Use the following information for the Quick Study below. (Static) [The following information applies to the questions displayed below] On December 31, Reggit Company held the following short-term investments in its portfolio of available-for-sale debt securities. Reggit had no short-term investments in its prior accounting periods. Available for Sale Securities Verrizano Corporation bonds Preble Corporation nates Lucerne Company bonds i QS 15-9 (Static) Adjusting available-for-sale debt securities to fair value LO P3 Prepare the December 31 adjusting entry to report these investments at fair value Fair Value Adjustment Computation of fair value adjustment. General Journal Complete this question by entering your answers in the tabs below. Cost $ 89,600 70,600 86,500 Verrizano Corporation bonds Preble Corporation notes Luceme Company bonds Total Fair Value Adjustment Computation-Available for Sale Portfolio Unrealized Amount $ Cost Fair Value $ 91,600 62,900 83,100 Fair Value 89 600 $ 91,600 70 600 62.900 86.500 83,100 $ 246,700 $ 237,600 Unrealized Loss

Use the following information for the Quick Study below. (Static) [The following information applies to the questions displayed below] On December 31, Reggit Company held the following short-term investments in its portfolio of available-for-sale debt securities. Reggit had no short-term investments in its prior accounting periods. Available for Sale Securities Verrizano Corporation bonds Preble Corporation nates Lucerne Company bonds i QS 15-9 (Static) Adjusting available-for-sale debt securities to fair value LO P3 Prepare the December 31 adjusting entry to report these investments at fair value Fair Value Adjustment Computation of fair value adjustment. General Journal Complete this question by entering your answers in the tabs below. Cost $ 89,600 70,600 86,500 Verrizano Corporation bonds Preble Corporation notes Luceme Company bonds Total Fair Value Adjustment Computation-Available for Sale Portfolio Unrealized Amount $ Cost Fair Value $ 91,600 62,900 83,100 Fair Value 89 600 $ 91,600 70 600 62.900 86.500 83,100 $ 246,700 $ 237,600 Unrealized Loss

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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Reporting Long-Term Debt on the Balance Sheet Scott Corp. provides contracted home staging services to real estate agencies and their clients. Scott issued the following bonds in the current year: Required: Hide a. Prepare the balance sheet for 1,500 bonds with $1,000 face value which the market has valued at $45,000 below its face value. Scott Corp. Balance Sheet (Partial) $ Bonds payable, net $ Hide b. Prepare the balance sheet for 2,700 bonds with $1,000 face value which the market has valued at $85,000 above its face value. Scott Corp. Balance Sheet (Partial) $ Bonds payable, net $
On December 31, Reggit Company held the following short-term investments in its portfolio of availablefor- sale debt securities. Reggit had no short-term investments in its prior accounting periods. Prepare the December 31 adjusting entry to report these investments at fair value. Available-for-Sale Securities Cost Fair Value Verrizano Corporation bonds $89,600 $91,600 Preble Corporation notes 70,600 62,900 Lucerne Company bonds 86,500 83,100
[The following information applies to the questions displayed below.] Mead Incorporated began operations in Year 1. Following is a series of transactions and events involving its long-term debt investments in available-for-sale securities. Year 1 January 20 Purchased Johnson & Johnson bonds for $28,200. February 9 Purchased Sony notes for $64,890. Purchased Mattel bonds for $50,500. June 12 December 31 Fair values for debt in the portfolio are Johnson & Johnson, $33,500; Sony, $53,350; and Mattel, $58,750. Year 2 April 15 Sold all of the Johnson & Johnson bonds for $33,500. July 5 Sold all of the Mattel bonds for $42,850. July 22 Purchased Sara Lee notes for $20,500. August 19 Purchased Kodak bonds for $22,300. December 31 Fair values for debt in the portfolio are Kodak, $22,825; Sara Lee, $22,000; and Sony, $66,000. Year 3 February 27 Purchased Microsoft bonds for $159,800. June 21 Sold all of the Sony notes for $65,600. June 30 Purchased Black & Decker bonds for $60,400. August 3…
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Required information [The following information applies to the questions displayed below.] Kitty Company began operations in the current year and acquired short-term debt investments in trading securities. The year-end cost and fair values for its portfolio of these debt investments follow. Trading Securities Tesla Bonds Nike Bonds Cost Fair Value $ 15,600 24,800 6,200 $ 11,700 26,040 4,960 Ford Bonds Prepare the journal entry to record the December 31 year-end fair value adjustment for these debt securities. View transaction list Journal entry worksheet 1 Record the year-end adjustment to fair value, if any. Note: Enter debits before credits. Date General Journal Debit Credit December 31 Record entry Clear entry View general journal
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In its year end financial statements, Big Bank Corporation reports marketable debt securities of $416,099 million. The footnotes disclose that these securities have an amortized cost of $418,961 million. Which of the following is true? Select one: a. There are net unrealized losses of $2,862 million on these securities. b. These are trading securities. c. These are available-for-sale securities. d. Both A and C e. Both B and C
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