[The following information applies to the questions displayed below.] The accounting records of Jamaican Importers, Incorporated, at January 1, 2024, included the following: Assets: Investment in IBM common shares $ 1,895,000 Less: Fair value adjustment (200, 000) $ 1,695,000 No changes occurred during 2024 in the investment portfolio. Required: 1. Prepare appropriate adjusting entry(s) at December 31, 2024, assuming the fair value of the IBM common shares was $1,331,000.

[The following information applies to the questions displayed below.] The accounting records of Jamaican Importers, Incorporated, at January 1, 2024, included the following: Assets: Investment in IBM common shares $ 1,895,000 Less: Fair value adjustment (200, 000) $ 1,695,000 No changes occurred during 2024 in the investment portfolio. Required: 1. Prepare appropriate adjusting entry(s) at December 31, 2024, assuming the fair value of the IBM common shares was $1,331,000.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Samoa Limited is preparing its statement of financial position as of December 31, 2023. The following financial information is extracted from the ledger:- Land $340,000; Buildings $320,000; Accumulated depreciation - Buildings $90,000; Patents $180,000; Investment property $510,000; Ordinary share capital $870,000; Retained earnings $163,000; Revaluation reserve $66,000. Additional information is available:- a. Notes payable $560,000 issued on December 31, 2023. The notes will be paid in cash installments of $ 53,000 each on Dec. 31. The first installment (principal repayment $50,000, interest expense $3,000) will be paid on December 31, 2024. b. Prepaid rent of $ 45,000, covering January 1, 2024 to June 30, 2025. C. d. e. f. Unearned revenues $36,000 for services to be performed in 2024. Investment of $150,000 in the US treasury bills. The maturity date will be January 20, 2024. Investment in Gabon's shares is $240,000. The company plans to sell half of the shares by 2024. The…
At December 31, 2020, the cost and fair value trading securities for Crane, Inc. are as follows. Security Cost Fair Value A $18,800 $17,800 B 13,100 14,800 C 22,400 19,700 $54,300 $52,300 (a) Prepare the adjusting entry at December 31, 2020, to report the securities at fair value. (Credit account titles are automatically indented when the 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. List debit entry before credit entry.)
The following information is available for Sheridan Company at December 31, 2020, regarding its investments. Securities Cost Fair Value 2,600 shares of Myers Corporation Common Stock $ 36,900 $ 46,200 1,200 shares of Cole Incorporated Preferred Stock 23,600 21,100 $ 60,500 $ 67,300 (a) Prepare the adjusting entry (if any) for 2020, assuming no balance in the Fair Value Adjustment account at January 1, 2020. Neither of Sheridan’s investments result in significant influence. (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.) Account Titles and Explanation Debit Credit
Exercise 12-17 (Algo) Equity investments; fair value through net income [LO12-5] [The following information applies to the questions displayed below.] The accounting records of Jamaican Importers, Inc., at January 1, 2021, included the following: Assets: Investment in IBM common shares Less: Fair value adjustment No changes occurred during 2021 in the investment portfolio. Exercise 12-17 (Algo) Part 1 Required: 1. Prepare appropriate adjusting entry(s) at December 31, 2021, assuming the fair value of the IBM common shares was: $1,187,00 no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet < 1 $1,395,000 (150,000) $1,245,000 Record the fair value adjustment assuming the fair value of the IBM common shares was $1,187,000.
On January 1, 2019, Parker, Inc., a U.S.-based firm, acquired 100 percent of Suffolk PLC located in Great Britain for consideration paid of 52,000,000 British pounds (£), which was equal to fair value. The excess of fair value over book value is attributable to land (part of property, plant, and equipment) and is not subject to depreciation. Parker accounts for its investment in Suffolk at cost. On January 1, 2019, Suffolk reported the following balance sheet: Cash Accounts receivable $ 2,000,000 Accounts payable 3,000,000 Long-term debt 14,000,000 Common stock 40,000,000 Retained earnings $59,000,000 $ 1,000,000 $,000,000 44,000,000 6,000,000 Inventory Property, plant, and equipment (net) $59,000,000 Suffolk's 2019 income was recorded at £2,000,000. It declared and paid no dividends in 2019. On December 31, 2020, two years after the date of acquisition, Suffolk submitted the following trial balance to Parker for consolidation: Page 537 Cash $ 1,500,000 Accounts Receivable 5,200,000…
SEE SCREENSHOT ATTACHED Required: a) Compute the effects of these investments on Simpson’s reported sales, net income, and cashflows for each of the years 2004 and 2005. b) Compute the carrying (book) value of Simpson’s investment in Bailey as of December 31, 2004, and December 31, 2005. Identify the U.S. GAAP-based accounting method Simpson would use to account for its inter corporate investment in Bailey for 2006. Give two reasons this accounting method must/should be used. for reference check b) book value, 12/31/2005, $3,600,000
BBB Company had the following assets at December 31, 2022: Cash (of which P25,000 is earmarked for the acquisition of equipment) - P490,000 Trading Securities (including P200,000 investment in FVTOCI) - P380, 000 Accounts Receivable, net (including P500,000 due from an officer on December 31, 2024) - P1, 250,000 Non-Trade Notes Receivable (due in equal semi-annual installments of P50, 000 every March 1 and September 1) - P300,000 Merchandise Inventory - P900, 000 Prepaid Expenses - P80,000 Plant and Equipment, net - P3,750,000 How much is the Total Current Assets at December 31, 2022? How much is the Total Non - Current Assets at December 31, 2022?
Kk95.
A US company, acquired an interest in Kamins Co, a foreign company in March 2017, when 1 FC equaled $1.52. Kamins is a foreign company whose functional currency is the FC. The condensed preclosing comparative trial balance for Kamins for the year ended December 31, 2019, is a follows:
Subject: acounting
Solve and explain why it is the answer.
Page Ltd. is an investment management firm that had, at the beginning of the current year on January 1, 2021, a balance of $128,000 in its Trading Investments account (using the fair value through profit or loss model) and a balance of $485,000 in its Investment in Associates account (using the equity method). At the end of the year, these account balances were $147,000 and $577,000, respectively. During the year, dividends of $64,000 were received from associates while $9,000 was received from trading investments. In addition, the company purchased investments in associates and trading investments for cash of $115,000 and $55,000, respectively. Also, during 2021, the company received $43,000 when it sold trading investments that it carried at $27,000. (a) List the accounts that Page will show on its 2021 statement of income pertaining to its investments. Indicate vhere these accounts will appear on the statement of income. (Enter loss using either a negative sign preceding the number…