Long term investment: Long term investment is the investment for long period generally for more than one year. The long term investment helps in the purchase of fixed assets, expansion, or for growth of the company. It shows under assets head of the balance sheet. Equity security: It is the investment in the stock of another company. Sometime the company may invest in the common stock of another company and earn the huge return from that. Equity security involves high risk as the return is received after all the dues of the company. Available for sale security: These securities are different from the held to maturity security. It includes the debt and equity securities. The main reason to purchase this security is to earn interest and dividend on investment. Journal Entry : Journal is the primary record of the business transaction in chronological (date wise) order. Journal Entry contains two effects one is debit and other is credit, under double entry book keeping system. 1. To explain: Either fair value or cost method used to account for the given transaction in the financial statement.

Question

Want to see the full answer?

Answer 1

Question

Chapter C, Problem 10QS

To determine

Long term investment:

Long term investment is the investment for long period generally for more than one year. The long term investment helps in the purchase of fixed assets, expansion, or for growth of the company. It shows under assets head of the balance sheet.

Equity security:

It is the investment in the stock of another company. Sometime the company may invest in the common stock of another company and earn the huge return from that. Equity security involves high risk as the return is received after all the dues of the company.

Available for sale security:

These securities are different from the held to maturity security. It includes the debt and equity securities. The main reason to purchase this security is to earn interest and dividend on investment.

Journal Entry:

Journal is the primary record of the business transaction in chronological (date wise) order. Journal Entry contains two effects one is debit and other is credit, under double entry book keeping system.

1.

To explain: Either fair value or cost method used to account for the given transaction in the financial statement.

2.

To determine

To prepare: Journal entries to record the transactions.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Students have asked these similar questions

Can you provide the valid approach to solving this financial accounting question with suitable standards?

Financial Accounting Question

Can you help me solve this general accounting problem using the correct accounting process?

Answer 2

Question

Chapter C, Problem 10QS

To determine

Long term investment:

Long term investment is the investment for long period generally for more than one year. The long term investment helps in the purchase of fixed assets, expansion, or for growth of the company. It shows under assets head of the balance sheet.

Equity security:

It is the investment in the stock of another company. Sometime the company may invest in the common stock of another company and earn the huge return from that. Equity security involves high risk as the return is received after all the dues of the company.

Available for sale security:

These securities are different from the held to maturity security. It includes the debt and equity securities. The main reason to purchase this security is to earn interest and dividend on investment.

Journal Entry:

Journal is the primary record of the business transaction in chronological (date wise) order. Journal Entry contains two effects one is debit and other is credit, under double entry book keeping system.

1.

To explain: Either fair value or cost method used to account for the given transaction in the financial statement.

2.

To determine

To prepare: Journal entries to record the transactions.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 3

Question

Chapter C, Problem 10QS

To determine

Long term investment:

Long term investment is the investment for long period generally for more than one year. The long term investment helps in the purchase of fixed assets, expansion, or for growth of the company. It shows under assets head of the balance sheet.

Equity security:

It is the investment in the stock of another company. Sometime the company may invest in the common stock of another company and earn the huge return from that. Equity security involves high risk as the return is received after all the dues of the company.

Available for sale security:

These securities are different from the held to maturity security. It includes the debt and equity securities. The main reason to purchase this security is to earn interest and dividend on investment.

Journal Entry:

Journal is the primary record of the business transaction in chronological (date wise) order. Journal Entry contains two effects one is debit and other is credit, under double entry book keeping system.

1.

To explain: Either fair value or cost method used to account for the given transaction in the financial statement.

2.

To determine

To prepare: Journal entries to record the transactions.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 4

Question

Chapter C, Problem 10QS

To determine

Long term investment:

Long term investment is the investment for long period generally for more than one year. The long term investment helps in the purchase of fixed assets, expansion, or for growth of the company. It shows under assets head of the balance sheet.

Equity security:

It is the investment in the stock of another company. Sometime the company may invest in the common stock of another company and earn the huge return from that. Equity security involves high risk as the return is received after all the dues of the company.

Available for sale security:

These securities are different from the held to maturity security. It includes the debt and equity securities. The main reason to purchase this security is to earn interest and dividend on investment.

Journal Entry:

Journal is the primary record of the business transaction in chronological (date wise) order. Journal Entry contains two effects one is debit and other is credit, under double entry book keeping system.

1.

To explain: Either fair value or cost method used to account for the given transaction in the financial statement.

2.

To determine

To prepare: Journal entries to record the transactions.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 5

Chapter C, Problem 10QS

To determine

Long term investment:

Long term investment is the investment for long period generally for more than one year. The long term investment helps in the purchase of fixed assets, expansion, or for growth of the company. It shows under assets head of the balance sheet.

Equity security:

It is the investment in the stock of another company. Sometime the company may invest in the common stock of another company and earn the huge return from that. Equity security involves high risk as the return is received after all the dues of the company.

Available for sale security:

These securities are different from the held to maturity security. It includes the debt and equity securities. The main reason to purchase this security is to earn interest and dividend on investment.

Journal Entry:

Journal is the primary record of the business transaction in chronological (date wise) order. Journal Entry contains two effects one is debit and other is credit, under double entry book keeping system.

1.

To explain: Either fair value or cost method used to account for the given transaction in the financial statement.

2.

To determine

To prepare: Journal entries to record the transactions.

Answer 6

Chapter C, Problem 10QS

To determine

Long term investment:

Long term investment is the investment for long period generally for more than one year. The long term investment helps in the purchase of fixed assets, expansion, or for growth of the company. It shows under assets head of the balance sheet.

Equity security:

It is the investment in the stock of another company. Sometime the company may invest in the common stock of another company and earn the huge return from that. Equity security involves high risk as the return is received after all the dues of the company.

Available for sale security:

These securities are different from the held to maturity security. It includes the debt and equity securities. The main reason to purchase this security is to earn interest and dividend on investment.

Journal Entry:

Journal is the primary record of the business transaction in chronological (date wise) order. Journal Entry contains two effects one is debit and other is credit, under double entry book keeping system.

1.

To explain: Either fair value or cost method used to account for the given transaction in the financial statement.

Answer 7

Chapter C, Problem 10QS

To determine

Long term investment:

Long term investment is the investment for long period generally for more than one year. The long term investment helps in the purchase of fixed assets, expansion, or for growth of the company. It shows under assets head of the balance sheet.

Equity security:

It is the investment in the stock of another company. Sometime the company may invest in the common stock of another company and earn the huge return from that. Equity security involves high risk as the return is received after all the dues of the company.

Available for sale security:

These securities are different from the held to maturity security. It includes the debt and equity securities. The main reason to purchase this security is to earn interest and dividend on investment.

Journal Entry:

Journal is the primary record of the business transaction in chronological (date wise) order. Journal Entry contains two effects one is debit and other is credit, under double entry book keeping system.

1.

To explain: Either fair value or cost method used to account for the given transaction in the financial statement.

Answer 8

2.

To determine

To prepare: Journal entries to record the transactions.

Answer 9

2.

To determine

To prepare: Journal entries to record the transactions.

Answer 10

Expert Solution & Answer

Answer 11

Expert Solution & Answer

Answer 12

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 13

Ch. C - Prob. 1MCQ Ch. C - Prob. 2MCQ Ch. C - Prob. 3MCQ Ch. C - Prob. 4MCQ Ch. C - Prob. 5MCQ Ch. C - Prob. 1DQ Ch. C - Prob. 2DQ Ch. C - Prob. 3DQ Ch. C - Prob. 4DQ Ch. C - Prob. 5DQ

Solution Summary: The author explains the fair value or cost method used to account for the given transaction in the financial statement.

Videos

To prepare: Journal entries to record the transactions.

Want to see the full answer?

Chapter C Solutions