Fair value of Securities: When an investment is purchased, it is required to revalue the investment at the end of the year in order to make sure the fair value is correctly reflected in the financial statements. Fair value refers to the realizable value of the securities at the end of a reporting period. It can be viewed as the replacement cost of the securities if such securities were purchased today. If the cost of purchase is higher than the fair value of the investment at the time of revaluation, then the difference is debited to the fair value adjustments account. If the cost of purchase is lower than the fair value of the investment at the time of revaluation, then the difference is debited to the fair value adjustments account. Requirement 1: Cost basis compared to previous years amount

Question

Want to see the full answer?

Answer 1

Question

Chapter 15, Problem 3BTN

To determine

Concept Introduction:

Fair value of Securities:

When an investment is purchased, it is required to revalue the investment at the end of the year in order to make sure the fair value is correctly reflected in the financial statements.

Fair value refers to the realizable value of the securities at the end of a reporting period. It can be viewed as the replacement cost of the securities if such securities were purchased today.

If the cost of purchase is higher than the fair value of the investment at the time of revaluation, then the difference is debited to the fair value adjustments account.

If the cost of purchase is lower than the fair value of the investment at the time of revaluation, then the difference is debited to the fair value adjustments account.

Requirement 1:

Cost basis compared to previous years amount

To determine

Concept Introduction:

Long term Investments:

Long term investments are made by corporations in several avenues, such as Mutual funds, Government securities such as bonds, and commercial papers, Mortgage and Asset backed securities such as Real Estate Funds etc.

They represent steady income for the investor in the form of periodic interest payments or capital appreciation of the value of the investment.

They are often purchased are issued at par (at face value), at premium (at higher than face value) or at a discount (at lower than face value).

Requirement 2:

8 Types of investments held by Microsoft for the year ended 30 June, 2016.

To determine

Concept Introduction:

Fair value of Securities:

When an investment is purchased, it is required to revalue the investment at the end of the year in order to make sure the fair value is correctly reflected in the financial statements.

Fair value refers to the realizable value of the securities at the end of a reporting period. It can be viewed as the replacement cost of the securities if such securities were purchased today.

If the cost of purchase is higher than the fair value of the investment at the time of revaluation, then the difference is debited to the fair value adjustments account.

If the cost of purchase is lower than the fair value of the investment at the time of revaluation, then the difference is debited to the fair value adjustments account.

Requirement 3:

Unrealized gains and losses of Microsoft for the year ended 30 June, 2016.

To determine

Concept Introduction:

Fair value of Securities:

When an investment is purchased, it is required to revalue the investment at the end of the year in order to make sure the fair value is correctly reflected in the financial statements.

Fair value refers to the realizable value of the securities at the end of a reporting period. It can be viewed as the replacement cost of the securities if such securities were purchased today.

If the cost of purchase is higher than the fair value of the investment at the time of revaluation, then the difference is debited to the fair value adjustments account.

If the cost of purchase is lower than the fair value of the investment at the time of revaluation, then the difference is debited to the fair value adjustments account.

Requirement 4:

Cost basis compared to recorded amount for the year ended 30 June, 2016.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Students have asked these similar questions

Given thus option general accounting question

EXCELSIOR COMMUNITY COLLEGE HOSPITALITY MANAGEMENT ACCOUNING MID-SEMESTER ACCT4301 UNIT 2 Section A of this assessment is to be done on Canvas Section B Answer all questions in this section - round off your answers to two decimal places Instructions: Responses should be written on paper. Take a CLEAR, WELL-LIGHTED picture of each page, the upload to Canvas. 1. The following information relates to Moonlight Hotel 2018 2019 $ change % change Net sales 1,818,500 1,750,000 Cost of Goods Sold 1,005,500 996,000 Operating profit 813,000 754,000 Selling and administrative expenses 506,000 479,000 Income from operations 307,000 275,000 Other expenses and losses Interest expenses 18,000 19,000 Income before income taxes 289,000 256,000 Income tax expenses 86,700 77,000 Net Income 202,300 179,000 Required: i. Use the above information to prepare the comparative analysis income statement.

Please see an attachment for details general accounting question

Answer 2

Question

Chapter 15, Problem 3BTN

To determine

Concept Introduction:

Fair value of Securities:

When an investment is purchased, it is required to revalue the investment at the end of the year in order to make sure the fair value is correctly reflected in the financial statements.

Fair value refers to the realizable value of the securities at the end of a reporting period. It can be viewed as the replacement cost of the securities if such securities were purchased today.

If the cost of purchase is higher than the fair value of the investment at the time of revaluation, then the difference is debited to the fair value adjustments account.

If the cost of purchase is lower than the fair value of the investment at the time of revaluation, then the difference is debited to the fair value adjustments account.

Requirement 1:

Cost basis compared to previous years amount

To determine

Concept Introduction:

Long term Investments:

Long term investments are made by corporations in several avenues, such as Mutual funds, Government securities such as bonds, and commercial papers, Mortgage and Asset backed securities such as Real Estate Funds etc.

They represent steady income for the investor in the form of periodic interest payments or capital appreciation of the value of the investment.

They are often purchased are issued at par (at face value), at premium (at higher than face value) or at a discount (at lower than face value).

Requirement 2:

8 Types of investments held by Microsoft for the year ended 30 June, 2016.

To determine

Concept Introduction:

Fair value of Securities:

When an investment is purchased, it is required to revalue the investment at the end of the year in order to make sure the fair value is correctly reflected in the financial statements.

Fair value refers to the realizable value of the securities at the end of a reporting period. It can be viewed as the replacement cost of the securities if such securities were purchased today.

If the cost of purchase is higher than the fair value of the investment at the time of revaluation, then the difference is debited to the fair value adjustments account.

If the cost of purchase is lower than the fair value of the investment at the time of revaluation, then the difference is debited to the fair value adjustments account.

Requirement 3:

Unrealized gains and losses of Microsoft for the year ended 30 June, 2016.

To determine

Concept Introduction:

Fair value of Securities:

When an investment is purchased, it is required to revalue the investment at the end of the year in order to make sure the fair value is correctly reflected in the financial statements.

Fair value refers to the realizable value of the securities at the end of a reporting period. It can be viewed as the replacement cost of the securities if such securities were purchased today.

If the cost of purchase is higher than the fair value of the investment at the time of revaluation, then the difference is debited to the fair value adjustments account.

If the cost of purchase is lower than the fair value of the investment at the time of revaluation, then the difference is debited to the fair value adjustments account.

Requirement 4:

Cost basis compared to recorded amount for the year ended 30 June, 2016.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 3

Question

Chapter 15, Problem 3BTN

To determine

Concept Introduction:

Fair value of Securities:

When an investment is purchased, it is required to revalue the investment at the end of the year in order to make sure the fair value is correctly reflected in the financial statements.

Fair value refers to the realizable value of the securities at the end of a reporting period. It can be viewed as the replacement cost of the securities if such securities were purchased today.

If the cost of purchase is higher than the fair value of the investment at the time of revaluation, then the difference is debited to the fair value adjustments account.

If the cost of purchase is lower than the fair value of the investment at the time of revaluation, then the difference is debited to the fair value adjustments account.

Requirement 1:

Cost basis compared to previous years amount

To determine

Concept Introduction:

Long term Investments:

Long term investments are made by corporations in several avenues, such as Mutual funds, Government securities such as bonds, and commercial papers, Mortgage and Asset backed securities such as Real Estate Funds etc.

They represent steady income for the investor in the form of periodic interest payments or capital appreciation of the value of the investment.

They are often purchased are issued at par (at face value), at premium (at higher than face value) or at a discount (at lower than face value).

Requirement 2:

8 Types of investments held by Microsoft for the year ended 30 June, 2016.

To determine

Concept Introduction:

Fair value of Securities:

When an investment is purchased, it is required to revalue the investment at the end of the year in order to make sure the fair value is correctly reflected in the financial statements.

Fair value refers to the realizable value of the securities at the end of a reporting period. It can be viewed as the replacement cost of the securities if such securities were purchased today.

If the cost of purchase is higher than the fair value of the investment at the time of revaluation, then the difference is debited to the fair value adjustments account.

If the cost of purchase is lower than the fair value of the investment at the time of revaluation, then the difference is debited to the fair value adjustments account.

Requirement 3:

Unrealized gains and losses of Microsoft for the year ended 30 June, 2016.

To determine

Concept Introduction:

Fair value of Securities:

When an investment is purchased, it is required to revalue the investment at the end of the year in order to make sure the fair value is correctly reflected in the financial statements.

Fair value refers to the realizable value of the securities at the end of a reporting period. It can be viewed as the replacement cost of the securities if such securities were purchased today.

If the cost of purchase is higher than the fair value of the investment at the time of revaluation, then the difference is debited to the fair value adjustments account.

If the cost of purchase is lower than the fair value of the investment at the time of revaluation, then the difference is debited to the fair value adjustments account.

Requirement 4:

Cost basis compared to recorded amount for the year ended 30 June, 2016.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 4

Question

Chapter 15, Problem 3BTN

To determine

Concept Introduction:

Fair value of Securities:

When an investment is purchased, it is required to revalue the investment at the end of the year in order to make sure the fair value is correctly reflected in the financial statements.

Fair value refers to the realizable value of the securities at the end of a reporting period. It can be viewed as the replacement cost of the securities if such securities were purchased today.

If the cost of purchase is higher than the fair value of the investment at the time of revaluation, then the difference is debited to the fair value adjustments account.

If the cost of purchase is lower than the fair value of the investment at the time of revaluation, then the difference is debited to the fair value adjustments account.

Requirement 1:

Cost basis compared to previous years amount

To determine

Concept Introduction:

Long term Investments:

Long term investments are made by corporations in several avenues, such as Mutual funds, Government securities such as bonds, and commercial papers, Mortgage and Asset backed securities such as Real Estate Funds etc.

They represent steady income for the investor in the form of periodic interest payments or capital appreciation of the value of the investment.

They are often purchased are issued at par (at face value), at premium (at higher than face value) or at a discount (at lower than face value).

Requirement 2:

8 Types of investments held by Microsoft for the year ended 30 June, 2016.

To determine

Concept Introduction:

Fair value of Securities:

When an investment is purchased, it is required to revalue the investment at the end of the year in order to make sure the fair value is correctly reflected in the financial statements.

Fair value refers to the realizable value of the securities at the end of a reporting period. It can be viewed as the replacement cost of the securities if such securities were purchased today.

If the cost of purchase is higher than the fair value of the investment at the time of revaluation, then the difference is debited to the fair value adjustments account.

If the cost of purchase is lower than the fair value of the investment at the time of revaluation, then the difference is debited to the fair value adjustments account.

Requirement 3:

Unrealized gains and losses of Microsoft for the year ended 30 June, 2016.

To determine

Concept Introduction:

Fair value of Securities:

When an investment is purchased, it is required to revalue the investment at the end of the year in order to make sure the fair value is correctly reflected in the financial statements.

Fair value refers to the realizable value of the securities at the end of a reporting period. It can be viewed as the replacement cost of the securities if such securities were purchased today.

If the cost of purchase is higher than the fair value of the investment at the time of revaluation, then the difference is debited to the fair value adjustments account.

If the cost of purchase is lower than the fair value of the investment at the time of revaluation, then the difference is debited to the fair value adjustments account.

Requirement 4:

Cost basis compared to recorded amount for the year ended 30 June, 2016.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 5

Chapter 15, Problem 3BTN

To determine

Concept Introduction:

Fair value of Securities:

When an investment is purchased, it is required to revalue the investment at the end of the year in order to make sure the fair value is correctly reflected in the financial statements.

Fair value refers to the realizable value of the securities at the end of a reporting period. It can be viewed as the replacement cost of the securities if such securities were purchased today.

If the cost of purchase is higher than the fair value of the investment at the time of revaluation, then the difference is debited to the fair value adjustments account.

If the cost of purchase is lower than the fair value of the investment at the time of revaluation, then the difference is debited to the fair value adjustments account.

Requirement 1:

Cost basis compared to previous years amount

To determine

Concept Introduction:

Long term Investments:

Long term investments are made by corporations in several avenues, such as Mutual funds, Government securities such as bonds, and commercial papers, Mortgage and Asset backed securities such as Real Estate Funds etc.

They represent steady income for the investor in the form of periodic interest payments or capital appreciation of the value of the investment.

They are often purchased are issued at par (at face value), at premium (at higher than face value) or at a discount (at lower than face value).

Requirement 2:

8 Types of investments held by Microsoft for the year ended 30 June, 2016.

To determine

Concept Introduction:

Fair value of Securities:

When an investment is purchased, it is required to revalue the investment at the end of the year in order to make sure the fair value is correctly reflected in the financial statements.

Fair value refers to the realizable value of the securities at the end of a reporting period. It can be viewed as the replacement cost of the securities if such securities were purchased today.

If the cost of purchase is higher than the fair value of the investment at the time of revaluation, then the difference is debited to the fair value adjustments account.

If the cost of purchase is lower than the fair value of the investment at the time of revaluation, then the difference is debited to the fair value adjustments account.

Requirement 3:

Unrealized gains and losses of Microsoft for the year ended 30 June, 2016.

To determine

Concept Introduction:

Fair value of Securities:

When an investment is purchased, it is required to revalue the investment at the end of the year in order to make sure the fair value is correctly reflected in the financial statements.

Fair value refers to the realizable value of the securities at the end of a reporting period. It can be viewed as the replacement cost of the securities if such securities were purchased today.

If the cost of purchase is higher than the fair value of the investment at the time of revaluation, then the difference is debited to the fair value adjustments account.

If the cost of purchase is lower than the fair value of the investment at the time of revaluation, then the difference is debited to the fair value adjustments account.

Requirement 4:

Cost basis compared to recorded amount for the year ended 30 June, 2016.

Answer 6

Chapter 15, Problem 3BTN

To determine

Concept Introduction:

Fair value of Securities:

When an investment is purchased, it is required to revalue the investment at the end of the year in order to make sure the fair value is correctly reflected in the financial statements.

Fair value refers to the realizable value of the securities at the end of a reporting period. It can be viewed as the replacement cost of the securities if such securities were purchased today.

If the cost of purchase is higher than the fair value of the investment at the time of revaluation, then the difference is debited to the fair value adjustments account.

If the cost of purchase is lower than the fair value of the investment at the time of revaluation, then the difference is debited to the fair value adjustments account.

Requirement 1:

Cost basis compared to previous years amount

Answer 7

Chapter 15, Problem 3BTN

To determine

Concept Introduction:

Fair value of Securities:

When an investment is purchased, it is required to revalue the investment at the end of the year in order to make sure the fair value is correctly reflected in the financial statements.

Fair value refers to the realizable value of the securities at the end of a reporting period. It can be viewed as the replacement cost of the securities if such securities were purchased today.

If the cost of purchase is higher than the fair value of the investment at the time of revaluation, then the difference is debited to the fair value adjustments account.

If the cost of purchase is lower than the fair value of the investment at the time of revaluation, then the difference is debited to the fair value adjustments account.

Requirement 1:

Cost basis compared to previous years amount

Answer 8

To determine

Concept Introduction:

Long term Investments:

Long term investments are made by corporations in several avenues, such as Mutual funds, Government securities such as bonds, and commercial papers, Mortgage and Asset backed securities such as Real Estate Funds etc.

They represent steady income for the investor in the form of periodic interest payments or capital appreciation of the value of the investment.

They are often purchased are issued at par (at face value), at premium (at higher than face value) or at a discount (at lower than face value).

Requirement 2:

8 Types of investments held by Microsoft for the year ended 30 June, 2016.

Answer 9

To determine

Concept Introduction:

Long term Investments:

Long term investments are made by corporations in several avenues, such as Mutual funds, Government securities such as bonds, and commercial papers, Mortgage and Asset backed securities such as Real Estate Funds etc.

They represent steady income for the investor in the form of periodic interest payments or capital appreciation of the value of the investment.

They are often purchased are issued at par (at face value), at premium (at higher than face value) or at a discount (at lower than face value).

Requirement 2:

8 Types of investments held by Microsoft for the year ended 30 June, 2016.

Answer 10

To determine

Concept Introduction:

Fair value of Securities:

When an investment is purchased, it is required to revalue the investment at the end of the year in order to make sure the fair value is correctly reflected in the financial statements.

Fair value refers to the realizable value of the securities at the end of a reporting period. It can be viewed as the replacement cost of the securities if such securities were purchased today.

If the cost of purchase is higher than the fair value of the investment at the time of revaluation, then the difference is debited to the fair value adjustments account.

If the cost of purchase is lower than the fair value of the investment at the time of revaluation, then the difference is debited to the fair value adjustments account.

Requirement 3:

Unrealized gains and losses of Microsoft for the year ended 30 June, 2016.

Answer 11

To determine

Concept Introduction:

Fair value of Securities:

When an investment is purchased, it is required to revalue the investment at the end of the year in order to make sure the fair value is correctly reflected in the financial statements.

Fair value refers to the realizable value of the securities at the end of a reporting period. It can be viewed as the replacement cost of the securities if such securities were purchased today.

If the cost of purchase is higher than the fair value of the investment at the time of revaluation, then the difference is debited to the fair value adjustments account.

If the cost of purchase is lower than the fair value of the investment at the time of revaluation, then the difference is debited to the fair value adjustments account.

Requirement 3:

Unrealized gains and losses of Microsoft for the year ended 30 June, 2016.

Answer 12

To determine

Concept Introduction:

Fair value of Securities:

When an investment is purchased, it is required to revalue the investment at the end of the year in order to make sure the fair value is correctly reflected in the financial statements.

Fair value refers to the realizable value of the securities at the end of a reporting period. It can be viewed as the replacement cost of the securities if such securities were purchased today.

If the cost of purchase is higher than the fair value of the investment at the time of revaluation, then the difference is debited to the fair value adjustments account.

If the cost of purchase is lower than the fair value of the investment at the time of revaluation, then the difference is debited to the fair value adjustments account.

Requirement 4:

Cost basis compared to recorded amount for the year ended 30 June, 2016.

Answer 13

To determine

Concept Introduction:

Fair value of Securities:

When an investment is purchased, it is required to revalue the investment at the end of the year in order to make sure the fair value is correctly reflected in the financial statements.

Fair value refers to the realizable value of the securities at the end of a reporting period. It can be viewed as the replacement cost of the securities if such securities were purchased today.

If the cost of purchase is higher than the fair value of the investment at the time of revaluation, then the difference is debited to the fair value adjustments account.

If the cost of purchase is lower than the fair value of the investment at the time of revaluation, then the difference is debited to the fair value adjustments account.

Requirement 4:

Cost basis compared to recorded amount for the year ended 30 June, 2016.

Answer 14

Expert Solution & Answer

Answer 15

Expert Solution & Answer

Answer 16

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 17

Ch. 15 - Prob. 1QS Ch. 15 - Prob. 2QS Ch. 15 - Prob. 3QS Ch. 15 - Prob. 4QS Ch. 15 - QS 15-5 Reporting trading securities on financial...Ch. 15 - Prob. 6QS Ch. 15 - Prob. 7QS Ch. 15 - Prob. 8QS Ch. 15 - Prob. 9QS Ch. 15 - Prob. 10QS

Videos

Want to see the full answer?

Chapter 15 Solutions