Horngren's Accounting, The Financial Chapters, Student Value Edition (11th Edition)
11th Edition
ISBN: 9780133876352
Author: Tracie L. Miller-Nobles, Brenda L. Mattison, Ella Mae Matsumura
Publisher: PEARSON
expand_more
expand_more
format_list_bulleted
Videos
Question
Chapter 15, Problem P15.22BPGB
To determine
Concept introduction: Available for sale (AFS) securities are those securities which are not classified as trading or held-to-maturity securities. In other words we can say that those securities do not fall under trading or held-to-maturity securities categories, are known as available for sale securities.
Requirement 1;
To prepare:
To determine
Requirement 2;
To prepare: Preparation of T accounts.
Main solution:
| Investment in Larsen’s Stock | |||
|---|---|---|---|
| Debit | Credit | ||
| Beginning balance | $800000 | Cash (dividend revenue) | $110000 |
| Equity in Earnings of Parson | $38500 | ||
| Ending balance | $728500 | ||
| $838500 | $838500 | ||
| Long-term Investment-Available for Sale Securities | |||
|---|---|---|---|
| Debit | Credit | ||
| Cash | $42000 | ||
| Unrealized holding gain on available for sale securities | $18000 | Ending balance | $60000 |
| $60000 | $60000 | ||
| Dividend Revenue | |||
|---|---|---|---|
| Debit | Credit | ||
| Income Statement | $3180 | Cash | $3180 |
| $3180 | $3180 | ||
| Equity in Earnings of Larsen | |||
|---|---|---|---|
| Debit | Credit | ||
| Investment in larsen’s Stock | $38500 | ||
| Ending balance | $38500 | ||
| $38500 | $38500 | ||
| Unrealized Holding gain on Available for Sale Securities | |||
|---|---|---|---|
| Debit | Credit | ||
| Other Comprehensive Income-Accumulated Other Comprehensive Income | $18000 | Long-term Investment – Available for Sale Securities | $18000 |
| $18000 | $18000 | ||
To determine
Requirement 3;
To prepare: Partial
Main solution:
| Water Source Co. | |
|---|---|
| Balance Sheet (Partial) | |
| As on December 31, 2016 | |
| Assets | |
| Non-Current assets; | |
| Long-term Investment – Available for Sale Securities | $60000 |
| Investment in Larsen’s Stock | $728500 |
| Liabilities and |
|
| Other Comprehensive Income-Accumulated Other Comprehensive Income | $18000 |
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
Need answer
What is the activity rate for the batch?
Please explain the correct approach for solving this general accounting question.
Chapter 15 Solutions
Horngren's Accounting, The Financial Chapters, Student Value Edition (11th Edition)
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...
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Similar questions
- Union National Bank has an issue of preferred stock with a $6.20 stated dividend that just sold for $105 per share. What is the bank’s cost of preferred stock? Financial accounting problemarrow_forwardI need assistance with this general accounting question using appropriate principles.arrow_forwardgive me solution plzarrow_forward
- What is the amount of total assets?arrow_forwardA man earned wages of $52,800, received $1,600 in interest from a savings account, and contributed $4,200 to a tax-deferred retirement plan. He was entitled to a personal exemption of $3,700 and had deductions totaling $5,400. Find his gross income, adjusted gross income, and taxable income. Accurate answerarrow_forwardCalculate depreciation expense on the machinearrow_forward
- Please provide the correct answer to this general accounting problem using accurate calculations.arrow_forwardHarlow Co. is a merchandising company. Last month the company's cost of goods sold was $65,200. The company's beginning merchandise inventory was $12,500 and its ending merchandise inventory was $22,400. What was the total amount of the company's merchandise purchases for the month? Need answerarrow_forwardFinancial accounting 12arrow_forward
- Financial accounting 34.67.89arrow_forwardPlease provide the solution to this general accounting question using proper accounting principles.arrow_forwardHarlow Co. is a merchandising company. Last month the company's cost of goods sold was $65,200. The company's beginning merchandise inventory was $12,500 and its ending merchandise inventory was $22,400. What was the total amount of the company's merchandise purchases for the month? Helparrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
AccountingAccountingISBN:9781337272094Author:WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.Publisher:Cengage Learning,
Accounting Information SystemsAccountingISBN:9781337619202Author:Hall, James A.Publisher:Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis...AccountingISBN:9780134475585Author:Srikant M. Datar, Madhav V. RajanPublisher:PEARSON
Intermediate AccountingAccountingISBN:9781259722660Author:J. David Spiceland, Mark W. Nelson, Wayne M ThomasPublisher:McGraw-Hill Education
Financial and Managerial AccountingAccountingISBN:9781259726705Author:John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting PrinciplesPublisher:McGraw-Hill Education
Accounting
Accounting
ISBN:9781337272094
Author:WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:Cengage Learning,
Accounting Information Systems
Accounting
ISBN:9781337619202
Author:Hall, James A.
Publisher:Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis...
Accounting
ISBN:9780134475585
Author:Srikant M. Datar, Madhav V. Rajan
Publisher:PEARSON
Intermediate Accounting
Accounting
ISBN:9781259722660
Author:J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:9781259726705
Author:John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:McGraw-Hill Education
Financial instruments products; Author: fi-compass;https://www.youtube.com/watch?v=gvxozM3TUIg;License: Standard Youtube License