Financial Reporting, Financial Statement Analysis and Valuation
8th Edition
ISBN: 9781285190907
Author: James M. Wahlen, Stephen P. Baginski, Mark Bradshaw
Publisher: Cengage Learning
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Chapter 2, Problem 21PC
(1)
To determine
Identify the effect of the following transactions on a firm using the analytical framework.
(2)
To determine
Identify the effect of the following transactions on a firm using the analytical framework.
(3)
To determine
Identify the effect of the following transactions on a firm using the analytical framework.
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PROVIDE ANSWER IN ENGLISH ONLY USED ATTACHED IMAGE FOR INFORMATION
a. Show how each of these investments are reported on the Munger.Com balance sheet.
b. For assets that are marked to market, indicate where the unrealized value fluctuation is reported(in net income and/or in comprehensive income).
For reference check a) total securities is , $4,220
Instructions:
(Assume all transactions during the year were for cash.)
a. Prepare the journal entry to record the sale of the available-for-sale debt securities in 2020.
b. Prepare the journal entry to record the Unrealized Holding Gain or Loss for 2020.
c. Prepare a statement of comprehensive income for 2020.
d. Prepare a balance sheet as of December 31, 2020
Indicate the effect of the transactions listed in the following table on total current assets, current ration, and net income. Use (+) to indicate an increase, (-) to indicate a decrease, and (0) to indicate either no effect or an indeterminate effect. Be prepared to state any necessary assumptions and assume an initial current ratio of more than 1.0.
Marketable securities are sold below cost.
Chapter 2 Solutions
Financial Reporting, Financial Statement Analysis and Valuation
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