IFRS: International Financial Reporting Standard is abbreviated as IFRS. The IFRS is set up to bring a standard global language in accounting, so that the other firms across the globe can understand the accounting term of all other businesses. Investment : The act of allocating money to buy a monetary asset, in order to generate wealth in the future is referred to as investment. Held-to-maturity security : The debt securities which are held by the investor with the intent to hold the investment till its maturity are referred to as held-to-maturity securities. Available-for-sale (AFS) securities : These are short-term or long-term investments in debt and equity securities with an intention of holding the investment for some strategic purposes like meeting liquidity needs, or manage interest risk. Other-than-temporary (OTT) impairment : When the market value of an investment declines to a value lower than its cost, it is referred to as OTT impairment. The OTT impairment is considered as permanent loss and the loss is recorded as decrease in net income or earnings. Unrealized holding gains and losses : These are gains and losses which are unrealized and are the result of changes in cost and fair values of the investment for the period the investment is held. Journal entry : Journal entry is a set of economic events which can be measured in monetary terms. These are recorded chronologically and systematically. Debit and credit rules: Debit an increase in asset account, increase in expense account, decrease in liability account, and decrease in stockholders’ equity accounts. Credit decrease in asset account, increase in revenue account, increase in liability account, and increase in stockholders’ equity accounts. To Journalize : The investment made by Company F, in Company J assuming it to be held-to-maturity securities, as on December 31, 2016.

Question

Want to see the full answer?

Answer 1

Question

Chapter 12, Problem 12.31E

a)

To determine

IFRS: International Financial Reporting Standard is abbreviated as IFRS. The IFRS is set up to bring a standard global language in accounting, so that the other firms across the globe can understand the accounting term of all other businesses.

Investment: The act of allocating money to buy a monetary asset, in order to generate wealth in the future is referred to as investment.

Held-to-maturity security: The debt securities which are held by the investor with the intent to hold the investment till its maturity are referred to as held-to-maturity securities.

Available-for-sale (AFS) securities: These are short-term or long-term investments in debt and equity securities with an intention of holding the investment for some strategic purposes like meeting liquidity needs, or manage interest risk.

Other-than-temporary (OTT) impairment: When the market value of an investment declines to a value lower than its cost, it is referred to as OTT impairment. The OTT impairment is considered as permanent loss and the loss is recorded as decrease in net income or earnings.

Unrealized holding gains and losses: These are gains and losses which are unrealized and are the result of changes in cost and fair values of the investment for the period the investment is held.

Journal entry: Journal entry is a set of economic events which can be measured in monetary terms. These are recorded chronologically and systematically.

Debit and credit rules:

Debit an increase in asset account, increase in expense account, decrease in liability account, and decrease in stockholders’ equity accounts.

Credit decrease in asset account, increase in revenue account, increase in liability account, and increase in stockholders’ equity accounts.

To Journalize: The investment made by Company F, in Company J assuming it to be held-to-maturity securities, as on December 31, 2016.

b)

To determine

To Journalize: The investment made by Company F, in Company J assuming it to be held-to-maturity securities, as on December 31, 2017.

c)

To determine

To Journalize: The investment made by Company F, in Company J assuming it to be available for sale securities, as on December 31, 2016.

d)

To determine

To Journalize: The investment made by Company F, in Company J assuming it to be held-to-maturity securities, as on December 31, 2017.

e)

To determine

To Journalize: The investment made by Company F, in Company J assuming it to be equity investment rather than debt investment, as on December 31, 2017.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Students have asked these similar questions

According to the accrual method of accounting, businesses make adjusting entries to ensure that their financial statements are correctly depicting their financial situation and performance. No matter when cash transactions take place, adjusting entries are required to record revenues when they are generated and expenses when they are incurred (Weygandt et al., 2022). In order to guarantee that financial statements present an accurate and impartial picture of their company's financial health, these entries help in bringing financial records into compliance with the revenue recognition and matching standards. In order to account for things like accumulated revenues, accrued expenses, depreciation, and prepaid expenses, adjusting entries are usually made at the conclusion of an accounting period prior to the preparation of financial statements (Kieso et al., 2020). By implementing these changes, businesses avoid making false representations in their financial reports, which enables…

Required information Skip to question [The following information applies to the questions displayed below.]Brianna's Boutique has the following transactions related to its top-selling Gucci purse for the month of October. Brianna's Boutique uses a periodic inventory system. Date Transactions Units Unit Cost Total Cost October 1 Beginning inventory 6 $830 $4,980 October 4 Sale 4 October 10 Purchase 5 840 4,200 October 13 Sale 3 October 20 Purchase 4 850 3,400 October 28 Sale 7 October 30 Purchase 6 860 5,160 $17,740 2. Using FIFO, calculate ending inventory and cost of goods sold at October 31.

Why do companies make adjusting entries? When are adjusting entries made and at what point in the accounting process?

Answer 2

Question

Chapter 12, Problem 12.31E

a)

To determine

IFRS: International Financial Reporting Standard is abbreviated as IFRS. The IFRS is set up to bring a standard global language in accounting, so that the other firms across the globe can understand the accounting term of all other businesses.

Investment: The act of allocating money to buy a monetary asset, in order to generate wealth in the future is referred to as investment.

Held-to-maturity security: The debt securities which are held by the investor with the intent to hold the investment till its maturity are referred to as held-to-maturity securities.

Available-for-sale (AFS) securities: These are short-term or long-term investments in debt and equity securities with an intention of holding the investment for some strategic purposes like meeting liquidity needs, or manage interest risk.

Other-than-temporary (OTT) impairment: When the market value of an investment declines to a value lower than its cost, it is referred to as OTT impairment. The OTT impairment is considered as permanent loss and the loss is recorded as decrease in net income or earnings.

Unrealized holding gains and losses: These are gains and losses which are unrealized and are the result of changes in cost and fair values of the investment for the period the investment is held.

Journal entry: Journal entry is a set of economic events which can be measured in monetary terms. These are recorded chronologically and systematically.

Debit and credit rules:

Debit an increase in asset account, increase in expense account, decrease in liability account, and decrease in stockholders’ equity accounts.

Credit decrease in asset account, increase in revenue account, increase in liability account, and increase in stockholders’ equity accounts.

To Journalize: The investment made by Company F, in Company J assuming it to be held-to-maturity securities, as on December 31, 2016.

b)

To determine

To Journalize: The investment made by Company F, in Company J assuming it to be held-to-maturity securities, as on December 31, 2017.

c)

To determine

To Journalize: The investment made by Company F, in Company J assuming it to be available for sale securities, as on December 31, 2016.

d)

To determine

To Journalize: The investment made by Company F, in Company J assuming it to be held-to-maturity securities, as on December 31, 2017.

e)

To determine

To Journalize: The investment made by Company F, in Company J assuming it to be equity investment rather than debt investment, as on December 31, 2017.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 3

Question

Chapter 12, Problem 12.31E

a)

To determine

IFRS: International Financial Reporting Standard is abbreviated as IFRS. The IFRS is set up to bring a standard global language in accounting, so that the other firms across the globe can understand the accounting term of all other businesses.

Investment: The act of allocating money to buy a monetary asset, in order to generate wealth in the future is referred to as investment.

Held-to-maturity security: The debt securities which are held by the investor with the intent to hold the investment till its maturity are referred to as held-to-maturity securities.

Available-for-sale (AFS) securities: These are short-term or long-term investments in debt and equity securities with an intention of holding the investment for some strategic purposes like meeting liquidity needs, or manage interest risk.

Other-than-temporary (OTT) impairment: When the market value of an investment declines to a value lower than its cost, it is referred to as OTT impairment. The OTT impairment is considered as permanent loss and the loss is recorded as decrease in net income or earnings.

Unrealized holding gains and losses: These are gains and losses which are unrealized and are the result of changes in cost and fair values of the investment for the period the investment is held.

Journal entry: Journal entry is a set of economic events which can be measured in monetary terms. These are recorded chronologically and systematically.

Debit and credit rules:

Debit an increase in asset account, increase in expense account, decrease in liability account, and decrease in stockholders’ equity accounts.

Credit decrease in asset account, increase in revenue account, increase in liability account, and increase in stockholders’ equity accounts.

To Journalize: The investment made by Company F, in Company J assuming it to be held-to-maturity securities, as on December 31, 2016.

b)

To determine

To Journalize: The investment made by Company F, in Company J assuming it to be held-to-maturity securities, as on December 31, 2017.

c)

To determine

To Journalize: The investment made by Company F, in Company J assuming it to be available for sale securities, as on December 31, 2016.

d)

To determine

To Journalize: The investment made by Company F, in Company J assuming it to be held-to-maturity securities, as on December 31, 2017.

e)

To determine

To Journalize: The investment made by Company F, in Company J assuming it to be equity investment rather than debt investment, as on December 31, 2017.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 4

Question

Chapter 12, Problem 12.31E

a)

To determine

IFRS: International Financial Reporting Standard is abbreviated as IFRS. The IFRS is set up to bring a standard global language in accounting, so that the other firms across the globe can understand the accounting term of all other businesses.

Investment: The act of allocating money to buy a monetary asset, in order to generate wealth in the future is referred to as investment.

Held-to-maturity security: The debt securities which are held by the investor with the intent to hold the investment till its maturity are referred to as held-to-maturity securities.

Available-for-sale (AFS) securities: These are short-term or long-term investments in debt and equity securities with an intention of holding the investment for some strategic purposes like meeting liquidity needs, or manage interest risk.

Other-than-temporary (OTT) impairment: When the market value of an investment declines to a value lower than its cost, it is referred to as OTT impairment. The OTT impairment is considered as permanent loss and the loss is recorded as decrease in net income or earnings.

Unrealized holding gains and losses: These are gains and losses which are unrealized and are the result of changes in cost and fair values of the investment for the period the investment is held.

Journal entry: Journal entry is a set of economic events which can be measured in monetary terms. These are recorded chronologically and systematically.

Debit and credit rules:

Debit an increase in asset account, increase in expense account, decrease in liability account, and decrease in stockholders’ equity accounts.

Credit decrease in asset account, increase in revenue account, increase in liability account, and increase in stockholders’ equity accounts.

To Journalize: The investment made by Company F, in Company J assuming it to be held-to-maturity securities, as on December 31, 2016.

b)

To determine

To Journalize: The investment made by Company F, in Company J assuming it to be held-to-maturity securities, as on December 31, 2017.

c)

To determine

To Journalize: The investment made by Company F, in Company J assuming it to be available for sale securities, as on December 31, 2016.

d)

To determine

To Journalize: The investment made by Company F, in Company J assuming it to be held-to-maturity securities, as on December 31, 2017.

e)

To determine

To Journalize: The investment made by Company F, in Company J assuming it to be equity investment rather than debt investment, as on December 31, 2017.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 5

Chapter 12, Problem 12.31E

a)

To determine

IFRS: International Financial Reporting Standard is abbreviated as IFRS. The IFRS is set up to bring a standard global language in accounting, so that the other firms across the globe can understand the accounting term of all other businesses.

Investment: The act of allocating money to buy a monetary asset, in order to generate wealth in the future is referred to as investment.

Held-to-maturity security: The debt securities which are held by the investor with the intent to hold the investment till its maturity are referred to as held-to-maturity securities.

Available-for-sale (AFS) securities: These are short-term or long-term investments in debt and equity securities with an intention of holding the investment for some strategic purposes like meeting liquidity needs, or manage interest risk.

Other-than-temporary (OTT) impairment: When the market value of an investment declines to a value lower than its cost, it is referred to as OTT impairment. The OTT impairment is considered as permanent loss and the loss is recorded as decrease in net income or earnings.

Unrealized holding gains and losses: These are gains and losses which are unrealized and are the result of changes in cost and fair values of the investment for the period the investment is held.

Journal entry: Journal entry is a set of economic events which can be measured in monetary terms. These are recorded chronologically and systematically.

Debit and credit rules:

Debit an increase in asset account, increase in expense account, decrease in liability account, and decrease in stockholders’ equity accounts.

Credit decrease in asset account, increase in revenue account, increase in liability account, and increase in stockholders’ equity accounts.

To Journalize: The investment made by Company F, in Company J assuming it to be held-to-maturity securities, as on December 31, 2016.

b)

To determine

To Journalize: The investment made by Company F, in Company J assuming it to be held-to-maturity securities, as on December 31, 2017.

c)

To determine

To Journalize: The investment made by Company F, in Company J assuming it to be available for sale securities, as on December 31, 2016.

d)

To determine

To Journalize: The investment made by Company F, in Company J assuming it to be held-to-maturity securities, as on December 31, 2017.

e)

To determine

To Journalize: The investment made by Company F, in Company J assuming it to be equity investment rather than debt investment, as on December 31, 2017.

Answer 6

Chapter 12, Problem 12.31E

a)

To determine

IFRS: International Financial Reporting Standard is abbreviated as IFRS. The IFRS is set up to bring a standard global language in accounting, so that the other firms across the globe can understand the accounting term of all other businesses.

Investment: The act of allocating money to buy a monetary asset, in order to generate wealth in the future is referred to as investment.

Held-to-maturity security: The debt securities which are held by the investor with the intent to hold the investment till its maturity are referred to as held-to-maturity securities.

Available-for-sale (AFS) securities: These are short-term or long-term investments in debt and equity securities with an intention of holding the investment for some strategic purposes like meeting liquidity needs, or manage interest risk.

Other-than-temporary (OTT) impairment: When the market value of an investment declines to a value lower than its cost, it is referred to as OTT impairment. The OTT impairment is considered as permanent loss and the loss is recorded as decrease in net income or earnings.

Unrealized holding gains and losses: These are gains and losses which are unrealized and are the result of changes in cost and fair values of the investment for the period the investment is held.

Journal entry: Journal entry is a set of economic events which can be measured in monetary terms. These are recorded chronologically and systematically.

Debit and credit rules:

Debit an increase in asset account, increase in expense account, decrease in liability account, and decrease in stockholders’ equity accounts.

Credit decrease in asset account, increase in revenue account, increase in liability account, and increase in stockholders’ equity accounts.

To Journalize: The investment made by Company F, in Company J assuming it to be held-to-maturity securities, as on December 31, 2016.

Answer 7

Chapter 12, Problem 12.31E

a)

To determine

IFRS: International Financial Reporting Standard is abbreviated as IFRS. The IFRS is set up to bring a standard global language in accounting, so that the other firms across the globe can understand the accounting term of all other businesses.

Investment: The act of allocating money to buy a monetary asset, in order to generate wealth in the future is referred to as investment.

Held-to-maturity security: The debt securities which are held by the investor with the intent to hold the investment till its maturity are referred to as held-to-maturity securities.

Available-for-sale (AFS) securities: These are short-term or long-term investments in debt and equity securities with an intention of holding the investment for some strategic purposes like meeting liquidity needs, or manage interest risk.

Other-than-temporary (OTT) impairment: When the market value of an investment declines to a value lower than its cost, it is referred to as OTT impairment. The OTT impairment is considered as permanent loss and the loss is recorded as decrease in net income or earnings.

Unrealized holding gains and losses: These are gains and losses which are unrealized and are the result of changes in cost and fair values of the investment for the period the investment is held.

Journal entry: Journal entry is a set of economic events which can be measured in monetary terms. These are recorded chronologically and systematically.

Debit and credit rules:

Debit an increase in asset account, increase in expense account, decrease in liability account, and decrease in stockholders’ equity accounts.

Credit decrease in asset account, increase in revenue account, increase in liability account, and increase in stockholders’ equity accounts.

To Journalize: The investment made by Company F, in Company J assuming it to be held-to-maturity securities, as on December 31, 2016.

Answer 8

b)

To determine

To Journalize: The investment made by Company F, in Company J assuming it to be held-to-maturity securities, as on December 31, 2017.

Answer 9

b)

To determine

To Journalize: The investment made by Company F, in Company J assuming it to be held-to-maturity securities, as on December 31, 2017.

Answer 10

c)

To determine

To Journalize: The investment made by Company F, in Company J assuming it to be available for sale securities, as on December 31, 2016.

Answer 11

c)

To determine

To Journalize: The investment made by Company F, in Company J assuming it to be available for sale securities, as on December 31, 2016.

Answer 12

d)

To determine

To Journalize: The investment made by Company F, in Company J assuming it to be held-to-maturity securities, as on December 31, 2017.

Answer 13

d)

To determine

To Journalize: The investment made by Company F, in Company J assuming it to be held-to-maturity securities, as on December 31, 2017.

Answer 14

e)

To determine

To Journalize: The investment made by Company F, in Company J assuming it to be equity investment rather than debt investment, as on December 31, 2017.

Answer 15

e)

To determine

To Journalize: The investment made by Company F, in Company J assuming it to be equity investment rather than debt investment, as on December 31, 2017.

Answer 16

Expert Solution & Answer

Answer 17

Expert Solution & Answer

Answer 18

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 19

Ch. 12 - Prob. 12.1Q Ch. 12 - When market rates of interest rise after a...Ch. 12 - Does GAAP distinguish between fair values that are...Ch. 12 - When a debt investment is acquired to be held for...Ch. 12 - Prob. 12.5Q Ch. 12 - What is comprehensive income? Its composition...Ch. 12 - Why are holding gains and losses treated...Ch. 12 - Prob. 12.8Q Ch. 12 - Prob. 12.9Q Ch. 12 - Prob. 12.10Q

To Journalize: The investment made by Company F, in Company J assuming it to be held-to-maturity securities, as on December 31, 2017.

To Journalize: The investment made by Company F, in Company J assuming it to be available for sale securities, as on December 31, 2016.

To Journalize: The investment made by Company F, in Company J assuming it to be held-to-maturity securities, as on December 31, 2017.

To Journalize: The investment made by Company F, in Company J assuming it to be equity investment rather than debt investment, as on December 31, 2017.

Want to see the full answer?

Chapter 12 Solutions