Use the following information for the Quick Study below. (Static) [The following information applies to the questions displayed below] On December 31, Reggit Company held the following short-term investments in its portfolio of available-for-sale debt securities. Reggit had no short-term investments in its prior accounting periods. Available for Sale Securities Verrizano Corporation bonds Preble Corporation nates Lucerne Company bonds i QS 15-9 (Static) Adjusting available-for-sale debt securities to fair value LO P3 Prepare the December 31 adjusting entry to report these investments at fair value Fair Value Adjustment Computation of fair value adjustment. General Journal Complete this question by entering your answers in the tabs below. Cost $ 89,600 70,600 86,500 Verrizano Corporation bonds Preble Corporation notes Luceme Company bonds Total Fair Value Adjustment Computation-Available for Sale Portfolio Unrealized Amount $ Cost Fair Value $ 91,600 62,900 83,100 Fair Value 89 600 $ 91,600 70 600 62.900 86.500 83,100 $ 246,700 $ 237,600 Unrealized Loss

Use the following information for the Quick Study below. (Static) [The following information applies to the questions displayed below] On December 31, Reggit Company held the following short-term investments in its portfolio of available-for-sale debt securities. Reggit had no short-term investments in its prior accounting periods. Available for Sale Securities Verrizano Corporation bonds Preble Corporation nates Lucerne Company bonds i QS 15-9 (Static) Adjusting available-for-sale debt securities to fair value LO P3 Prepare the December 31 adjusting entry to report these investments at fair value Fair Value Adjustment Computation of fair value adjustment. General Journal Complete this question by entering your answers in the tabs below. Cost $ 89,600 70,600 86,500 Verrizano Corporation bonds Preble Corporation notes Luceme Company bonds Total Fair Value Adjustment Computation-Available for Sale Portfolio Unrealized Amount $ Cost Fair Value $ 91,600 62,900 83,100 Fair Value 89 600 $ 91,600 70 600 62.900 86.500 83,100 $ 246,700 $ 237,600 Unrealized Loss

Financial Accounting

15th Edition

ISBN:9781337272124

Author:Carl Warren, James M. Reeve, Jonathan Duchac

Publisher:Carl Warren, James M. Reeve, Jonathan Duchac

Chapter15: Investments And Fair Value Accounting

Section: Chapter Questions

Problem 1PA: Soto Industries Inc. is an athletic footware company that began operations on January 1, Year 1. The...

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Soto Industries Inc. is an athletic footware company that began operations on January 1, Year 1. The following transactions relate to debt investments acquired by Soto Industries Inc., which has a fiscal year ending on December 31: Instructions 1. Journalize the entries to record these transactions. 2. If the bond portfolio is classified as available for sale, what impact would this have on financial statement disclosure?
On December 31, Reggit Company held the following short-term investments in its portfolio of available-for-sale debt securities. Reggit had no short-term investments in its prior accounting periods. Available-for-Sale Securities Verrizano Corporation bonds Preble Corporation notes Lucerne Company bonds epare the December 31 adjusting entry to report these investments at fair value. Fair Value Adjustment Computation of fair value adjustment. Complete this question by entering your answers in the tabs below. General Journal Cost $ 76,000 57,000 72,000 Verrizano Corporation bonds Preble Corporation notes Lucerne Company bonds Total Fair Value Adjustment Computation - Available for Sale Portfolio Unrealized Amount Cost $ Fair Value $ 74,480 50,730 69,120 Fair Value 76,000 $ 74,480 57,000 50,730 72,000 69,120 $ 205,000 $ 194,330 CO
On December 31, Reggit Company held the following short-term investments in its portfolio of availablefor- sale debt securities. Reggit had no short-term investments in its prior accounting periods. Prepare the December 31 adjusting entry to report these investments at fair value. Available-for-Sale Securities Cost Fair Value Verrizano Corporation bonds $89,600 $91,600 Preble Corporation notes 70,600 62,900 Lucerne Company bonds 86,500 83,100
On December 31, Reggit Company held the following short-term investments in its portfolio of available-for-sale debt securities. Reggit had no short-term investments in its prior accounting periods. Available-for-Sale Securities Verrizano Corporation bonds Preble Corporation notes Lucerne Company bonds Cost $89,600 70,600 86,500 Fair Value $91,600 62,900 83,100 repare the December 31 adjusting entry to report these investments at fair value.
Debt investment transactions, available-for-sale valuationSoto Industries Inc. in an athletic foot ware company that beganoperations on January 1, Year 1. The following transactions relate to debtinvestments acquired by Solo Industries Inc., which has a fiscal yearending on December 31: Instructions1. Journalize the entries to record these transactions.2. If the bond portfolio is classified as available for sale, what impactwould this have on financial statement disclosure?
Waterton Corporation reported that short-term investments in debt securities consisted of the following (in millions): Amortized Cost Fair Value December 31 Short-term investments available - for - sale debt securities $1,373.6 $1,373.8 Short-term investments-trading debt securities 161.8 132.0 Total short-term investments $1,535.4 $1,505.8 Which of the following is true? Select one: a. Unrealized losses of $29.8 million on trading securities are included in annual income. b. Waterton's year-end balance sheet includes short-term investments of $1,535.4 million. c. There are no net unrealized gains on available-for-sale securities. d. Accumulated other comprehensive income included no unrealized gains or losses. e. None of these are correct
! Required information [The following information applies to the questions displayed below.] On December 31, Reggit Company held the following short-term investments in its portfolio of available-for-sale debt securities. Reggit had no short-term investments in its prior accounting periods. Available-for-Sale Securities Verrizano Corporation bonds Preble Corporation notes Lucerne Company bonds Prepare the December 31 adjusting entry to report these investments at fair value. General Journal Complete this question by entering your answers in the tabs below. Fair Value Adjustment Computation of fair value adjustment. Cost $ 68,000 49,000 64,000 Verrizano Corporation bonds Preble Corporation notes Lucerne Company bonds Total Fair Value Adjustment Computation - Available for Sale Portfolio Unrealized Amount Cost Fair Value $ 66,640 43,610 61,440 Fair Value $ 68,000 $ 66,640 49,000 43,610 64,000 61,440 $ 181,000 $ 171,690 Unrealized Loss
4 Required information. [The following information applies to the questions displayed below.] On December 31, Reggit Company held the following short-term investments in its portfolio of available-for-sale debt securities. Reggit had no short-term investments in its prior accounting periods. Available-for-Sale Securities Verrizano Corporation bonds Preble Corporation notes Lucerne Company bonds Cost $ 68,000 49,000 64,000 Prepare the December 31 adjusting entry to report these investments at fair value. General Journal Fair Value $ 66,640 43,610 61,440 Complete this question by entering your answers in the tabs below. Fair Value Adjustment Computation of fair value adjustment.
Gecko Investments has the following data regarding their debt investments as of December 31, 2021: Original Cost Amortized Cost Market Value Trading Bonds 95 96 97 Available for Sale Bonds 95 96 97 Held-to-Maturity Bonds 95 96 97 1. What is the total amount of gain or loss to be reported as part of other comprehensive income? Give both the amount and whether it is a gain or loss.
Sheridan Company in its first year of operations provides the following information related to one of its available-for-sale debt securities at December 31, 2025. Amortized cost Fair value Expected credit loss (a) $50,800 41,600 12.450 Your answer is correct. What is the amount of the credit loss that Sheridan should report on this available-for-sale security at December 31, 2025? (Do not leave any answer field blank. Enter O for amounts.) Amount of the credit loss. $ 9200
Marigold Company in its first year of operations provides the following information related to one of its available-for-sale debt securities at December 31, 2020. Amortized cost $51,100 Fair value 42,200 Expected credit losses 12,600 A. What is the amount of credit loss that marigold should report on this available-for-sale security at december 31, 2020? Amount of the credit loss $ 8,900 B. Prepare the journal entry to record the credit loss, if any ( and other adjustments needed), at December 31, 2020? date account titles and explanations debit credit 12/31/20 8,900 8,900 Please note that the answer is NOT Debit Loss on available for sale debt securities and Credit avilable for sale debt securities. These are the account titles I can choose from... Accumulated Other…
Information related to Jones Company's portfolio of trading debt securities at December 31, 2021 follows: Jones reported a $10,000 credit balance in its FV Adjustment - Trading Securities account in its December 31, 2020 balance sheet. Assume that it sold no trading securities during 2021. Required: How much should Jones report as unrealized gain or loss on its 2021 income statement? Prepare the journal entry that Jones would make to record the 2021 fair value adjustment to its trading portfolio. kequirement 1: Requirement 2: