increases trading securities; Fair Value Adjustment-Stock decreases stock investments. (Amounts deducted should be indicated by a minus sign.) Current assets Total current assets Long-term Investments GERMX COMPANY Assets Section of Balance Sheet December 31 Assets Total long-term investments Total assets
At December 31, 2022, the trading debt securities for Sheridan, Inc. are as follows. Security A (a) B C Cost $17,800 12,000 Dec. 31 22,900 $52,700 Fair Value $16,300 13,600 19,400 $49,300 Prepare the adjusting entry at December 31, 2022, to report the securities at fair value. (List all debit entries before credit er Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No- for the account titles and enter O for the amounts.) Date Account Titles and Explanation Debit Credit