Intermediate Accounting
1st Edition
ISBN: 9780132162302
Author: Elizabeth A. Gordon, Jana S. Raedy, Alexander J. Sannella
Publisher: PEARSON
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Chapter 16, Problem 16.5P
To determine
To prepare: The general journal entries for the given transactions.
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Cardinal Paz Corp. carries an account in its general ledger called Investments, which contained debits for investment purchases, and
no credits, with the following descriptions.
Feb. 1, 2025
April 1
July 1
(a)
Sharapova Company common stock, $100 par, 200 shares
U.S. government bonds, 11%, due April 1, 2035, interest payable April 1 and October 1, 110 bonds of
$1,000 par each
McGrath Company 12% bonds, par $50,000, dated March 1, 2025, purchased at 104 plus accrued
interest, interest payable annually on March 1, due March 1, 2045
Account Titles and Explanation
Debt Investments
Prepare entries necessary to classify the amounts into proper accounts, assuming that the debt securities are classified as
available-for-sale. Sharapova has 200,000 shares outstanding. (List all debit entries before credit entries. Credit account titles are
automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and
enter o for the…
Use the following information on a company’s investments in equity securities to answer questions 1- 2 below.
The company’s accounting year ends December 31.
Investment
Date of acquisition
Cost
Fair value
12/31/16
Date sold
Selling price
Ajax Company stock
6/20/16
$40,000
$35,000
2/10/17
$32,000
Bril Corporation stock
5/1/16
20,000
N/A
11/15/16
26,000
Coy Company stock
8/2/16
16,000
16,500
1/17/17
23,000
1. If the above investments are categorized as trading securities, what amount is reported for gain or loss on securities, on the 2016 income statement?
2. If the above investments are categorized as trading securities, what amount is reported for gain or loss on securities, on the 2017 income statement?
I need the answer as soon as possible
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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- Tamarisk Corp. carries an account in its general ledger called Investments, which contained debits for investment purchases, and no credits, with the following descriptions. F-b. 1.2025 July 1 (a) (5) Sharapova Company common stock, $100 par, 200 shares U.S. government bonds, 11%, due April 1, 2035, interest payable April 1 and October 1, 108 bonds of 31000 par cách McGrath Company 12% bonds, par $54,100, dated March 1, 2025, purchased at 104 plus accrued interest, interest payable annually on March 1, due March 1, 2045 Your answer is partially correct. Prepare the entry to record the accrued interest and the amortization of premium on December 31, 2025, using the straight-line method. (List all debit entries before credit entries. Credit account titles are automatically indented when amount is entered. Do not indent manually. Ifna entry is required, select "No Entry for the account titles and enter Ofor the amounts. Round answers to 0 decimal places. 5.19251 Date Account Titles and…arrow_forward(Debt and Equity Investments) Cardinal Paz Corp. carries an account in its general ledger called Investments, which contained debits for investment purchases, and no credits, with the following descriptions. Feb. 1, 2017 Sharapova Company common stock, $100 par, 200 shares : $ 37,400 April 1 U.S. government bonds, 11%, due April 1, 2027, interest payableApril 1 and October 1, 110 bonds of $1,000 par each : 110,000 July 1 McGrath Company 12% bonds, par $50,000, dated March 1, 2017,purchased at 104 plus accrued interest, interest payable annually on March 1, due March 1, 2037 : 54,000 Instructions(Round all computations to the nearest dollar.)(a) Prepare entries necessary to classify the amounts into proper accounts, assuming that the debt securities are classified as available-for-sale.(b) Prepare the entry to record the accrued interest and the amortization of premium on December 31, 2017, using the straight-line method.(c) The fair values of the investments on December…arrow_forwardCase 2-1. Audit of investment in equity investments at foir volue through profit or loss; Substantive audit procedures. You were able to obtain the following iedger details of Equity investment-FVTPL in connection with your audit of the Strong Corporation for the year ended December 31, 2020: Credit Date Jan. 10 Particulars Purchase of Alpha Co. - 6,000 shares Debit P1,440,000 Feb. 20 Purchase of Beta Co. - 7,200 shares Sale of Beta Co. - 2,400 shares 1,800,000 Mar. 1 540,000 Receipt of Alpha share dividend- Offsetting Credit to retained earnings Sale of Alpha - 4,800 shares Sale of Alpha - 1,200 shares May 31 132,000 Aug. 15 Sept. 1 1,176,000 276,000 The following information was obtained during your examination: • Fram independent sources, you determine the follawing dividend information for Alpha Co. in 2020: Declared 01/02 0s/02 08/01 Record 01/15 05/15 Nature Cash Payment 01/31 Rate P20/share Share 05/31 10% Cash 08/30 09/15 P30/share • Closing market quotation as at December 31,…arrow_forward
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