Requirement 2. Prepare a partial balance sheet for Thyme's Vince investment as of December 31, 2018.Use the partial balance sheet below to show how to report the investment on Thyme's balance sheet at December 31, 2018. (Use a minus sign or parentheses to enter a loss. If a box is not used in the balance sheet, leave the box empty; do not sect a label or enter a zero.) ### Educational Transcription: Thyme Investments Balance Sheet (Partial)**Thyme Investments****Balance Sheet (Partial)** **December 31, 2018**- **Current Assets:** (Dropdown menu available for selection)- **Long-term Assets:** (Input field for details)- **Stockholders' Equity:** (Input field for details)- **Accumulated Other Comprehensive Income:** (Input field for details)This partial balance sheet represents a snapshot of Thyme Investments' financial position as of December 31, 2018. It includes sections for current assets, long-term assets, stockholders' equity, and accumulated other comprehensive income. These segments are vital for assessing the company's financial health and guiding investment decisions. ### 2018 Investment Details**Transaction Overview:**- **Purchase of Bonds:** - Purchased Vince Company's bond with a face value of $525,000. - Classified as an available-for-sale investment. - The bond has an annual interest rate of 6%, payable on June 30 and December 31. - Maturity Date: December 31, 2021. - Management intends to retain the bonds for several years.**Timeline of Events:**- **January 5:** - The initial purchase of the bond.- **June 30:** - Received an interest payment from Vince Company.- **December 31:** - Received a second interest payment from Vince Company. - Adjusted the investment to its current market value of $518,500, indicating a change in the bond's market value.This data shows the bond's financial activities and how its valuation and returns are managed throughout the year.

Available-for-sale securities: Available for sale investments are carried on the balance sheet at their fair value and any change in fair value between two reporting dates is taken to the shareholders' equity as a separate component which is normally called 'changes in fair value of available for sale investments'. If the fair value of an investment increases, the carrying amount of the investments is debited and the 'changes in fair value of AFS investments' (equity) are credited. If the fair value of the investments decreases, the carrying amount of the investments is decreased and the changes in the fair value of AFS investments (equity) are debited. Thyme Investments Balance Sheet (partial) December 31, 2018 Particulars Amount Current Assets: Cash $31,500 Long-term Assets: Investment available for sale $518,500 Shareholders equity: Accumulated other comprehensive income: Loss on available-for-sale securities ($525,000 - $518,500) ($6,500)

Answered: Thyme Investments Balance Sheet…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Question

Requirement 2. Prepare a partial balance sheet for Thyme's Vince investment as of December 31, 2018. Use the partial balance sheet below to show how to report the investment on Thyme's balance sheet at December 31, 2018. (Use a minus sign or parentheses to enter a loss. If a box is not used in the balance sheet, leave the box empty; do not sect a label or enter a zero.)

### Educational Transcription: Thyme Investments Balance Sheet (Partial)

**Thyme Investments**

**Balance Sheet (Partial)**
**December 31, 2018**

- **Current Assets:**
(Dropdown menu available for selection)

- **Long-term Assets:**
(Input field for details)

- **Stockholders' Equity:**
(Input field for details)

- **Accumulated Other Comprehensive Income:**
(Input field for details)

This partial balance sheet represents a snapshot of Thyme Investments' financial position as of December 31, 2018. It includes sections for current assets, long-term assets, stockholders' equity, and accumulated other comprehensive income. These segments are vital for assessing the company's financial health and guiding investment decisions.

### 2018 Investment Details

**Transaction Overview:**

- **Purchase of Bonds:**
- Purchased Vince Company's bond with a face value of $525,000.
- Classified as an available-for-sale investment.
- The bond has an annual interest rate of 6%, payable on June 30 and December 31.
- Maturity Date: December 31, 2021.
- Management intends to retain the bonds for several years.

**Timeline of Events:**

- **January 5:**
- The initial purchase of the bond.

- **June 30:**
- Received an interest payment from Vince Company.

- **December 31:**
- Received a second interest payment from Vince Company.
- Adjusted the investment to its current market value of $518,500, indicating a change in the bond's market value.

This data shows the bond's financial activities and how its valuation and returns are managed throughout the year.

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

Expert Solution

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions