A e O Y 78% i 13:57Vo)LTEabcSAVETextPenBrushIn January 2013, Pennington Bancorpacquired $100,000 of marketable securitiesand classified them as Available for Sale. OnMarch 31, 2013, Pennington prepared its 10-Q and marked the securities down to theirmarket value of $85,000. On April 4, 2013,Pennington sold the securities for $93,000cash.Which of the following items would beincreased by the sale of the marketablesecurities? (check all that apply)Net IncomeAccumulated Other ComprehensiveIncomeCash from Financing ActivitiesCash from Investing ActivitiesMarketable SecuritiesВI U< >!!!!!!

Company has cash flow from different activities operating or financing or investment activities.

red $100,000 of marketable securities lassified them as Available for Sale. On h 31, 2013, Pennington prepared its 10- d marked the securities down to their et value of $85,000. On April 4, 2013, ington sold the securities for $93,000 n of the following items would be ased by the sale of the marketable rities? (check all that apply)

red $100,000 of marketable securities lassified them as Available for Sale. On h 31, 2013, Pennington prepared its 10- d marked the securities down to their et value of $85,000. On April 4, 2013, ington sold the securities for $93,000 n of the following items would be ased by the sale of the marketable rities? (check all that apply)

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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As of December 31, 2014, Kaman Corp. held two Equity Securities. Information regarding these securities is as follows: Secuirty Date Acquired Acquisition Cost Market Value (12/31/14) A $35,000 $88,000 B Based on the information given, create the journal entry that would be recorded on 12/31/14. For each line item of the journal entry write whether it is a Dr. or Cr., the account name, and amount. 1/16/14 2/22/14 $36,000 $79,000
On November 1, 2015, Journeyman, LLC purchased 900 of the $1,000 face value, 9% bonds of Celebration Incorporated, for $948,000, including accrued interest of $13,500. The bonds matured on January 1, 2017, and interest was paid on March 1 and September 1. If Journeyman uses the straight-line method of amortization and the bonds are classified as available-for-sale, how should the net carrying value of the bonds be shown on Journeyman’s December 31, 2015 balance sheet?
(b) Gassy Stores sells $400,000 of 12% bonds on June 1, 2022. The bonds pay interest on December 1 and June 1. The due date of the bonds is June 1, 2026. The market rate of similar investments is 10%. On December 1, 2024, Gassy Stores retired the bond for $400,000. The company closes its books on December 31. Requirements: (Show all workings) I. Calculate the proceeds from the sale of the bond. Clearly show the amount of the premium or discount and state two reasons which support the premium or discount calculated. II. Prepare a bond amortization schedule for the bond’s life III. Prepare all the journal entries for 2022, 2023 & 2024
3.The following data relates to Available for Sale Securities: Please Journalize all the entries required for this problem and then answer the question below. On December 1, 2007, a company purchased securities totaling $6,200. On December 31, 2007, the FMV of the securities was $5,300. On December 31, 2008, the FMV was $6,000. On December 31, 2009, the FMV was $3,200. Please use the blank journal paper that I have uploaded to the files section of Canvas for this class. The name of your accounts must have the correct names. Question: The unrealized loss or gains would appear on which financial statement?
Carpark Services began operations in 2001 and maintains investments in available-for-sale debt securities. The year-end cost and fair values for its portfolio of these debt securities follows. Available-for-Sale Securities December 31, 20x1 December 31, 20x2 Cost $ 250,000 $ 340,000 Fair Value $ 251,000 $ 350,000 The year-end adjusting entry to record the unrealized gain/loss at December 31, 20X1 is: Debit Unvealed Gain-Equity $1000; Credit Fair Value Adjustment-Available for Sale $1.000 Debit Uzed Loss-Equity $1,000, Credit Fair Value Adjustment-Available-for-Sale $1.000 Detit Realized Loss-Income $1,000: Creat Fair Value Adjustment-Available for Sale $1,000 Debat Far Value Adjustment-Available for Sale $1.000 Credit Unrealized Loss-Equity $1,000
Blue Company purchased, on January 1, 2017, as a held-to-maturity investment, $77,000 of the 9%, 5-year bonds of Chester Corporation for $71,309, which provides an 11% return.Prepare Blue’s journal entries for (a) the purchase of the investment, and (b) the receipt of annual interest and discount amortization. Assume effective-interest amortization is used. (Round answers to 0 decimal places, e.g. 1,225. 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 Debit Credit
Kristopher Company began operations in 2014. At 12/31/22, Kristopher had a debit balance of $25,000 in its Allowance for Adjustment to Market. At January 1, 2022, Kristopher owned the following securities, accounted for using the fair value method. Cost MJO Common (25,000 shares) $550,000 JKH Preferred (1,900 shares) 199,500 EKH Common (7,500 shares) 82,500 During 2022 the following events occurred: 4/3/22 Sold 3,000 shares of MJO for $75,000. 9/6/22 Acquired 1,500 shares of WVO Common for $25 per share. At 12/31/22, the fair values for Kristopher’s securities were: MJO Common, $24 per share JKH Preferred, $103 per share EKH Common, $13 per share WVO Common, $27 per share Required: Prepare any journal entries required in 2022 to record the securities activity, including any required adjusting entries at 12/31/22. Show any calculations.…
OurNewCO sold its Boring bond (AFS) for its fair value, $900,000) January 1, 2021. The balances from 12/31/2020 are follows: CASH REVENUE АMORT CV 885301 6/30/2020 50,000 53118.06 3,118 888,419 12/31/2020 50,000 53305.14 3,305 891,724 On 12/31/2020 the FV adjustment account had a debit balance of $8276. The face amount of the Boring Bonds is $1,000,000. Write out the journal entries needed to record this sale. Then complete the statements below.
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
At December 31, 2024, Hull-Meyers Corporation had the following investments that were purchased during 2024, its first year of operations: Trading Securities: Amortized cost Fair Value Security A Totals Security B Securities Available-for-Sale: Security C Security D Totals Securities to Be Held-to-Maturity: Security E Security F Totals $ 960,000 165,000 $ 1,125,000 $760,000 960,000 $ 1,720,000 $ 550,000 675,000 $ 1,225,000 $ 975,000 159,400 $ 1,134,400 $ 834,000 977,400 $ 1,811,400 $ 561,200 669,800 $ 1,231,000 No investments were sold during 2024. All securities except Security D and Security F are considered short-term investments. None of the fair value changes is considered permanent. Required: Complete the following table. Note: Amounts to be deducted should be indicated with a minus sign. Trading Securities Security A Security B Securities Available-for-Sale Security C Security D Securities to be Held-to- Answer is not complete. Reported on Balance Sheet as: Unrealized gain…
On December 12, 2024, an Investment in equity securities costing $84,000 was sold for $108,000. The total of the sale proceeds was credited to the Investment in equity securities account Required: 1. Prepare the Journal entry to correct the error, assuming it is discovered before the books are adjusted or closed in 2024. (Ignore Income taxes.) 2. Prepare the journal entry to correct the error assuming It is not discovered until early 2025. (Ignore income taxes.)

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