Splendid Company purchased equity securities during 2020 to be held as investments. The cost and market value of the investmentsare:CostMarketDecember 31, 2020Trading securities2,000,0002,500,000Securities not held for trading3,000,0002,900,000December 31, 2021Trading securities2.000,0002,200,000Securities not held for trading3,000,0002,300,000The securities not held for trading are measured at fair value through ather comprehensive income by irrevocable election.Requirement: Complete the table below. Wite zero (0) #R is not applicable.December 31, 2020December 31, 2021Statement of Financial PositionInvestments - FVPLInvestments - FVOCIStatement of IncomeUnrealized gainUnrealized lossRealized gainRealized lossStatement of Other Comprehensive IncomeUnrealized gainUnrealized lossStatement of Changes in EquityOther Comprehensive IncomeRetained earnings

Financial Management: Financial management comprises of two words i.e. Finance and management.…

Splendid Company purchased equity securties during 2020 to be heid as investmenta. The cost and market value of the investments are: Cost Market December 31, 2020 Trading securities 2,000,000 2,500,000 Securities not held for trading 3,000,000 2.900,000 December 31, 2021 Trading securities 2,000,000 2,200,000 Securities not held for trading 3,000,000 2.300,000 The securities not held for trading are measured at fair value through other comprehenaive income by irevocable election. Requirement: Complete the table below. Wite zero (0) nis not applicable. December 31, 2020 December 31, 2021 Statement of Financial Position Investments -FVPL Investments - FVOCI Statement of Income Unrealized gain Unrealized loss Realized gain Realized loss Statement of Other Comprehensive Income Unrealized gain Unrealized loss Statement of Changes in Equity Other Comprehensive Income Retained earnings

Splendid Company purchased equity securties during 2020 to be heid as investmenta. The cost and market value of the investments are: Cost Market December 31, 2020 Trading securities 2,000,000 2,500,000 Securities not held for trading 3,000,000 2.900,000 December 31, 2021 Trading securities 2,000,000 2,200,000 Securities not held for trading 3,000,000 2.300,000 The securities not held for trading are measured at fair value through other comprehenaive income by irevocable election. Requirement: Complete the table below. Wite zero (0) nis not applicable. December 31, 2020 December 31, 2021 Statement of Financial Position Investments -FVPL Investments - FVOCI Statement of Income Unrealized gain Unrealized loss Realized gain Realized loss Statement of Other Comprehensive Income Unrealized gain Unrealized loss Statement of Changes in Equity Other Comprehensive Income Retained earnings

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…
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…
At December 31, 2020, the available-for-sale debt portfolio for Crane, Inc. is as follows. Security A B C Total Previous fair value adjustment balance-Dr. Fair value adjustment- Dr. Cost $17,500 12,200 500 Fair Value $1,300 $15,000 23,400 25,700 $53,100 $54,900 14,200 Unrealized Gain (Loss) $(2,500 2,000 2,300 1,800 ) On January 20, 2021, Crane, Inc. sold security A for $15,100. The sale proceeds are net of brokerage fees. Crane, Inc. reports net income in 2020 of $118,000 and in 2021 of $143,000. Total holding gains (including any realized holding gain or loss) equal $49,000 in 2021. Prepare a statement of comprehensive income for 2020, starting with net income. Prepare a statement of comprehensive income for 2021, starting with net income. Please show underlying calculations (especially for reclassification adjustment for 2021). I correctly identified the statement of income for 2020, but am stuck on the one for 2021. Thank you!
Problem 5: Color Company began business in January of 2021. During the year, Color purchased a portfolio of securities listed below. In its December 31, 2021 balance sheet, Color appropriately reported a P300,000 debit balance in its "Unrealized gain/loss" account. The composition of the securities did not change during the year 2022. Pertinent data are as follows: Security BE (FVPL) BI (FVOCI) KO (FVOCI) Cost P2,000,000 3,600,000 3,900,000 P9,500,000 Market Value, December 31, 2022 P2,750,000 3,250,000 4,000,000 P10,000,000 5.1 How much is the carrying value of Investment on December 31, 2021? 5.2 How much is the unrealized gain or loss that should presented in the Equity section of the Balance Sheet on December 31, 2022?
Subject: acounting
On December 31, the cost of trading securities portfolio was $64,200, and the fair value was $67,000. The adjusting entry to record the unrealized gain or loss on trading investments would included a : Group of answer choices debit Unrealized Loss on Trading Investments debit Unrealized Gain on Trading Investments credit Unrealized Loss on Trading Investments credit Unrealized Gain on Trading Investments
• The following information is available for Alpha's investments: Fair Value Market Original Adjustment Value Investment Cost 12/31/2020 Classification 12/31/2021 Available for Beta bonds $80,000 $6,000 dr. $78,000 Sale Gamma bonds $60,000 $4,000 cr. Trading $66,000 The journal entries on 12/31/21 for Beta will include: O Debit to Unrealized Loss - OCI for $8,000 O Debit to Unrealized Loss - NI for $2,000 O Debit to Unrealized Loss - NI for $6,000 O Debit to Unrealized Loss - NI for $8,000
Investment in Trading and AFS Securities A company purchases debt securities for $100,000 at the beginning of 2022. It classifies as trading securities and $60,000 as AFS securities. It sells the securities in 2023. Required For each of the following scenarios, indicate the net effect on income and other comprehensive income in each year 2022 and 2023. In each case, any unrealized decline in value below cost is expected to be recovered and is attributed to market factors. a. Fair value, end of 2022 Selling price, 2023 Note: Use a negative sign with an answer to indicate the net effect amount decreases Income or OCI. Income OCI 5,000 ✓ (1,000) * End of 2022 $ 2023 b. Trading securities AFS securities $38,000 $65,000 43,000 64,000 Fair value, end of 2022 Selling price, 2023 (2,000)✓ $ 5,000 x End of 2022 $ 2023 Trading securities AFS securities $45,000 $56,000 42,000 68,000 Note: Use a negative sign with an answer to indicate the net effect amount decreases Income or OCI. OCI (4,000)✓ 0…
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