Problem 15-10 (AICPA Adapted) During 2021, Haggard Company purchased marketable equity securities for P1,850,000 to be held as trading investments In 2021, the entity appropriately reported an unrealized gain of P250,000 in the income statement. There was no change during 2021 in the composition of the portfolio of trading securities. Pertinent data on December 31, 2022 are: Security Cost Market value 600,000 450,000 800,000 900,000 400,000 1,200,000 What amount of unrealized gain on these securities should be included in the 2022 income statement? a. 400,000 b. 650,000 c. 900,000 d. 700,000 ABC

Problem 15-10 (AICPA Adapted) During 2021, Haggard Company purchased marketable equity securities for P1,850,000 to be held as trading investments In 2021, the entity appropriately reported an unrealized gain of P250,000 in the income statement. There was no change during 2021 in the composition of the portfolio of trading securities. Pertinent data on December 31, 2022 are: Security Cost Market value 600,000 450,000 800,000 900,000 400,000 1,200,000 What amount of unrealized gain on these securities should be included in the 2022 income statement? a. 400,000 b. 650,000 c. 900,000 d. 700,000 ABC

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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Please help with problem. At the beginning of 2019, Ace Company had the following portfolio of investments in available-for-sale debt securities (all of which were acquired at par value): Security Cost 1/1/19 Fair Value A $25,000 $31,000 B 38,000 36,000 Totals $63,000 $67,000 During 2019, the following transactions occurred: Transactions: May 3 Purchased C debt securities at their par value for $50,000. July 1 Sold all of the A securities for $31,000 plus interest of $1,000. Dec. 31 Received interest of $1,000 on the B and C securities. Additionally the following information was available: Security 12/31/19 Fair Value B $42,000 C 53,000 Required: 1. Prepare journal entries to record the preceding information. 2. What is the balance in the Unrealized Holding Gain/Loss account on December 31, 2019? 3. Next Level What justification does the FASB give for its treatment of unrealized holding gains and losses…
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At the beginning of 2019, Ace Company had the following portfolio of investments in available-for-sale debt securities (all of which were acquired at par value): Security Cost Fair Value (1/1/2019) A $20,000 $24,000 B $30,000 $31,500 Totals $50,000 $55,500 During 2019, the following transactions occurred: May 3 Purchased C debt securities at their par value for $50,000. July 1 Sold all of the A securities for $24,000 plus interest of $1,500. Dec. 31 Received interest of $7,600 on the B and C securities. Additionally the following information was available: Security Fair Value (12/31/2019) B $31,250 C $52,500 Question Journal entries for…
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