Horngren's Accounting, The Financial Chapters (11th Edition) - Standalone Book
11th Edition
ISBN: 9780133866889
Author: Tracie L. Miller-Nobles, Brenda L. Mattison, Ella Mae Matsumura
Publisher: PEARSON
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Question
Chapter 15, Problem P15.21BPGB
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 type of securities will be different.
Requirement 1;
Classification of stock investment.
Main solution:
1. 3600 shares of TJF Inc. will be classified as Marketable Securities – Held as Trading Securities
2. 400 shares of Seanco will be classified as Marketable Securities – Held as Trading Securities
To determine
Requirement 2;
To prepare:
Main solution:
| Date | Accounts Title | Debit | Credit |
|---|---|---|---|
| July2, 2016 | Marketable Securities | $39600 | |
| Cash | $39600 | ||
| Aug. 21, 2016 | Cash | $360 | |
| Dividend Revenue | $360 | ||
| Sep. 16, 201 | Cash | $54360 | |
| Marketable Securities | $39600 | ||
| Realized Gain on Trading Securities | $14760 | ||
| Oct. 8, 2016 | Marketable Securities | $5200 | |
| Cash | $5200 | ||
| Dec.31, 2016 | Unrealized Holding Loss on Trading Securities | $2800 | |
| Marketable Securities | $2800 |
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 TJF Inc.) | |||
|---|---|---|---|
| Debit | Credit | ||
| July 2, 2016 | $39600 | Sept. 16, 2016 | $39600 |
| $37400 | $37400 | ||
| Marketable Securities (Investment made in Seanco Inc.) | |||
|---|---|---|---|
| Debit | Credit | ||
| Oct. 8, 2016 | $5200 | Dec. 31, 2016 | $2800 |
| Ending balance | $2400 | ||
| Way Corporation | |
|---|---|
| Balance Sheet (Partial) | |
| As at December 31, 2016 | |
| Assets | |
| Current asset; | |
| Marketable Securities – Held as trading securities | $2400 |
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Chapter 15 Solutions
Horngren's Accounting, The Financial Chapters (11th Edition) - Standalone Book
Ch. 15 - Prob. 1QCCh. 15 - Which of the following investments is most likely...Ch. 15 - Prob. 3QCCh. 15 - A company invested $45,000 in Yale Co. stock. The...Ch. 15 - Prob. 5QCCh. 15 - Prob. 6QCCh. 15 - Prob. 7QCCh. 15 - Prob. 8QCCh. 15 - Prob. 9QCCh. 15 - Prob. 10QC
Ch. 15 - Prob. 1RQCh. 15 - Prob. 2RQCh. 15 - Prob. 3RQCh. 15 - Prob. 4RQCh. 15 - Prob. 5RQCh. 15 - Prob. 6RQCh. 15 - Prob. 7RQCh. 15 - Prob. 8RQCh. 15 - Prob. 9RQCh. 15 - Prob. 10RQCh. 15 - Prob. 11RQCh. 15 - Prob. 12RQCh. 15 - Prob. 13RQCh. 15 - Prob. 14RQCh. 15 - Prob. S15.1SECh. 15 - Prob. S15.2SECh. 15 - Prob. S15.3SECh. 15 - Prob. S15.4SECh. 15 - Prob. S15.5SECh. 15 - Prob. S15.6SECh. 15 - Prob. S15.7SECh. 15 - Prob. E15.8ECh. 15 - Prob. E15.9ECh. 15 - Prob. E15.10ECh. 15 - Prob. E15.11ECh. 15 - Prob. E15.12ECh. 15 - Prob. E15.13ECh. 15 - Prob. E15.14ECh. 15 - Prob. E15.15ECh. 15 - Prob. E15.16ECh. 15 - Prob. E15.17ECh. 15 - Prob. P15.18APGACh. 15 - Prob. P15.19APGACh. 15 - Prob. P15.20APGACh. 15 - Prob. P15.21BPGBCh. 15 - Prob. P15.22BPGBCh. 15 - Prob. 23CPCh. 15 - Prob. 15.1DCCh. 15 - Prob. 15.1EICh. 15 - Prob. 15.1FCCh. 15 - Financial Statement Case 151 Details about a...
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