Subsidiary: Subsidiary is the part of parent. The companies who make investment in the parent companies are the subsidiary companies. Parent: The company having more than 50% controlling is parent. The investee invests in the parent company to earn high percentage of return. Interest Revenue: The investor invest in the bonds of companies and earn a fixed percentage of interest in return of the amount invested by them in the company, So the interest receive by the investor is known as the interest revenue and it is the income of the investor. Current Assets: Current assets are assets which are expected to be converted into cash and cash equivalent within a year. They are also used to pay the current liabilities of the company. It includes cash, short term investment, accounts receivables and other current assets. Fair Value: The fair value is the original value of the investment. The companies have to calculate the value of investment yearend with the help of fair value to record in the books of accounts. Equity Method: It is a method of ascertaining the profit earn or loss suffered by the companies from their investments. The equity method is a type of accounting technique. To identify: Select the term or phrase for the given statement.

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Answer 1

Question

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

Chapter C, Problem 12QS

To determine

Subsidiary:

Subsidiary is the part of parent. The companies who make investment in the parent companies are the subsidiary companies.

Parent:

The company having more than 50% controlling is parent. The investee invests in the parent company to earn high percentage of return.

Interest Revenue:

The investor invest in the bonds of companies and earn a fixed percentage of interest in return of the amount invested by them in the company, So the interest receive by the investor is known as the interest revenue and it is the income of the investor.

Current Assets:

Current assets are assets which are expected to be converted into cash and cash equivalent within a year. They are also used to pay the current liabilities of the company. It includes cash, short term investment, accounts receivables and other current assets.

Fair Value:

The fair value is the original value of the investment. The companies have to calculate the value of investment yearend with the help of fair value to record in the books of accounts.

Equity Method:

It is a method of ascertaining the profit earn or loss suffered by the companies from their investments. The equity method is a type of accounting technique.

To identify: Select the term or phrase for the given statement.

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Prepare Tiker Company’s journal entries to record the following transactions and the adjusting entry to record the fair value of the stock investments portfolio. This is the first and only time the company purchased such securities. May 9 Purchases 200 shares of Higo stock as a short-term investment at a cost of $30 per share. Tiker has insignificant influence over Higo. June 2 Sells 20 shares of its investment in Higo stock ($600 cost) at $33 per share. Dec. 31 The closing market price (fair value) of the Higo stock is $23 per share.

Prepare Tiker Company's journal entries to record the following transactions and the adjusting entry to record the fair value of the stock investments portfolio. This is the first and only time the company purchased such securities. May 9 Purchases 240 shares of Higo stock as a short-term investment at a cost of $29 per share. Tiker has insignificant influence over Higo. June 2 Sells 40 shares of its investment in Higo stock ($1,160 cost) at $32 per share. Dec. 31 The closing market price (fair value) of the Higo stock is $27 per share. Purchases 240 shares of Higo stock as a short-term investment at a cost of $29 per share. Tiker has insignificant influence over Higo. Note: Enter debits before credits. Date General Journal Debit Credit May 09 Sells 40 shares of its investment in Higo stock at $32 per share. Note: Enter debits before credits.…

Prepare Tiker Company's journal entries to record the following transactions and the adjusting entry to record the fair value of the stock investments portfolio. This is the first and only time the company purchased such securities. May 9 Purchases 380 shares of Higo stock as a short-term investment at a cost of $43 per share. Tiker has insignificant influence over Higo. June 2 Sells 140 shares of its investment in Higo stock ($6,020 cost) at $46 per share. December 31 The closing market price (fair value) of the Higo stock is $41 per share. View transaction list Journal entry worksheet 1 2 Purchases 380 shares of Higo stock as a short-term investment at a cost of $43 per share. Tiker has insignificant influence over Higo. Date May 09 3 Note: Enter debits before credits. Record entry General Journal Clear entry Debit Credit View general journal

Answer 2

Question

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

Chapter C, Problem 12QS

To determine

Subsidiary:

Subsidiary is the part of parent. The companies who make investment in the parent companies are the subsidiary companies.

Parent:

The company having more than 50% controlling is parent. The investee invests in the parent company to earn high percentage of return.

Interest Revenue:

The investor invest in the bonds of companies and earn a fixed percentage of interest in return of the amount invested by them in the company, So the interest receive by the investor is known as the interest revenue and it is the income of the investor.

Current Assets:

Current assets are assets which are expected to be converted into cash and cash equivalent within a year. They are also used to pay the current liabilities of the company. It includes cash, short term investment, accounts receivables and other current assets.

Fair Value:

The fair value is the original value of the investment. The companies have to calculate the value of investment yearend with the help of fair value to record in the books of accounts.

Equity Method:

It is a method of ascertaining the profit earn or loss suffered by the companies from their investments. The equity method is a type of accounting technique.

To identify: Select the term or phrase for the given statement.

Expert Solution & Answer

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Check out a sample textbook solution

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Answer 3

Question

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

Chapter C, Problem 12QS

To determine

Subsidiary:

Subsidiary is the part of parent. The companies who make investment in the parent companies are the subsidiary companies.

Parent:

The company having more than 50% controlling is parent. The investee invests in the parent company to earn high percentage of return.

Interest Revenue:

The investor invest in the bonds of companies and earn a fixed percentage of interest in return of the amount invested by them in the company, So the interest receive by the investor is known as the interest revenue and it is the income of the investor.

Current Assets:

Current assets are assets which are expected to be converted into cash and cash equivalent within a year. They are also used to pay the current liabilities of the company. It includes cash, short term investment, accounts receivables and other current assets.

Fair Value:

The fair value is the original value of the investment. The companies have to calculate the value of investment yearend with the help of fair value to record in the books of accounts.

Equity Method:

It is a method of ascertaining the profit earn or loss suffered by the companies from their investments. The equity method is a type of accounting technique.

To identify: Select the term or phrase for the given statement.

Expert Solution & Answer

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Check out a sample textbook solution

See solution

Answer 4

Question

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

Chapter C, Problem 12QS

To determine