Intermediate Accounting
1st Edition
ISBN: 9780132162302
Author: Elizabeth A. Gordon, Jana S. Raedy, Alexander J. Sannella
Publisher: PEARSON
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Question
Chapter 16, Problem 16.4E
a.
To determine
The journal entry to record the acquisition of investments.
b.
To determine
To prepare: The journal entry to record the end of Year 1 fair value adjustment.
c.
To determine
To prepare: The journal entry to record the sale.
d.
To determine
To prepare: The journal entry to record the end of Year 2 fair value adjustment.
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Students have asked these similar questions
Armadillo Enterprises acquired the following equity investmentsat the beginning of year 1 as trading investments.
Description
Number of shares
Market price per share
Total price
Finestra Company
15,000
x $25
$387,500
BVD Company
20,000
X$18
$360,000
Market values at theend of Years 1 &2 are presented
below:
Market/Fair Value
End of year 1
End of year 2
Finestra Company
$19
$23
BVD Company
|$22
$28
REQUIREMENTS:
Prepare the journal entry to record the acquisition of
theinvestments.
Prepare the adjusting journal entry required at the end of year1.
Armadillo Enterprises sells 15,000 shares of BVD Company for $16at the beginning of year 2. Prepare the journal entry to record thesale.
Prepare the adjusting journal entry required at the end of year2.
Assume that ArmadilloEnterprises now holds these investments asavailable-for-sale.
Prepare the journal entry to record the acquisition of theinvestments.
Prepare the adjusting journal entry required at the end of year1.
Armadillo Enterprises…
How much is the unrealized gain (loss) recognized in other comprehensive
income on December 31, 20x1?
Karen Co. purchased the following equity securities on January 1, 20x1 for a total amount of
P360,000.
Cost
Alaska Co. preference shares
P200,000
160,000
Valdez Co. ordinary shares
Totals
P360,000
The shares did not qualify for recognition as held for trading, thus they were classified as
investment in equity securities measured at fair value through other comprehensive income.
On December 31, 20x1, the portfolio of Karen Co. comprised the following.
Fair value - 12/31/x1
Alaska Co. preference shares
P240,000
60,000
Valdez Co. ordinary shares
Total
P300,000
On December 31, 20x2, the portfolio of Karen Co. comprised the following:
Fair value-12/31/x2
Alaska Co. preference shares
P220,000
Valdez Co. ordinary shares
180,000
Total
P400,000
On February 2, 20x3, all of the Alaska Co. preference shares were sold for P160,000 net of transaction
costs.
60,000
100,000
O (60,000)
Please help me to solve this problem
Chapter 16 Solutions
Intermediate Accounting
Ch. 16 - Prob. 16.1QCh. 16 - Is reporting an investment at its cost considered...Ch. 16 - Prob. 16.3QCh. 16 - Prob. 16.4QCh. 16 - Prob. 16.5QCh. 16 - Prob. 16.6QCh. 16 - What categories can managers use to classify...Ch. 16 - When is the equity method of accounting for...Ch. 16 - Prob. 16.9QCh. 16 - Can companies apply the fair value option to all...
Ch. 16 - What is the fair value hierarchy for investment...Ch. 16 - Prob. 16.12QCh. 16 - Prob. 16.13QCh. 16 - Prob. 16.14QCh. 16 - Prob. 16.15QCh. 16 - Prob. 16.16QCh. 16 - Prob. 16.17QCh. 16 - Deutsch Imports has three securities in its...Ch. 16 - Prob. 16.2MCCh. 16 - Prob. 16.3MCCh. 16 - Prob. 16.4MCCh. 16 - Prob. 16.5MCCh. 16 - Prob. 16.6MCCh. 16 - Prob. 16.7MCCh. 16 - Prob. 16.1BECh. 16 - Prob. 16.2BECh. 16 - Debt Investments, Trading. Using the information...Ch. 16 - Prob. 16.4BECh. 16 - Prob. 16.5BECh. 16 - Prob. 16.6BECh. 16 - Prob. 16.7BECh. 16 - Prob. 16.8BECh. 16 - Notes Receivable. Aaron Anatole accepted a...Ch. 16 - Prob. 16.10BECh. 16 - Prob. 16.11BECh. 16 - Prob. 16.12BECh. 16 - Debt Investments. Impairments. IFRS. For each debt...Ch. 16 - Prob. 16.14BECh. 16 - Prob. 16.15BECh. 16 - Prob. 16.1ECh. 16 - Prob. 16.2ECh. 16 - Prob. 16.3ECh. 16 - Prob. 16.4ECh. 16 - Prob. 16.5ECh. 16 - Prob. 16.6ECh. 16 - Debt and Equity Investments, Available-for-Sale...Ch. 16 - Prob. 16.8ECh. 16 - Prob. 16.9ECh. 16 - Prob. 16.11ECh. 16 - Equity-Investments, Equity Method. Book Value of...Ch. 16 - Prob. 16.13ECh. 16 - Prob. 16.14ECh. 16 - Notes Receivable. Each of the following three...Ch. 16 - Prob. 16.16ECh. 16 - Prob. 16.17ECh. 16 - Prob. 16.18ECh. 16 - Prob. 16.19ECh. 16 - Prob. 16.20ECh. 16 - Prob. 16.21ECh. 16 - Prob. 16.22ECh. 16 - Prob. 16.23ECh. 16 - Prob. 16.1PCh. 16 - Debt Investments, Trading. Freder Software Group...Ch. 16 - Prob. 16.3PCh. 16 - Equity Investments, Readily Determinable Fair...Ch. 16 - Prob. 16.5PCh. 16 - Prob. 16.6PCh. 16 - Prob. 16.7PCh. 16 - Prob. 16.8PCh. 16 - Prob. 16.9PCh. 16 - Equity Investments, Equity Method, Fair Value...Ch. 16 - Prob. 16.11PCh. 16 - Prob. 16.12PCh. 16 - Prob. 16.13PCh. 16 - Prob. 16.14PCh. 16 - Prob. 16.15PCh. 16 - Prob. 16.16PCh. 16 - Prob. 16.17PCh. 16 - Prob. 1JCCh. 16 - Prob. 2JCCh. 16 - Prob. 1FSACCh. 16 - Prob. 1SSCCh. 16 - Prob. 1BCCCh. 16 - Prob. 2BCC
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