Investment should be classified between current and non-current assets on the basis of motive of investment. Some securities may be purchased for trading purpose or for held-to-maturity, so disclosure of each types of securities will be different. Requirement 1; To prepare: Classification of stock investment. Main solution: Balance Sheet (Partial) Assets Current asset; Marketable Securities – Held as trading securities $37400 Marketable Securities – Held as trading securities $6000

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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 P15.18APGA

To determine

Concept introduction: Investment should be classified between current and non-current assets on the basis of motive of investment. Some securities may be purchased for trading purpose or for held-to-maturity, so disclosure of each types of securities will be different.

Requirement 1;

To prepare: Classification of stock investment.

Main solution:

Balance Sheet (Partial)

Assets

Current asset;

Marketable Securities – Held as trading securities $37400

Marketable Securities – Held as trading securities $6000

To determine

Requirement 2;

To prepare:Journal entries for investment transactions.

Main solution:

Date Accounts Title Debit Credit

July2, 2016 Marketable Securities $37400

Cash $37400

Aug. 21, 2016 Cash $1020

Dividend Revenue $1020

Sep. 16, 201 Cash $50320

Marketable Securities $37400

Realized Gain on Trading Securities $12920

Oct. 8, 2016 Marketable Securities $6000

Cash $6000

Dec.31, 2016 Unrealized Holding Loss on Trading Securities $4000

Marketable Securities $4000

To determine

Requirement 3;

To prepare: Preparation of T account and disclosure in the balance sheet at December 31, 2016.

Main solution:

Marketable Securities (Investment made in Bravo Inc.)

Debit Credit

Cash $37400 Cash $37400

$37400 $37400

Marketable Securities (Investment made in Zigbo Inc.)

Debit Credit

Cash $6000 Unrealized holding loss on trading securities $4000

Ending balance $2000

$6000 $6000

Cash

Debit Credit

Marketable securities $50320 Marketable securities $37400

Dividend revenue $1020 Marketable securities $6000

Ending balance $7940

$51340 $51340

Main 4 You

Balance Sheet (Partial)

As at December 31, 2016

Assets

Current asset;

Cash $7940

Marketable Securities – Held as trading securities $2000

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Answer 2

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 P15.18APGA

To determine

Concept introduction: Investment should be classified between current and non-current assets on the basis of motive of investment. Some securities may be purchased for trading purpose or for held-to-maturity, so disclosure of each types of securities will be different.

Requirement 1;

To prepare: Classification of stock investment.

Main solution:

Balance Sheet (Partial)

Assets

Current asset;

Marketable Securities – Held as trading securities $37400

Marketable Securities – Held as trading securities $6000

To determine

Requirement 2;

To prepare:Journal entries for investment transactions.

Main solution:

Date Accounts Title Debit Credit

July2, 2016 Marketable Securities $37400

Cash $37400

Aug. 21, 2016 Cash $1020

Dividend Revenue $1020

Sep. 16, 201 Cash $50320

Marketable Securities $37400

Realized Gain on Trading Securities $12920

Oct. 8, 2016 Marketable Securities $6000

Cash $6000

Dec.31, 2016 Unrealized Holding Loss on Trading Securities $4000

Marketable Securities $4000

To determine

Requirement 3;

To prepare: Preparation of T account and disclosure in the balance sheet at December 31, 2016.

Main solution:

Marketable Securities (Investment made in Bravo Inc.)

Debit Credit

Cash $37400 Cash $37400

$37400 $37400

Marketable Securities (Investment made in Zigbo Inc.)

Debit Credit

Cash $6000 Unrealized holding loss on trading securities $4000

Ending balance $2000

$6000 $6000

Cash

Debit Credit

Marketable securities $50320 Marketable securities $37400

Dividend revenue $1020 Marketable securities $6000

Ending balance $7940

$51340 $51340

Main 4 You

Balance Sheet (Partial)

As at December 31, 2016

Assets

Current asset;

Cash $7940

Marketable Securities – Held as trading securities $2000

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 P15.18APGA

To determine

Concept introduction: Investment should be classified between current and non-current assets on the basis of motive of investment. Some securities may be purchased for trading purpose or for held-to-maturity, so disclosure of each types of securities will be different.

Requirement 1;

To prepare: Classification of stock investment.

Main solution:

Balance Sheet (Partial)

Assets

Current asset;

Marketable Securities – Held as trading securities $37400

Marketable Securities – Held as trading securities $6000

To determine

Requirement 2;

To prepare:Journal entries for investment transactions.

Main solution:

Date Accounts Title Debit Credit

July2, 2016 Marketable Securities $37400

Cash $37400

Aug. 21, 2016 Cash $1020

Dividend Revenue $1020

Sep. 16, 201 Cash $50320

Marketable Securities $37400

Realized Gain on Trading Securities $12920

Oct. 8, 2016 Marketable Securities $6000

Cash $6000

Dec.31, 2016 Unrealized Holding Loss on Trading Securities $4000

Marketable Securities $4000

To determine

Requirement 3;

To prepare: Preparation of T account and disclosure in the balance sheet at December 31, 2016.

Main solution:

Marketable Securities (Investment made in Bravo Inc.)

Debit Credit

Cash $37400 Cash $37400

$37400 $37400

Marketable Securities (Investment made in Zigbo Inc.)

Debit Credit

Cash $6000 Unrealized holding loss on trading securities $4000

Ending balance $2000

$6000 $6000

Cash

Debit Credit

Marketable securities $50320 Marketable securities $37400

Dividend revenue $1020 Marketable securities $6000

Ending balance $7940

$51340 $51340

Main 4 You

Balance Sheet (Partial)

As at December 31, 2016

Assets

Current asset;

Cash $7940

Marketable Securities – Held as trading securities $2000

Expert Solution & Answer

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See solution

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 P15.18APGA

To determine

Concept introduction: Investment should be classified between current and non-current assets on the basis of motive of investment. Some securities may be purchased for trading purpose or for held-to-maturity, so disclosure of each types of securities will be different.

Requirement 1;

To prepare: Classification of stock investment.

Main solution:

Balance Sheet (Partial)

Assets

Current asset;

Marketable Securities – Held as trading securities $37400

Marketable Securities – Held as trading securities $6000

To determine

Requirement 2;

To prepare:Journal entries for investment transactions.

Main solution:

Date Accounts Title Debit Credit

July2, 2016 Marketable Securities $37400

Cash $37400

Aug. 21, 2016 Cash $1020

Dividend Revenue $1020

Sep. 16, 201 Cash $50320

Marketable Securities $37400

Realized Gain on Trading Securities $12920

Oct. 8, 2016 Marketable Securities $6000

Cash $6000

Dec.31, 2016 Unrealized Holding Loss on Trading Securities $4000

Marketable Securities $4000

To determine

Requirement 3;

To prepare: Preparation of T account and disclosure in the balance sheet at December 31, 2016.

Main solution:

Marketable Securities (Investment made in Bravo Inc.)

Debit Credit

Cash $37400 Cash $37400

$37400 $37400

Marketable Securities (Investment made in Zigbo Inc.)

Debit Credit

Cash $6000 Unrealized holding loss on trading securities $4000

Ending balance $2000

$6000 $6000

Cash

Debit Credit

Marketable securities $50320 Marketable securities $37400

Dividend revenue $1020 Marketable securities $6000

Ending balance $7940

$51340 $51340

Main 4 You

Balance Sheet (Partial)

As at December 31, 2016

Assets

Current asset;

Cash $7940

Marketable Securities – Held as trading securities $2000

Expert Solution & Answer

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Check out a sample textbook solution

See solution

Answer 5

Chapter 15, Problem P15.18APGA

To determine

Concept introduction: Investment should be classified between current and non-current assets on the basis of motive of investment. Some securities may be purchased for trading purpose or for held-to-maturity, so disclosure of each types of securities will be different.

Requirement 1;

To prepare: Classification of stock investment.

Main solution:

Balance Sheet (Partial)

Assets

Current asset;

Marketable Securities – Held as trading securities $37400

Marketable Securities – Held as trading securities $6000

To determine

Requirement 2;

To prepare:Journal entries for investment transactions.

Main solution:

Date Accounts Title Debit Credit

July2, 2016 Marketable Securities $37400

Cash $37400

Aug. 21, 2016 Cash $1020

Dividend Revenue $1020

Sep. 16, 201 Cash $50320

Marketable Securities $37400

Realized Gain on Trading Securities $12920

Oct. 8, 2016 Marketable Securities $6000

Cash $6000

Dec.31, 2016 Unrealized Holding Loss on Trading Securities $4000

Marketable Securities $4000

To determine

Requirement 3;

To prepare: Preparation of T account and disclosure in the balance sheet at December 31, 2016.

Main solution:

Marketable Securities (Investment made in Bravo Inc.)

Debit Credit

Cash $37400 Cash $37400

$37400 $37400

Marketable Securities (Investment made in Zigbo Inc.)

Debit Credit

Cash $6000 Unrealized holding loss on trading securities $4000

Ending balance $2000

$6000 $6000

Cash

Debit Credit

Marketable securities $50320 Marketable securities $37400

Dividend revenue $1020 Marketable securities $6000

Ending balance $7940

$51340 $51340

Main 4 You

Balance Sheet (Partial)

As at December 31, 2016

Assets

Current asset;

Cash $7940

Marketable Securities – Held as trading securities $2000

Answer 6

Chapter 15, Problem P15.18APGA

To determine

Concept introduction: Investment should be classified between current and non-current assets on the basis of motive of investment. Some securities may be purchased for trading purpose or for held-to-maturity, so disclosure of each types of securities will be different.

Requirement 1;

To prepare: Classification of stock investment.

Main solution:

Balance Sheet (Partial)

Assets

Current asset;

Marketable Securities – Held as trading securities $37400

Marketable Securities – Held as trading securities $6000

Answer 7

Chapter 15, Problem P15.18APGA

To determine

Concept introduction: Investment should be classified between current and non-current assets on the basis of motive of investment. Some securities may be purchased for trading purpose or for held-to-maturity, so disclosure of each types of securities will be different.

Requirement 1;

To prepare: Classification of stock investment.

Main solution:

Balance Sheet (Partial)

Assets

Current asset;

Marketable Securities – Held as trading securities $37400

Marketable Securities – Held as trading securities $6000

Answer 8

To determine

Requirement 2;

To prepare:Journal entries for investment transactions.

Main solution:

Date Accounts Title Debit Credit

July2, 2016 Marketable Securities $37400

Cash $37400

Aug. 21, 2016 Cash $1020

Dividend Revenue $1020

Sep. 16, 201 Cash $50320

Marketable Securities $37400

Realized Gain on Trading Securities $12920

Oct. 8, 2016 Marketable Securities $6000

Cash $6000

Dec.31, 2016 Unrealized Holding Loss on Trading Securities $4000

Marketable Securities $4000

Answer 9

To determine

Requirement 2;

To prepare:Journal entries for investment transactions.

Main solution:

Date Accounts Title Debit Credit

July2, 2016 Marketable Securities $37400

Cash $37400

Aug. 21, 2016 Cash $1020

Dividend Revenue $1020

Sep. 16, 201 Cash $50320

Marketable Securities $37400

Realized Gain on Trading Securities $12920

Oct. 8, 2016 Marketable Securities $6000

Cash $6000

Dec.31, 2016 Unrealized Holding Loss on Trading Securities $4000

Marketable Securities $4000

Answer 10

To determine

Requirement 3;

To prepare: Preparation of T account and disclosure in the balance sheet at December 31, 2016.

Main solution:

Marketable Securities (Investment made in Bravo Inc.)

Debit Credit

Cash $37400 Cash $37400

$37400 $37400

Marketable Securities (Investment made in Zigbo Inc.)

Debit Credit

Cash $6000 Unrealized holding loss on trading securities $4000

Ending balance $2000

$6000 $6000

Cash

Debit Credit

Marketable securities $50320 Marketable securities $37400

Dividend revenue $1020 Marketable securities $6000

Ending balance $7940

$51340 $51340

Main 4 You

Balance Sheet (Partial)

As at December 31, 2016

Assets

Current asset;

Cash $7940

Marketable Securities – Held as trading securities $2000

Answer 11

To determine

Requirement 3;

To prepare: Preparation of T account and disclosure in the balance sheet at December 31, 2016.

Main solution:

Marketable Securities (Investment made in Bravo Inc.)

Debit Credit

Cash $37400 Cash $37400

$37400 $37400

Marketable Securities (Investment made in Zigbo Inc.)

Debit Credit

Cash $6000 Unrealized holding loss on trading securities $4000

Ending balance $2000

$6000 $6000

Cash

Debit Credit

Marketable securities $50320 Marketable securities $37400

Dividend revenue $1020 Marketable securities $6000

Ending balance $7940

$51340 $51340

Main 4 You

Balance Sheet (Partial)

As at December 31, 2016

Assets

Current asset;

Cash $7940

Marketable Securities – Held as trading securities $2000

Answer 12

Expert Solution & Answer

Answer 13

Expert Solution & Answer

Answer 14

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Answer 15

Ch. 15 - Prob. 1QC Ch. 15 - Which of the following investments is most likely...Ch. 15 - Prob. 3QC Ch. 15 - A company invested $45,000 in Yale Co. stock. The...Ch. 15 - Prob. 5QC Ch. 15 - Prob. 6QC Ch. 15 - Prob. 7QC Ch. 15 - Prob. 8QC Ch. 15 - Prob. 9QC Ch. 15 - Prob. 10QC

Balance Sheet (Partial)
Assets
Current asset;
Marketable Securities – Held as trading securities	$37400
Marketable Securities – Held as trading securities	$6000

Date	Accounts Title	Debit	Credit
July2, 2016	Marketable Securities	$37400
	Cash		$37400

Aug. 21, 2016	Cash	$1020
	Dividend Revenue		$1020

Sep. 16, 201	Cash	$50320
	Marketable Securities		$37400
	Realized Gain on Trading Securities		$12920

Oct. 8, 2016	Marketable Securities	$6000
	Cash		$6000

Dec.31, 2016	Unrealized Holding Loss on Trading Securities	$4000
	Marketable Securities		$4000

Marketable Securities (Investment made in Zigbo Inc.)
Debit		Credit
Cash	$6000	Unrealized holding loss on trading securities	$4000
		Ending balance	$2000
	$6000		$6000

Main 4 You
Balance Sheet (Partial)
As at December 31, 2016
Assets
Current asset;
Cash	$7940
Marketable Securities – Held as trading securities	$2000

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Chapter 15 Solutions