Six events pertaining to financial assets are described as follows:a. Invested idle cash in marketable securities and classified them as available for sale.b. Collected an account receivable.c. Sold marketable securities at a loss (proceeds from the sale were equal to the market valuereflected in the last balance sheet).d. Determined a particular account receivable to be uncollectible and wrote it off against theAllowance for Doubtful Accounts. e. Received interest earned on an investment in marketable securities (company policy is to rec-ognize interest as revenue when received ). f. Made a fair value adjustment increasing the balance in the Marketable Securities account toreflect a rise in the market value of securities owned.Indicate the effects of each transaction or adjusting entry upon the financial measurements in thefour column headings listed below. Use the code letters I for increase, D for decrease, and NE forno effect. Cash flow classifications were discussed in Chapter 2.Total Net Operating NonoperatingTransaction Assets Income Cash Flow Cash Flow
Six events pertaining to financial assets are described as follows:
a. Invested idle cash in marketable securities and classified them as available for sale.
b. Collected an
c. Sold marketable securities at a loss (proceeds from the sale were equal to the market value
reflected in the last
d. Determined a particular account receivable to be uncollectible and wrote it off against the
Allowance for Doubtful Accounts.
e. Received interest earned on an investment in marketable securities (company policy is to rec-
ognize interest as revenue when received ).
f. Made a fair value adjustment increasing the balance in the Marketable Securities account to
reflect a rise in the market value of securities owned.
Indicate the effects of each transaction or
four column headings listed below. Use the code letters I for increase, D for decrease, and NE for
no effect.
Total Net Operating Nonoperating
Transaction Assets Income Cash Flow Cash Flow
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
