Videos
Income Statement: The income statement is a report which shows the company’s financial performance for the particular period of time. The statement shows the amount of revenues generated and expenses incurred by an organization and also the amount of the net profit or loss made by the organization.
Fair value: Fair value is a selling price which is agreed by the buyer and seller. A probable estimate of the market price of good, service or asset based on the market situation is termed fair value.
Unrealized holding gains and losses: An unrealized gain is a profit recorded on paper results from the investment. It occurs when shares prices increase after investor purchases it, but an individual has to sell it, till the time it is not sold the amount of increase in share price is recorded as an unrealized gain.
An unrealized loss is a loss recorded on paper results from the investment. It occurs when shares prices decrease after investor purchases it, but an individual has to sell it, till the time it is not sold the amount of decrease in share price is recorded as an unrealized loss.
Other expenses and losses: Other expenses and losses are the losses which are not related to primary business operations, for example, foreign exchange losses.
(a) To determine: To determine the reporting of F Corp. under the balance sheet and income statement for December 31, 2017, related to the securities presented in the question document.
Given information: All the information related to F Corp. is presented in the question document.
(b) To determine: To determine the reporting of F Corp. under the balance sheet and income statement for December 31, 2018, related to the securities presented in the question document.
Given information: All the information related to F Corp. is presented in the question document.
Balance Sheet on December 31, 2018 |
|
Equity Investments, at fair value |
$94,000 |
(Reported as current or noncurrent based on intent) |
|
Income Statement for year ended December 31, 2018 |
|
Other Expenses and Losses |
|
Loss on Sale of Investments |
$1,800 |
Unrealized Holding Loss (see Schedule A) |
38,000 |
(c) To determine: To determine the reporting of F Corp. under the balance sheet and income statement for December 31, 2019, related to the securities presented in the question document.
Given information: All the information related to F Corp. is presented in the question document.
Want to see the full answer?
Check out a sample textbook solution
Chapter 17 Solutions
Intermediate Accounting
- Can you help me with accounting questionsarrow_forwardA product has a selling price of $63, variable costs of $55, and fixed costs are $72,000. How many units must be sold to break even? A) 3,000 B) 5,000 C) 2,500 D) 9,000 correct answerarrow_forwardWhat is the Crestwood financials' dividend payout ratio of this financial accounting question?arrow_forward
- At the beginning of of the year, Lexington Corporation had total assets of $920,000 and total liabilities of $580,000. During the year, total liabilities increased by $120,000, and stockholders' equity decreased by $80,000. What is the amount of total assets at the end of the year?arrow_forwardWhat is the net income?arrow_forwardBellmont Manufacturing usedarrow_forward
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