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Show the balance sheet presentation of investment securities at December 31, 2022. Crane Company Balance Sheet (Partial) December 31, 2022 MA

Show the balance sheet presentation of investment securities at December 31, 2022. Crane Company Balance Sheet (Partial) December 31, 2022 MA

FINANCIAL ACCOUNTING
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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Show the balance sheet presentation of investment securities at December 31, 2022. Crane Company Balance Sheet (Partial) December 31, 2022 Give the statement classification of each income statement account. Income Statement Account Dividend Revenue Gain on Sale of Stock Investments Interest Revenue Loss on Sale of Debt Investments Unrealized Loss-Income Category Operating Expenses
Transcribed Image Text:Show the balance sheet presentation of investment securities at December 31, 2022. Crane Company Balance Sheet (Partial) December 31, 2022 Give the statement classification of each income statement account. Income Statement Account Dividend Revenue Gain on Sale of Stock Investments Interest Revenue Loss on Sale of Debt Investments Unrealized Loss-Income Category Operating Expenses
In January 2022, the management of Crane Company concludes that it has sufficient cash to permit some short-term investments in debt and equity securities. During the year, the following transactions occurred. Feb. 1 Mar. 1 Apr. 1 July 1 Aug 1 Sept. 1 Oct. 1 Oct. 1 Purchased 500 shares of Muninger common stock for $27.500. Purchased 700 shares of Tatman common stock for $17,500. At December 31, the fair value of the Muninger and Tatman common stocks were $56 and $24 per share respectively. These stock investments by Crane Company provide less than a 20% ownership interest. Purchased 50 of $1,300, 7 % Yoakem bonds for $65,000. Interest is payable semiannually on April 1 and October 1. Received a cash dividend of $0.50 per share on the Muninger common stock. Sold 167 shares of Muninger common stock at $65 per share. Received a $2 per share cash dividend on the Tatman common stock Received the semiannual interest on the Yoakem bonds. Sold the Yoakem bonds for $63,800. x Your answer is incorrect. Date Dec. 31 Prepare the adjusting entry at December 31, 2022, to report the investment securities at fair value. All securities are considered to be trading securities. (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 O for the amounts) Account Titles and Explanation Debt investments Stock Investments Loss on Sale of Debt Investments Debt Investments Debit 1200 Credit 1200
Transcribed Image Text:In January 2022, the management of Crane Company concludes that it has sufficient cash to permit some short-term investments in debt and equity securities. During the year, the following transactions occurred. Feb. 1 Mar. 1 Apr. 1 July 1 Aug 1 Sept. 1 Oct. 1 Oct. 1 Purchased 500 shares of Muninger common stock for $27.500. Purchased 700 shares of Tatman common stock for $17,500. At December 31, the fair value of the Muninger and Tatman common stocks were $56 and $24 per share respectively. These stock investments by Crane Company provide less than a 20% ownership interest. Purchased 50 of $1,300, 7 % Yoakem bonds for $65,000. Interest is payable semiannually on April 1 and October 1. Received a cash dividend of $0.50 per share on the Muninger common stock. Sold 167 shares of Muninger common stock at $65 per share. Received a $2 per share cash dividend on the Tatman common stock Received the semiannual interest on the Yoakem bonds. Sold the Yoakem bonds for $63,800. x Your answer is incorrect. Date Dec. 31 Prepare the adjusting entry at December 31, 2022, to report the investment securities at fair value. All securities are considered to be trading securities. (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 O for the amounts) Account Titles and Explanation Debt investments Stock Investments Loss on Sale of Debt Investments Debt Investments Debit 1200 Credit 1200
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