Trading Investments: Trading investments are the investments in debt or equity securities where the investor holds less than 20% of the voting stock. The investor wishes to sell these investments at a short notice like in a few days, week, or months to generate some profit out of it. They are treated as current assets. To journalize: The acquisition of Company M’s common stock on November 3, 2017.

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Answer 1

Question

Chapter 10, Problem 10.23CP

1.

To determine

Trading Investments:

Trading investments are the investments in debt or equity securities where the investor holds less than 20% of the voting stock. The investor wishes to sell these investments at a short notice like in a few days, week, or months to generate some profit out of it. They are treated as current assets.

To journalize: The acquisition of Company M’s common stock on November 3, 2017.

2.

To determine

To journalize: Any entries required at December 31, 2017.

3.

To determine

To journalize: The sale of Company M’s stock for $15.50 per share by Consulting D on January 25, 2018.

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Subject: acounting

Pine Company makes an investment in Holt Company. Journalize the following transactions assuming that Pine Company uses (a) the fair value method and (b) the equity method for its investment in Holt Company: 1) On Jan. 1, 2017, Pine bought 30% of Holt’s common stock. Total book value of all Holt’s common stock was $800,000 on this date. 2) During 2017, Holt reported $40,000 of net income. 3) During 2017, Holt paid $20,000 of dividends

Answer 2

Question

Chapter 10, Problem 10.23CP

1.

To determine

Trading Investments:

Trading investments are the investments in debt or equity securities where the investor holds less than 20% of the voting stock. The investor wishes to sell these investments at a short notice like in a few days, week, or months to generate some profit out of it. They are treated as current assets.

To journalize: The acquisition of Company M’s common stock on November 3, 2017.

2.

To determine

To journalize: Any entries required at December 31, 2017.

3.

To determine

To journalize: The sale of Company M’s stock for $15.50 per share by Consulting D on January 25, 2018.

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Answer 3

Question

Chapter 10, Problem 10.23CP

1.

To determine

Trading Investments:

Trading investments are the investments in debt or equity securities where the investor holds less than 20% of the voting stock. The investor wishes to sell these investments at a short notice like in a few days, week, or months to generate some profit out of it. They are treated as current assets.

To journalize: The acquisition of Company M’s common stock on November 3, 2017.

2.

To determine

To journalize: Any entries required at December 31, 2017.

3.

To determine

To journalize: The sale of Company M’s stock for $15.50 per share by Consulting D on January 25, 2018.

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Answer 4

Question

Chapter 10, Problem 10.23CP

1.

To determine

Trading Investments:

Trading investments are the investments in debt or equity securities where the investor holds less than 20% of the voting stock. The investor wishes to sell these investments at a short notice like in a few days, week, or months to generate some profit out of it. They are treated as current assets.

To journalize: The acquisition of Company M’s common stock on November 3, 2017.

2.

To determine

To journalize: Any entries required at December 31, 2017.

3.

To determine

To journalize: The sale of Company M’s stock for $15.50 per share by Consulting D on January 25, 2018.

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Answer 5

Chapter 10, Problem 10.23CP

1.

To determine

Trading Investments:

Trading investments are the investments in debt or equity securities where the investor holds less than 20% of the voting stock. The investor wishes to sell these investments at a short notice like in a few days, week, or months to generate some profit out of it. They are treated as current assets.

To journalize: The acquisition of Company M’s common stock on November 3, 2017.

2.

To determine

To journalize: Any entries required at December 31, 2017.

3.

To determine

To journalize: The sale of Company M’s stock for $15.50 per share by Consulting D on January 25, 2018.

Answer 6

Chapter 10, Problem 10.23CP

1.

To determine

Trading Investments:

Trading investments are the investments in debt or equity securities where the investor holds less than 20% of the voting stock. The investor wishes to sell these investments at a short notice like in a few days, week, or months to generate some profit out of it. They are treated as current assets.

To journalize: The acquisition of Company M’s common stock on November 3, 2017.

Answer 7

Chapter 10, Problem 10.23CP

1.

To determine

Trading Investments:

Trading investments are the investments in debt or equity securities where the investor holds less than 20% of the voting stock. The investor wishes to sell these investments at a short notice like in a few days, week, or months to generate some profit out of it. They are treated as current assets.

To journalize: The acquisition of Company M’s common stock on November 3, 2017.

Answer 8

2.

To determine

To journalize: Any entries required at December 31, 2017.

Answer 9

2.

To determine

To journalize: Any entries required at December 31, 2017.

Answer 10

3.

To determine

To journalize: The sale of Company M’s stock for $15.50 per share by Consulting D on January 25, 2018.

Answer 11

3.

To determine

To journalize: The sale of Company M’s stock for $15.50 per share by Consulting D on January 25, 2018.

Answer 12

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Answer 13

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Answer 14

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Answer 15

Ch. 10 - Prob. 1QC Ch. 10 - Which of the following investments is most likely...Ch. 10 - If Intervale Railway invests 100,000 in 5% bonds...Ch. 10 - Prob. 4QC Ch. 10 - Prob. 5QC Ch. 10 - Prob. 6QC Ch. 10 - Prob. 7QC Ch. 10 - Harvard Co. purchased a trading investment on...Ch. 10 - Prob. 9QC Ch. 10 - Prob. 10QC

Solution Summary: The author explains that trading investments are investments in debt or equity securities where the investor holds less than 20% of the voting stock.

Concept explainers

To journalize: Any entries required at December 31, 2017.

To journalize: The sale of Company M’s stock for $15.50 per share by Consulting D on January 25, 2018.

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Chapter 10 Solutions