On January I of Year 1, Steve Company purchased the following securities. Security Type Classification Cost $ 5,00 Bond Trading B Stock Trading 27,500 Stock Available for sale $10,000 Bond Available for sale 17,000 Stock Available for sale 9,200 Steve Company sold all of its investment in Security D for $8,900 on October 31 of Year 1. On December 31 of Year 1, the following fair values were available for Securities A, BC, and E (with Security D having been sold on October 31). Cost Market Value(end Year 1) 5 5,000 Security Type Classification Bond Trading $3.00 Stock Trading 27,500 36,700 Stock Available for sale s10,000 $14,000 Stock Available for sale 9,200 6,000 Compute the TOTAL amount of net UNrealized gain or loss that will be reported in Steve Company's OTHER COMPREHENSIVE INCOME for Year 1. O Net gain $8.200 O Net gain of $6,000 O Net gain $9,000 O Net gain of $7,400 O Net gain of $800 FEEDBACK 0/1 (0.0%)

On January I of Year 1, Steve Company purchased the following securities. Security Type Classification Cost $ 5,00 Bond Trading B Stock Trading 27,500 Stock Available for sale $10,000 Bond Available for sale 17,000 Stock Available for sale 9,200 Steve Company sold all of its investment in Security D for $8,900 on October 31 of Year 1. On December 31 of Year 1, the following fair values were available for Securities A, BC, and E (with Security D having been sold on October 31). Cost Market Value(end Year 1) 5 5,000 Security Type Classification Bond Trading $3.00 Stock Trading 27,500 36,700 Stock Available for sale s10,000 $14,000 Stock Available for sale 9,200 6,000 Compute the TOTAL amount of net UNrealized gain or loss that will be reported in Steve Company's OTHER COMPREHENSIVE INCOME for Year 1. O Net gain $8.200 O Net gain of $6,000 O Net gain $9,000 O Net gain of $7,400 O Net gain of $800 FEEDBACK 0/1 (0.0%)

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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Stoll Company's long-term available-for-sale portfolio at the start of this year consists of the following. Available-for-Sale Securities Cost Fair Value Company A bonds $ 534,100 $ 492,000 Company B notes 159,140 155,000 Company C bonds 662,400 642,140 Stoll enters into the following transactions involving its available-for-sale debt securities this year. January 29 Sold one-half of the Company B notes for $78,820. July 6 Purchased Company X bonds for $122,100. November 13 Purchased Company Z notes for $267,300. December 9 Sold all of the Company A bonds for $524,800. Fair values at December 31 are B, $82,300; C, $603,800; X, $120,000; and Z, $276,000. Problem 15-3A (Algo) Part 3 3. What amount of gains or losses on transactions relating to long-term investments in available-for-sale debt securities does Stoll report on its income statement for this year?
On July 1, Year 1, XYZ Corporation purchased as a long-term investment a $2 million face amountABC Co. 6% bond for $2,025,000 plus accrued interest to yield 5.75%. On December 31, Year 1,the bonds had a fair value of $1,850,000. What amount of income should XYZ report on its incomestatement for the year ended December 31, Year 1, related to this bond investment if it is classifiedas a held-to-maturity security?a. $120,000b. $116,438c. $121,500d. $115,000
If bonds with a face value of $124000 are converted into common stock when the carrying value of the bonds is $118000, the entry to record the conversion will include a debit to O Bonds Payable equal to the market price of the bonds on the date of conversion. O Bonds Payable for $124000. O Discount on Bonds Payable for $6000. O Bonds Payable for $118000. eTextbook and Media Save for Later Attempts: 0 of 2 used Submit Answer @ 3 4 5 6 7 W e у S g h j k V b n m alt ctrl
9, please answer part c, thanks
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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 Cost $ 13,000 20,000 23,000 16,500 December 31, Year 3 December 31, Year 4 Complete this question by entering your answers in the tabs below. Prepare journal entries to record each year-end fair value adjustment for these securities. Adjustment General Journal Calculation Calculation adjustment required to fair value adjustment. 12/31/Year 1 Existing balance in Fair Value Adjustment-AFS (LT) Required balance in Fair Value Adjustment-AFS (LT) Adjustment required to Fair Value Adjustment-AFS (LT) 12/31/Year 2 Existing balance in Fair Value Adjustment-AFS (LT) Required balance in Fair Value Adjustment-AFS (LT) Adjustment required to Fair Value Adjustment-AFS (LT) 12/31/Year 3 Existing balance in Fair Value…