Presented below is information related to the purchases of common stock by Bridgeport Company during 2025.Fair Value(at December 31)$68,000306,000194,000$568,000Investment in Arroyo Company stockInvestment in Lee Corporation stockInvestment in Woods Inc. stockTotal(a)(b)Cost(at purchase date)$90,000252,000(Assume a zero balance for any Fair Value Adjustment account at the beginning of 2025.)184,000(b)$526,000What entry would Bridgeport make at December 31, 2025, to record the investment in Arroyo Company stock if it choosesto report this security using the fair value option?No. Account Titles and Explanation(a)What entry would Bridgeport make at December 31, 2025, to record the investments in the Lee and Woods corporations,assuming that Bridgeport did not select the fair value option for these investments?(List all debit entries before credit entries. Credit account titles are automatically indented when amount is entered. Do not indent manually. Ifno entry is required, select "No Entry" for the account titles and enter O for the amounts.)DebitCredit

It has been given in the question that the balance on the account of fair value adjustment at the…

Answered: What entry would Bridgeport make at…

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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a. Provide the journal entry to adjust the trading security portfolio to fair value on December 31, 2016. b. Assume the market prices of the portfolio were the same on December 31, 2017, as they were on December 31, 2016. What would be the journal entry to adjust the portfolio to fair value?
Which of the following stock investments should be accounted for using the fair value method? a.investments between 20% and 50% ownership b.investments of less than 20% ownership c.investments of over 50% ownership d.all investments of less 50% ownership
show you work which of the following is not correct in regard to trading investments? a. They are held with the intention of selling them in a short period of time. b. Unrealized holding gains and losses are reported as part of net income. c. Any discount or premium is nott amortized d. All of these answer choices are correct.
What causes a gain or loss on the sale of a bond investment? Group of answer choices when the selling company negotiates a better price when the selling price of the bond differs from the book value (cost) of the bond when the selling company has unamortized discounts when the selling company has unamortized premiums
Which type of security does it refer to? “First pay two times the Original Purchase Price on each share of Series A Preferred. The balance of any proceeds shall be distributed pro rata to holders of Common Stock.”
How is the potentially dilutive effect of convertible preferred stock reflected in EPS calculations by the if-converted method? How is this different from the way convertible bonds are considered?
Western Die-Casting Company holds an investment in unsecured bonds of LGB Heating Equipment, Inc. When the investment was acquired, management’s intention was to hold the bonds for resale. Now management has the positive intent and ability to hold the bonds to maturity. How should the reclassification of the investment be accounted for?
Sl acquired shares that are not part of a held for trading portfolio. The shares are listed on a public stock exchange such that fair value information is readily available. Sl management would like to report the shares at fair value on the SFP, however, management does not want holding gains and losses to result in income volatility. How should Si management classify the shares? SI reports under IFRS. Multiple Choice FVTPL FVTOCI Amortized cost Cost
What investment is eligible to be held within a RRIF? • a) shares of a privately owned corporation O b) gold bars • c) commodity futures contracts O d) real estate
Which of the following is NOT true? a. If the choice is cash, a liability has to be recorded until the SARS are exercised. b. Stock options will almost always have value, whereas restricted stock may not. C. An option-pricing model is not used for valuing restricted stock. d. An executive receiving restricted stock is given the stock prior to vesting.
When securities are allotted to institutional investors & some selected individuals is referred to Select one: a None b Offer through the prospectus c Offer for sale d Initial public offer e. Private place
Explain the fair value adjustment procedure for short-terminvestments classified as available-for-sale securities.

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