Loose Leaf for Fundamental Accounting Principles
23rd Edition
ISBN: 9781259687709
Author: John J Wild, Ken Shaw Accounting Professor, Barbara Chiappetta Fundamental Accounting Principles
Publisher: McGraw-Hill Education
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Textbook Question
Chapter 15, Problem 5BPSB
Problem 15-5B
Long-term investment transactions; unrealized and realized gains and losses
C2 P3P4
Troyer’s long-term available-for--sale portfolio at December 31, 2016, consists of the following.
Troyer enters into the following long-term investment transactions during year 2017.
Jan. Sold 2,125 shares of Company S stock for $72,250 less a brokerage fee of $1,195.
13
Mar. Purchased 15,500 shares of Company U common stock for $282,875 plus a brokerage fee of $1,980. The shares represent a 62% ownership 24 interest in Company U.
Apr. 5 Purchased 42,500 shares of Company V common stock for $133,875 plus a brokerage fee of $1,125. The shares represent a 10% ownership in Company V.
Sep. 2 Sold 11,000 shares of Company T common stock for $156,750 less a brokerage fee of $2,700.
Sep. Purchased 2,500 shares of Company W common stock for $50,500 plus a brokerage fee of $i,o5o. The shares represent a 25% ownership
27 interest in Company W.
Oct. Purchased 5,000 shares of Company X common stock for $48,750 plus a brokerage fee of $1,170. The shares represent a 13% ownership interest
30 in Company X.
The fair values of its investments at December 31, 2017, are: R, $568,125; S, $210,375; U, $272,800; V, $134,938; W, $54,689; and X, $45,625.
Required
1. Determine the amount Troyer should report on its December 31, 2017,
2. Prepare any necessary December 31, 2017,
securities.
3. What amount of gains or losses on transactions relating to long-term investments in available-for-sale securities should Troyer report on its December
31, 2017, income statement?
Check (2) Dr, Unrealized Loss-Equity, $16.267: Cr. Fair Value Adjustment-AFS (IJ), $46.580
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Question 30
At December 31, 2017, Gregson Inc. has these data on its security investments:
Security
Cost
Fair Value 12/31/17
Trading
$ 280,000
$344,000
Non-trading
274,000
250,000
If the non-trading securities are held as long-term investments, which of the following will be recorded to adjust the securities to fair value?
Oa. Fair Value Adjustment-Trading..
64,000
Unrealized Gain-Income...
64,000
Unrealized Gain or Loss-Equity......
24,000
Fair Value Adjustment-Non-Trading..
24,000
24,000
Unrealized Gain-Income..
Ob. Unrealized Loss-Income.
Securities...
Oc. Securities
Ⓒd. Unrealized Gain-Income....
Unrealized Gain-Income...
Fair Value Adjustment-Trading..
Fair Value Adjustment-Non-Trading..
Unrealized Gain or Loss-Equity....
40,000
40,000
4,000
28,000
64,000
64,000
24,000
24,000
Required information
Problem 15-3A (Algo) Debt investments in available-for-sale securities; unrealized and realized gains and
losses LO P3
[The following information applies to the questions displayed below]
Stoll Company's long-term available-for-sale portfolio at the start of this year consists of the following.
Cost
$530,300
159,210
663,600
Available-for-Sale Securities
Company A bonds
Company B notes
Company C bonds
Stoll enters into the following transactions involving its available-for-sale debt securities this year.
Fair Value
$ 494,000
Problem 15-3A (Algo) Part 1 and 2
154,000
648,160
January 29 Sold one-half of the Company B notes for $78,920.
July 6 Purchased Company X bonds for $127,100.
November 13 Purchased Company 2 notes for $267,900.
December 9 Sold all of the Company A bonds for $522,300.
Fair values at December 31 are B, $83,300, C, $604,600, X, $112,000, and Z, $290,000.
Required:
1. Prepare journal entries to record these transactions, including the December 31…
cam Acc III-June 23 1
O:22:27
C
Mc
Graw
Hill
Monkey Mortgage Inc. engaged in the following non-strategic investment transactions during 2023, all with intent to hold to maturity:
2023
1 Purchased for $427,057 a 7.0%, $420,000 Jaguar Corp. bond that matures in five years when the market interest rate was
6.6%. There was a $$125 transaction fee included in the above-noted payment amount. Interest is paid semiannually
beginning June 30, 2023. Monkey Mortgage Inc. plans to hold this investment until maturity.
1 Bought 8,000 shares of Mule Corp., paying $34.50 per share. There was a $125 transaction fee included in the above-noted
payment amount.
May
7 Received dividends of $2.90 per share on the Mule Corp. shares.
June 1 Paid $336,000 for 22,000 shares of Zebra common shares. There was a $$125 transaction fee included in the above-noted
payment.
June 30 Received interest on the Jaguar bond..
Jan.
Mar.
Aug. 1 Sold the Mule Corp. shares for $34.75 per share.
Dec. 31 Received interest on the…
Chapter 15 Solutions
Loose Leaf for Fundamental Accounting Principles
Ch. 15 - Prob. 1DQCh. 15 - Prob. 2DQCh. 15 - Prob. 3DQCh. 15 - Prob. 4DQCh. 15 - Prob. 5DQCh. 15 - Prob. 6DQCh. 15 - Prob. 7DQCh. 15 - Prob. 8DQCh. 15 - Prob. 9DQCh. 15 - Prob. 10DQ
Ch. 15 - Prob. 11DQCh. 15 - Prob. 12DQCh. 15 - Prob. 13DQCh. 15 - Prob. 14DQCh. 15 - Prob. 1QSCh. 15 - Prob. 2QSCh. 15 - Prob. 3QSCh. 15 - Prob. 4QSCh. 15 - Prob. 5QSCh. 15 - QS 15-6
Debt securities transactions
P2
On January...Ch. 15 - Prob. 7QSCh. 15 - Prob. 8QSCh. 15 - Prob. 9QSCh. 15 - Prob. 10QSCh. 15 - Prob. 11QSCh. 15 - Prob. 12QSCh. 15 - Prob. 13QSCh. 15 - Prob. 14QSCh. 15 - Prob. 15QSCh. 15 - Prob. 16QSCh. 15 - Exercise 15-1 Debt and equity securities and shod-...Ch. 15 - Prob. 2ECh. 15 - Prob. 3ECh. 15 - Prob. 4ECh. 15 - Prob. 5ECh. 15 - Prob. 6ECh. 15 - Prob. 7ECh. 15 - Prob. 8ECh. 15 - Prob. 9ECh. 15 - Prob. 10ECh. 15 - Prob. 11ECh. 15 - Prob. 12ECh. 15 - Prob. 13ECh. 15 - Prob. 14ECh. 15 - Prob. 15ECh. 15 - Prob. 1APSACh. 15 - Prob. 2APSACh. 15 - Prob. 3APSACh. 15 - Problem 154A Accounting for long-term investments...Ch. 15 - Prob. 5APSACh. 15 - Prob. 1BPSBCh. 15 - Prob. 2BPSBCh. 15 - Prob. 3BPSBCh. 15 - Problem 154B Accounting for long-term investments...Ch. 15 - Problem 15-5B Long-term investment transactions;...Ch. 15 - Prob. 15SPCh. 15 - Prob. 1GLPCh. 15 - GL 15-2 General Ledger assignment 15–2 is adapted...Ch. 15 - Prob. 1BTNCh. 15 - Prob. 2BTNCh. 15 - Kasey Hartman is the controller for Wholemart...Ch. 15 - Prob. 4BTNCh. 15 - Prob. 5BTNCh. 15 - Prob. 6BTNCh. 15 - Prob. 7BTNCh. 15 - Prob. 8BTNCh. 15 - Prob. 9BTN
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