On December 21, 2020, Vaughn Company provided you with the following information regarding its equity investments. December 31, 2020 Fair Unrealized Gain Investments (Trading) Cost Value (Loss) Clemson Corp. stock Colorado Co. stock $19,500 $18,500 $(1,000 ) (1,100 ) 9,100 ৪,000 Buffaloes Co. stock 19,500 20,140 640 Total of portfolio $48,100 $46,640 (1,460 ) Previous fair value adjustment balance Fair value adjustment-Cr. $(1,460 ) During 2021, Colorado Co. stock was sold for $8,480. The fair value of the stock on December 31, 2021, was Clemson Corp. stock-$18,600; Buffaloes Co. stock-$20,040. None of the equity investments result in significant influence. (c) Prepare the adjusting journal entry needed on December 31, 2021.

On December 21, 2020, Vaughn Company provided you with the following information regarding its equity investments. December 31, 2020 Fair Unrealized Gain Investments (Trading) Cost Value (Loss) Clemson Corp. stock Colorado Co. stock $19,500 $18,500 $(1,000 ) (1,100 ) 9,100 ৪,000 Buffaloes Co. stock 19,500 20,140 640 Total of portfolio $48,100 $46,640 (1,460 ) Previous fair value adjustment balance Fair value adjustment-Cr. $(1,460 ) During 2021, Colorado Co. stock was sold for $8,480. The fair value of the stock on December 31, 2021, was Clemson Corp. stock-$18,600; Buffaloes Co. stock-$20,040. None of the equity investments result in significant influence. (c) Prepare the adjusting journal entry needed on December 31, 2021.

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter13: Investments And Long-term Receivables

Section: Chapter Questions

Problem 14P: Investments in Equity Securities Noonan Corporation prepares quarterly financial statements and...

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Paul Company presented the following information pertaining to its investments in equity securities. FVPL FVOCICost P1,000,000 P1,000,000Market value December 31, 2020 1,050,000 980,000 December 31, 2019 950,000 920,000 2.What amount should Paul report as unrealized gains/losses in the shareholders' equity of its December 31, 2020 statement of financial position?
Question 6: Myrnam Co. has the following investments held for trading on December 31, 2021: Carrying Value 185,000 125,000 230,000 540,000 Fair Value Category FVTPL Security Co. M common shares Co. N preferred shares Co. P common shares 160,000 140,000 190,000 490,000 FVTPL FVTOCI Total Instructions: a. Prepare the adjusting entries required at December 31 to report the above investments at fair value. b. Show the financial statement presentation of the investments and holding gains and losses that result from fair value adjustments at December 31, 2021. (Ignore income tax.) c. Assuming that on April 25, 2022, Myrnam sold Co. M common shares for $160,000, Co. N preferred shares for $135,000, and Co P common shares for $200,000, prepare the journal entries required to record these transactions. Round amounts to the nearest dollar. Show ALL calculations
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Investments in Equity Securities Noonan Corporation prepares quarterly financial statements and invests its excess funds in marketable securities. At the end of 2018, Noonans portfolio of investments consisted of the following equity securities: Dunne the first half of 2019, Noonan engaged in the following investment transactions: Required: 1. Record Noonans investment transactions for January 6 through June 30, 2019. 2. Show the items of income or loss from investment transactions that Noonan reports for each of the first and second quarters of 2019. 3. Show how the preceding items are reported on the first and second quarter 2019 ending balance sheets, assuming that management expects to dispose of the Keene and Sachs securities within the next year.
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QUESTION 45 The Investment portfolio of XYZ Ltd. as on 31.03.2020 consisted of the following: (Rs. in lacs) Current Investments Cost Fair Value as on 31.03.2020 (1) 1000 Equity Shares of A Ltd. 7 (2) 500 Equity Shares of B Ltd. 10 15 (3) 1000 Equity Shares of C Ltd. 15 12 Total 30 34 Give your comments on the following: (i) The company wants to value the above portfolio at Rs. 30 lakhs being lower of cost or fair market value. (ii) Company wants to transfer 1000 Equity Shares of C Ltd. from current investments to long term investments on 31.03.2020 at cost of Rs. 15 lakhs.