Cornerstones of Financial Accounting
4th Edition
ISBN: 9781337690881
Author: Jay Rich, Jeff Jones
Publisher: Cengage Learning
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Chapter A2, Problem 19E
To determine
(a)
Introduction:
Investment in debt security (available for sale securities and trading securities) as well as equity securities is recorded using Fair Value Method.
To record:
To determine
(b)
Introduction:
Investment in debt security (available for sale securities and trading securities) as well as equity securities is recorded using Fair Value Method.
To explain:
The effect of
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At December 31, 2022, available-for-sale debt securities for Pharoah, Inc. are as follows. The securities are considered
to be a long-term investment.
Security
(a)
A
B
C
Total
Cost
$16,985
12,930
21,760
$51,675
Fair Value
$16.030
15,179
18,160
$49,369
Prepare the adjusting entry at December 31, 2022, to report the securities at fair value. (Credit account titles are
automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the
account titles and enter O for the amounts.)
Date Account Titles and Explanation
Dec.
31
Debit
Credit
At December 31, 2027, available-for-sale debt securities for Sunland, Inc. are as follows. The securities are considered to be a long-
term investment.
Security
Cost
Fair Value
A
$17,200
$16,500
B
12,000
13,700
C
23,500
19,000
$52,700
$49,200
(a)
Prepare the adjusting entry at December 31, 2027, to report the securities at fair value. (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 amounts.)
Date Account Titles and Explanation
Debit
Credit
Dec. 31
Please send answer as the chart
Chapter A2 Solutions
Cornerstones of Financial Accounting
Ch. A2 - How do long-term investments differ from...Ch. A2 - Prob. 2DQCh. A2 - Prob. 3DQCh. A2 - Prob. 4DQCh. A2 - Prob. 5DQCh. A2 - Prob. 6DQCh. A2 - Prob. 7DQCh. A2 - How does the equity method discourage the...Ch. A2 - Prob. 9DQCh. A2 - Prob. 10DQ
Ch. A2 - Prob. 11DQCh. A2 - Prob. 12DQCh. A2 - Prob. 13DQCh. A2 - Prob. 14DQCh. A2 - Prob. 15DQCh. A2 - Prob. 1MCQCh. A2 - Prob. 2MCQCh. A2 - Prob. 3MCQCh. A2 - Prob. 4MCQCh. A2 - Prob. 5MCQCh. A2 - Prob. 6MCQCh. A2 - Prob. 7MCQCh. A2 - Prob. 8MCQCh. A2 - Prob. 9MCQCh. A2 - Prob. 10MCQCh. A2 - Prob. 11MCQCh. A2 - When the market value of a companys...Ch. A2 - Prob. 13MCQCh. A2 - Prob. 14MCQCh. A2 - Prob. 15MCQCh. A2 - Prob. 16MCQCh. A2 - Prob. 17ECh. A2 - Trading Securities Pear Investments began...Ch. A2 - Prob. 19ECh. A2 - Prob. 20ECh. A2 - Adjusting the Allowance to Adjust Trading...Ch. A2 - Prob. 22ECh. A2 - Prob. 23ECh. A2 - Prob. 24ECh. A2 - Prob. 25ECh. A2 - Prob. 26ECh. A2 - Prob. 27ECh. A2 - Prob. 28ECh. A2 - Prob. 29ECh. A2 - Prob. 30E
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