Concept Introduction:
Investment in Debt securities: Debt securities are financing instrument which represents the loan taken from lender and usually these securities pay defined interest rate on the amount borrowed. The several types of debt instruments are bonds, certificate of deposits,
1. Held to maturity: Held to maturity is a type of debt investment that the investor intends to hold till maturity. These securities are recorded at amortized cost.
2. Trading: Trading securities are purchased by the investor for the purpose to sell within a short term period to each profit. These securities are recorded at their fair value and any gain or loss in recognized in the income statement for that period.
3. Available for sale: All the other securities are considered as available for sale and these securities are recorded at their fair value and any gain or loss is recognized unrealized gain or loss until the securities are actually sold.
To indicate: The recording of gain or loss on sale on disposing off an available for sale debt investment
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Chapter 15 Solutions
ACCOUNTING PRINCIPLES 122 5/16 >C<
- Kindly help me with accounting questionsarrow_forwardPlease given answer general Accountingarrow_forwardQuestions:-General Account - On March 1, 2019, Alpha Company's beginning work-in-process inventory had 8,000 units. This is its only production department. Beginning WIP units were 50% completed to conversion costs. Alpha introduces direct materials at the beginning of the production process. During March, a total of 15,000 units were started and a total of 20,000 units were completed. Alpha's ending WIP inventory had 3,000 units which were 70% completed to conversion costs. Alpha uses the weighted average method. Use this information to determine for March 2019 the equivalent units of production for conversion costsarrow_forward
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