Available-for-sale securities: A debt or equity securities which are purchased with the intention of selling it before its maturity, or selling prior to the longest time period in case if security is without its maturity are called available-for-sale securities. Held to maturity securities: Any securities purchased with an intention of holding the investments till maturity. Fair value: Fair value is a selling price which is agreed by the buyer and seller. (a) To prepare: To prepare the journal entries you consider necessary, including year-end entries (December 31), assuming these are available-for-sale securities. Given information: All the information related to W Company is provided in the question document.

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Answer 1

Question

Chapter 17, Problem 7P

To determine

Available-for-sale securities: A debt or equity securities which are purchased with the intention of selling it before its maturity, or selling prior to the longest time period in case if security is without its maturity are called available-for-sale securities.

Held to maturity securities: Any securities purchased with an intention of holding the investments till maturity.

Fair value: Fair value is a selling price which is agreed by the buyer and seller.

(a) To prepare: To prepare the journal entries you consider necessary, including year-end entries (December 31), assuming these are available-for-sale securities.

Given information: All the information related to W Company is provided in the question document.

To determine

(b) To explain: To explain the difference in the record of journal entries from part (a), in case W classified these as held-to-maturity investments.

Given information: All the information related to W Company is provided in the question document.

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Answer 2

Question

Chapter 17, Problem 7P

To determine

Available-for-sale securities: A debt or equity securities which are purchased with the intention of selling it before its maturity, or selling prior to the longest time period in case if security is without its maturity are called available-for-sale securities.

Held to maturity securities: Any securities purchased with an intention of holding the investments till maturity.

Fair value: Fair value is a selling price which is agreed by the buyer and seller.

(a) To prepare: To prepare the journal entries you consider necessary, including year-end entries (December 31), assuming these are available-for-sale securities.

Given information: All the information related to W Company is provided in the question document.

To determine

(b) To explain: To explain the difference in the record of journal entries from part (a), in case W classified these as held-to-maturity investments.

Given information: All the information related to W Company is provided in the question document.

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Answer 3

Question

Chapter 17, Problem 7P

To determine

Available-for-sale securities: A debt or equity securities which are purchased with the intention of selling it before its maturity, or selling prior to the longest time period in case if security is without its maturity are called available-for-sale securities.

Held to maturity securities: Any securities purchased with an intention of holding the investments till maturity.

Fair value: Fair value is a selling price which is agreed by the buyer and seller.

(a) To prepare: To prepare the journal entries you consider necessary, including year-end entries (December 31), assuming these are available-for-sale securities.

Given information: All the information related to W Company is provided in the question document.

To determine

(b) To explain: To explain the difference in the record of journal entries from part (a), in case W classified these as held-to-maturity investments.

Given information: All the information related to W Company is provided in the question document.

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Answer 4

Question

Chapter 17, Problem 7P

To determine

Available-for-sale securities: A debt or equity securities which are purchased with the intention of selling it before its maturity, or selling prior to the longest time period in case if security is without its maturity are called available-for-sale securities.

Held to maturity securities: Any securities purchased with an intention of holding the investments till maturity.

Fair value: Fair value is a selling price which is agreed by the buyer and seller.

(a) To prepare: To prepare the journal entries you consider necessary, including year-end entries (December 31), assuming these are available-for-sale securities.

Given information: All the information related to W Company is provided in the question document.

To determine

(b) To explain: To explain the difference in the record of journal entries from part (a), in case W classified these as held-to-maturity investments.

Given information: All the information related to W Company is provided in the question document.

Expert Solution & Answer

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Answer 5

Chapter 17, Problem 7P

To determine

Available-for-sale securities: A debt or equity securities which are purchased with the intention of selling it before its maturity, or selling prior to the longest time period in case if security is without its maturity are called available-for-sale securities.

Held to maturity securities: Any securities purchased with an intention of holding the investments till maturity.

Fair value: Fair value is a selling price which is agreed by the buyer and seller.

(a) To prepare: To prepare the journal entries you consider necessary, including year-end entries (December 31), assuming these are available-for-sale securities.

Given information: All the information related to W Company is provided in the question document.

To determine

(b) To explain: To explain the difference in the record of journal entries from part (a), in case W classified these as held-to-maturity investments.

Given information: All the information related to W Company is provided in the question document.

Answer 6

Chapter 17, Problem 7P

To determine

Available-for-sale securities: A debt or equity securities which are purchased with the intention of selling it before its maturity, or selling prior to the longest time period in case if security is without its maturity are called available-for-sale securities.

Held to maturity securities: Any securities purchased with an intention of holding the investments till maturity.

Fair value: Fair value is a selling price which is agreed by the buyer and seller.

(a) To prepare: To prepare the journal entries you consider necessary, including year-end entries (December 31), assuming these are available-for-sale securities.

Given information: All the information related to W Company is provided in the question document.

Answer 7

Chapter 17, Problem 7P

To determine

Available-for-sale securities: A debt or equity securities which are purchased with the intention of selling it before its maturity, or selling prior to the longest time period in case if security is without its maturity are called available-for-sale securities.

Held to maturity securities: Any securities purchased with an intention of holding the investments till maturity.

Fair value: Fair value is a selling price which is agreed by the buyer and seller.

(a) To prepare: To prepare the journal entries you consider necessary, including year-end entries (December 31), assuming these are available-for-sale securities.

Given information: All the information related to W Company is provided in the question document.

Answer 8

To determine

(b) To explain: To explain the difference in the record of journal entries from part (a), in case W classified these as held-to-maturity investments.

Given information: All the information related to W Company is provided in the question document.

Answer 9

To determine

(b) To explain: To explain the difference in the record of journal entries from part (a), in case W classified these as held-to-maturity investments.

Given information: All the information related to W Company is provided in the question document.

Answer 10

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Answer 11

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Answer 12

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Answer 13

Ch. 17 - Prob. 1Q Ch. 17 - 2. What purpose does the variety in bond features...Ch. 17 - 3. What is the cost of a long-term investment in...Ch. 17 - 4. Identify and explain the three types of...Ch. 17 - 5. When should a debt security be classified as...Ch. 17 - 6. Explain how trading debt securities are...Ch. 17 - 7. At what amount should trading,...Ch. 17 - Prob. 8Q Ch. 17 - 9. If the bonds in Question 8 are classified as...Ch. 17 - Prob. 10Q

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(b) To explain: To explain the difference in the record of journal entries from part (a), in case W classified these as held-to-maturity investments.

Given information: All the information related to W Company is provided in the question document.

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Chapter 17 Solutions

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(b) To explain: To explain the difference in the record of journal entries from part (a), in case W classified these as held-to-maturity investments. Given information: All the information related to W Company is provided in the question document.

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Chapter 17 Solutions

(b) To explain: To explain the difference in the record of journal entries from part (a), in case W classified these as held-to-maturity investments.

Given information: All the information related to W Company is provided in the question document.