Available-for-sale investments: Available-for-sale investments are the investments which neither fall in the category of trading investments nor fall in the category of held-to-maturity investments. They are recorded at fair market value. The effects of fluctuations in the prices i.e. increase or decrease in prices at the year-end are adjusted and unrealized gain or loss due to these fluctuations are transferred to other comprehensive income. Other comprehensive income is not included in net income. Other comprehensive income are shown after net income in the income statement. Requirement 1 To prepare: Journal entry to record purchase of securities

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Answer 1

Question

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

Chapter 15, Problem 7QS

To determine

Concept Introduction:

Available-for-sale investments:

Available-for-sale investments are the investments which neither fall in the category of trading investments nor fall in the category of held-to-maturity investments.

They are recorded at fair market value. The effects of fluctuations in the prices i.e. increase or decrease in prices at the year-end are adjusted and unrealized gain or loss due to these fluctuations are transferred to other comprehensive income.

Other comprehensive income is not included in net income. Other comprehensive income are shown after net income in the income statement.

Requirement 1

To prepare:

Journal entry to record purchase of securities

To determine

Requirement 2:

To prepare:

Year-end adjusting entry to record unrealized gain or loss on portfolio’s securities.

To determine

Requirement 3

To explain:

How the unrealised loss and fair value adjustment will be reported in financial statements.

To determine

Requirement 4

To prepare:

Journal entry to record sale of half of these securities for $ 26,000

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Kubin Company’s relevant range of production is 11,000 to 14,000 units. When it produces and sells 12,500 units, its average costs per unit are as follows: Average Cost per Unit Direct materials $ 7.20 Direct labor $ 4.20 Variable manufacturing overhead $ 1.70 Fixed manufacturing overhead $ 5.20 Fixed selling expense $ 3.70 Fixed administrative expense $ 2.70 Sales commissions $ 1.20 Variable administrative expense $ 0.70 Required: For financial accounting purposes, what is the total product cost incurred to make 12,500 units? For financial accounting purposes, what is the total period cost incurred to sell 12,500 units? For financial accounting purposes, what is the total product cost incurred to make 14,000 units? For financial accounting purposes, what is the total period cost incurred to sell 11,000 units?

Choose a manufacturing company then discuss the following: First, name your company and list its main products and direct materials used. What is spoilage? Give an example of spoilage that might occur during the manufacturing of the company's product. What is scrap? Give an example of scrap that might occur during the manufacturing of the company's product. What does rework mean? Give an example of rework that might occur during the manufacturing of the company's product. A leading manufacturer recently said, "What has been regarded as normal spoilage in the past will not acceptable as normal spoilage in the future? What are they talking about? What do you think are the external or internal factors that may affect the level of normal spoilage in the future?

Answer 2

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Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

Chapter 15, Problem 7QS

To determine

Concept Introduction:

Available-for-sale investments:

Available-for-sale investments are the investments which neither fall in the category of trading investments nor fall in the category of held-to-maturity investments.

They are recorded at fair market value. The effects of fluctuations in the prices i.e. increase or decrease in prices at the year-end are adjusted and unrealized gain or loss due to these fluctuations are transferred to other comprehensive income.

Other comprehensive income is not included in net income. Other comprehensive income are shown after net income in the income statement.

Requirement 1

To prepare:

Journal entry to record purchase of securities

To determine

Requirement 2:

To prepare:

Year-end adjusting entry to record unrealized gain or loss on portfolio’s securities.

To determine

Requirement 3

To explain:

How the unrealised loss and fair value adjustment will be reported in financial statements.

To determine

Requirement 4

To prepare:

Journal entry to record sale of half of these securities for $ 26,000

Expert Solution & Answer

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Answer 3

Question

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

Chapter 15, Problem 7QS

To determine

Concept Introduction:

Available-for-sale investments:

Available-for-sale investments are the investments which neither fall in the category of trading investments nor fall in the category of held-to-maturity investments.

They are recorded at fair market value. The effects of fluctuations in the prices i.e. increase or decrease in prices at the year-end are adjusted and unrealized gain or loss due to these fluctuations are transferred to other comprehensive income.

Other comprehensive income is not included in net income. Other comprehensive income are shown after net income in the income statement.

Requirement 1

To prepare:

Journal entry to record purchase of securities

To determine

Requirement 2:

To prepare:

Year-end adjusting entry to record unrealized gain or loss on portfolio’s securities.

To determine

Requirement 3

To explain:

How the unrealised loss and fair value adjustment will be reported in financial statements.

To determine

Requirement 4

To prepare:

Journal entry to record sale of half of these securities for $ 26,000

Expert Solution & Answer

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Answer 4

Question

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

Chapter 15, Problem 7QS

To determine

Concept Introduction:

Available-for-sale investments:

Available-for-sale investments are the investments which neither fall in the category of trading investments nor fall in the category of held-to-maturity investments.

They are recorded at fair market value. The effects of fluctuations in the prices i.e. increase or decrease in prices at the year-end are adjusted and unrealized gain or loss due to these fluctuations are transferred to other comprehensive income.

Other comprehensive income is not included in net income. Other comprehensive income are shown after net income in the income statement.

Requirement 1

To prepare:

Journal entry to record purchase of securities

To determine

Requirement 2:

To prepare:

Year-end adjusting entry to record unrealized gain or loss on portfolio’s securities.

To determine

Requirement 3

To explain:

How the unrealised loss and fair value adjustment will be reported in financial statements.

To determine

Requirement 4

To prepare:

Journal entry to record sale of half of these securities for $ 26,000

Expert Solution & Answer

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Answer 5

Chapter 15, Problem 7QS

To determine

Concept Introduction:

Available-for-sale investments:

Available-for-sale investments are the investments which neither fall in the category of trading investments nor fall in the category of held-to-maturity investments.

They are recorded at fair market value. The effects of fluctuations in the prices i.e. increase or decrease in prices at the year-end are adjusted and unrealized gain or loss due to these fluctuations are transferred to other comprehensive income.

Other comprehensive income is not included in net income. Other comprehensive income are shown after net income in the income statement.

Requirement 1

To prepare:

Journal entry to record purchase of securities

To determine

Requirement 2:

To prepare:

Year-end adjusting entry to record unrealized gain or loss on portfolio’s securities.

To determine

Requirement 3

To explain:

How the unrealised loss and fair value adjustment will be reported in financial statements.

To determine

Requirement 4

To prepare:

Journal entry to record sale of half of these securities for $ 26,000

Answer 6

Chapter 15, Problem 7QS

To determine

Concept Introduction:

Available-for-sale investments:

Available-for-sale investments are the investments which neither fall in the category of trading investments nor fall in the category of held-to-maturity investments.

They are recorded at fair market value. The effects of fluctuations in the prices i.e. increase or decrease in prices at the year-end are adjusted and unrealized gain or loss due to these fluctuations are transferred to other comprehensive income.

Other comprehensive income is not included in net income. Other comprehensive income are shown after net income in the income statement.

Requirement 1

To prepare:

Journal entry to record purchase of securities

Answer 7

Chapter 15, Problem 7QS

To determine

Concept Introduction:

Available-for-sale investments:

Available-for-sale investments are the investments which neither fall in the category of trading investments nor fall in the category of held-to-maturity investments.

They are recorded at fair market value. The effects of fluctuations in the prices i.e. increase or decrease in prices at the year-end are adjusted and unrealized gain or loss due to these fluctuations are transferred to other comprehensive income.

Other comprehensive income is not included in net income. Other comprehensive income are shown after net income in the income statement.

Requirement 1

To prepare:

Journal entry to record purchase of securities

Answer 8

To determine

Requirement 2:

To prepare:

Year-end adjusting entry to record unrealized gain or loss on portfolio’s securities.

Answer 9

To determine

Requirement 2:

To prepare:

Year-end adjusting entry to record unrealized gain or loss on portfolio’s securities.

Answer 10

To determine

Requirement 3

To explain:

How the unrealised loss and fair value adjustment will be reported in financial statements.

Answer 11

To determine

Requirement 3

To explain:

How the unrealised loss and fair value adjustment will be reported in financial statements.

Answer 12

To determine

Requirement 4

To prepare:

Journal entry to record sale of half of these securities for $ 26,000

Answer 13

To determine

Requirement 4

To prepare:

Journal entry to record sale of half of these securities for $ 26,000

Answer 14

Expert Solution & Answer

Answer 15

Expert Solution & Answer

Answer 16

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Answer 17

Ch. 15 - Prob. 1DQ Ch. 15 - Prob. 2DQ Ch. 15 - Prob. 3DQ Ch. 15 - Prob. 4DQ Ch. 15 - Prob. 5DQ Ch. 15 - Prob. 6DQ Ch. 15 - Prob. 7DQ Ch. 15 - Prob. 8DQ Ch. 15 - Prob. 9DQ Ch. 15 - Prob. 10DQ

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Requirement 2:

To prepare:

Year-end adjusting entry to record unrealized gain or loss on portfolio’s securities.

Requirement 3

To explain:

How the unrealised loss and fair value adjustment will be reported in financial statements.

Requirement 4

To prepare:

Journal entry to record sale of half of these securities for $ 26,000

Want to see the full answer?

Chapter 15 Solutions

Videos

Requirement 2: To prepare: Year-end adjusting entry to record unrealized gain or loss on portfolio’s securities.

Requirement 3 To explain: How the unrealised loss and fair value adjustment will be reported in financial statements.

Requirement 4 To prepare: Journal entry to record sale of half of these securities for $ 26,000

Want to see the full answer?

Chapter 15 Solutions

Requirement 2:

To prepare:

Year-end adjusting entry to record unrealized gain or loss on portfolio’s securities.

Requirement 3

To explain:

How the unrealised loss and fair value adjustment will be reported in financial statements.

Requirement 4

To prepare:

Journal entry to record sale of half of these securities for $ 26,000