Required information [The following information applies to the questions displayed below.) 11211 Brooks Company purchases debt investments as trading securities at a cost of $63,000 on December 27. This is its first and only purchase of such securities. At December 31, these securities had a fair value of $75,000. Brooks sells a portion of its trading securities (costing $31,500) for $34,500 cash. Analyze each transaction above by showing its effects on the accounting equation-specifically, identify the accounts and amounts (including+ or -) for each transaction. Assets . Liabilities + *
Q: A company's Inventory records indicate the following data for the month of Apri Units Aequired at…
A: FIFO, or First-In, First-Out, is a method of organizing and processing items or data in which the…
Q: On December 31, 2023, Oriole Corporation, a public company, had the following shareholders' equity…
A: Stockholder's Equity includes the amount contributed by shareholders in the form of common stock,…
Q: Abbott Equipment leased a protein analyzer to Werner Chemical, Incorporated, on September 30, 2024.…
A: An agreement of contract that is prepared to transfer the right to use the resources for a…
Q: XYZ Corp. sells recreational equipment. One of the company's products, a small camp stove, sells for…
A: The breakeven point is the sales level at which a company's revenue exactly covers its total costs,…
Q: In 2023, Amanda and Jaxon Stuart have a daught
A: The earned income tax credit (EITC) — sometimes shortened to "earned income credit" — is a tax break…
Q: When setting up an employee in payroll, where can you enter the information that the employee will…
A: The pay schedule window typically deals with the timing and frequency of payments, such as weekly,…
Q: Homework #3 Hellier Contractors paints interiors of residences and commercial structures. The firm's…
A: Lets understand the basics.Direct material price variance is a variance between the rate at which…
Q: Technoid Incorporated sells computer systems. Technoid leases computers to Lone Star Company on…
A: It is the amount earned on lending amount. Interest revenue is determined by multiplying the…
Q: Metlock Company leases a building and land. The lease term is 8 years and the annual fixed payments…
A: An agreement of contract that is prepared to transfer the right to use the resources for a…
Q: Sheridan Co. has a product with a unit selling price of $680, variable cost per unit $390, and fixed…
A: Break-even point = It is the level of sales wherein the company has no profit and no loss. Below the…
Q: At December 31, 2025, Whispering Inc. had a deferred tax asset of $31,600. At December 31, 2026, the…
A: When there is taxable temporary difference arise between accounting profit and tax profit then…
Q: Prepare the journal entry to record income tax expense, deferred taxes, and income taxes payable for…
A: Deferred Tax Asset: A Deferred Tax Asset is an asset on a company's balance sheet that may be used…
Q: Room Chill Company manufactures ceiling fans and uses an activity-based costing system. Each ceiling…
A: Lets understand the basics.Predetermine overhead rate gets calculated in order to allocate overhead…
Q: UTARIAMALAR Y Required information xequirea: 1. Record amortization expense for the intangible…
A: Intangible assets are those type of assets which can not be seen or felt. These can only be used.…
Q: Required: Assuming no bonus depreciation or Section 179 deduction, calculate the allowable tax…
A: Introduction:-In March 2022, Jones Company purchased a Mercedes for use in its business at a cost of…
Q: Swifty Ltd. had the following 2023 income statement data: Revenues $113,000 Expenses 1/1/23 In 2023,…
A: Lets understand the basics.Cash flow from operating activities is a part of cash flow statement.…
Q: On December 31, 2022, Akron, Incorporated, purchased 5 percent of Zip Company's common shares on the…
A: The equity technique is used to account for company investments. This tactic is employed when the…
Q: In 2024, the Westgate Construction Company entered into a contract to construct a road for Santa…
A: In case of contract revenue is recognised on the basis of percentage of completion and this can be…
Q: Megan operates a house
A: A sole proprietorship is an unincorporated company with just one owner, who is responsible for…
Q: The following information is from the mark Direct materials inventory, 1/1 Direct materials…
A: The CFS (statement of cash flows) records all the sources and use of the cash in the business during…
Q: Required: For each transaction, determine the amount of revenue or expense, if any, that is recorded…
A: Revenue recognition is defined as the accounting principle that describes the process and time to…
Q: a. What amount of ordinary income and separately stated items are allocated to them for year 1 based…
A: The income which is subject to taxable at ordinary rates is known as the ordinary income. The…
Q: Hudson Motors reported $535,000 net income for the current year. Beginning common shares outstanding…
A: Basic earning per share is calculated by dividing the net income less preferred dividend by the…
Q: XYZ Corp. sells recreational equipment. One of the company's products, a small camp stove, sells for…
A: As per the Honor code of Bartleby we are bound to give the answer of the first three sub parts only,…
Q: A company with an excellent prospect of profitable growth, usually pays out. Multiple Choice high…
A: Lets understand the basics.Dividend is a return paid on the investment made by the shareholders. It…
Q: Given the following data, what is the ending balance in the common stock account? Total assets,…
A: The accounting equation, Assets = Liabilities + Equity, represents the fundamental principle of…
Q: he double-declining-balance and straight-line depreciation methods: O are the only acceptable…
A: Double-Declining-Balance Depreciation: Accelerates depreciation with higher expenses early in an…
Q: Espresso Express operates a number of espresso coffee stands in busy suburban malls. The fixed…
A: Lets understand the basics.Costs are mainly divided into two types which are,(1) Variable costs(2)…
Q: Wildhorse Company follows the practice of pricing its inventory at the lower-of-cost-or-market, on…
A: Ending inventory is the entire worth of items or products on hand at the end of a certain accounting…
Q: Required information [The following information applies to the questions displayed below.] Jorgansen…
A: Absorption costing is a method of gathering and assigning the costs of a manufacturing process to a…
Q: Buckley, an individual, began business two years ago and has never sold a $1231 asset. Buckley has…
A: Depreciation refers to the cost expensed over the life of the asset due to the asset's daily use.…
Q: Perreth Drycleaners has capacity to clean up to 5,000 garments per month. Requirements 1. Complete…
A: Variable cost means the cost which vary with the level of output where as fixed cost remain fixed…
Q: $6,000. Wh a minus sign. Or $ 30000 -6000 $ 24000 00 and a dividend 30000 22000 for a value of…
A: Retained profits are often created by a company's operational operations and are returned back into…
Q: Thoro Clean, a firm providing house-cleaning services, began business on April 1. The following…
A: Journal entries are recorded as per accounting rules. A journal entry may be recorded by debiting or…
Q: SANDHILL COMPANY
A: Income statement means the statement which show the net income after deducting all expenses from…
Q: Blue Company signed a long-term noncancelable purchase commitment with a major supplier to purchase…
A: Answer:- A journal entry is used to record a business transaction in the company's accounting…
Q: Required: 1. Prepare Rocky's July 15 journal entry to record revenue for tours given from July…
A: In accordance with IFRS 15, The estimation of variable consideration should be based on:The most…
Q: Cerium Inc. produces a variety of household cleaning products. Cerium's controller has developed…
A: FLEXIBLE BUDGETA flexible budget is a budget that is prepared for different levels of activity or…
Q: [The following Information applies to the questions displayed below.] Annin Laboratories uses the…
A: The equivalent units are calculated on the basis of the percentage of the work completed during the…
Q: Calculating the Predetermined Overhead Rate, Applying Overhead to Production At the beginning of the…
A: PREDETERMINED OVERHEAD RATEPredetermined rate means the indirect cost rate.Predetermined overhead…
Q: Bulluck Corporation makes a product with the following standard costs: Standard Quantity or Hours…
A: Variable Overhead Variance is the difference between standard variable overhead cost for actual…
Q: The following is cost and production data for the Wave Darter: Variable manufacturing cost Applied…
A: Markup percentage under absorption costs is calculated by dividing markup amount by total absorption…
Q: Current portion of long-term debt PepsiCo, Inc. (PEP) reported the following information about its…
A: Long-term debt is the liabilities that are expected to be paid beyond twelve months and the…
Q: In the year 2018, a corporation made $18.5Million in revenue, $2.1 Million of operating expenses,…
A: Answer:-The amount of income tax that must be paid in relation to the taxable income is generally…
Q: According to the activity-based costing system, the product margin for product W26B is: (Round your…
A: ACTIVITY BASED COSTINGActivity Based Costing is a powerful tool for measuring…
Q: (b) Assume that the conditions are met for a transfer of receivables with recourse to be accounted…
A: RECOURSE FACTORING IS THE MOST COMMON AND MEANS THAT FACTOR CAN DEMAND MONEY BACK FROM THE COMPANY…
Q: Q 4 ) Financial data for Sharma Ltd has been provided as follows for the year ended 31st October:…
A: The cash flow statement is prepared at the end of the period to know the cash position. It reflects…
Q: The following information relates to a company's accounts receivable: gross accounts receivable…
A: Bad debt expense :— It is the amount of sales that are no longer collectible from customers during…
Q: Problem: Module 6 Textbook Problem 6 Learning Objective: 6-3 Make appropriate outsourcing decisions…
A: Relevant cost in management The term relevant cost really matters. The relevant cost is the cost…
Q: Cost accounting systems used by manufacturing companies are based on the: OA. LIFO inventory system.…
A: A cost accounting system is the system companies use to compute the cost related to the goods sold…
Trending now
This is a popular solution!
Step by step
Solved in 4 steps
- Brooks Company purchases debt investments as trading securities at a cost of $71,000 on December 27. This is its first and only purchase of such securities. At December 31, these securities had a fair value of $90,000. Brooks sells a portion of its trading securities (costing $35,500) for $40,250 cash. Analyze each transaction above by showing its effects on the accounting equation-specifically, identify the accounts and amounts (including + or -) for each transaction.Brooks Company purchases debt investments as trading securities at a cost of $56,000 on December 27. This is its first and only purchase of such securities. At December 31, these securities had a fair value of $63,000. Exercise 15-3 (Algo) Financial statement impact of trading securities LO P1 Brooks sells a portion of its trading securities (costing $28,000) for $29,750 cash. Analyze each transaction above by showing its effects on the accounting equation-specifically, identify the accounts and amounts (including + or −) for each transaction. 1. 1. 2. 3. 3. Debt Investments - Trading Cash Assets (+) increase (-) decrease (+) increase 56,000 56,000 = = = = = X Answer is not complete. Liabilities + + + + + Retained earnings Equity X (+) increase × 1,750 XUse the following information on a company's investments in debt securities to answer the following question. The company's accounting year ends December 31. Investment Date of Acquisition 9/20/23 $38,000 Colt Compan y bonds Cost Fair Value Date Sold Selling 12/31/23 Price $37,000 2/10/24 $42,000 Dana Compan y bonds 10/2/23 14,000 14,200 1/17/24 13,000 If the above investments are categorized as available-for-sale securities, what is the net effect on 2024 other comprehensive income? Select one: a. $ 800 increase b. $0 c. $3,800 increase d. $ 800 decrease
- G.252. Required information Skip to question [The following information applies to the questions displayed below.] Brooks Company purchases debt investments as trading securities at a cost of $77,000 on December 27. This is its first and only purchase of such securities. At December 31, these securities had a fair value of $87,000. Brooks sells a portion of its trading securities (costing $38,500) for $41,000 cash. Analyze each transaction above by showing its effects on the accounting equation—specifically, identify the accounts and amounts (including + or −) for each transaction.Accounting Brooks Company purchases debt investments as trading securities at a cost of $66,000 on December 27. This is its first and only purchase of such securities. At December 31, these securities had a fair value of $72,000. Brooks sells a portion of its trading securities (costing $3,000) for $4,000 cash. Analyze each transaction above by showing its effects on the accounting equation-specifically, identify the accounts and amounts (including + or -) for each transaction. Fill in the blanks 1. 1. Assets Debt (+) Investments increase - Trading Cash 2. Gain on sale of debt investments 3. Debt Investments - Trading 3. Cash (-) decrease (+) increase (-) decrease (+) increase Liabilities + Equity 66,000 = 66,000 = 6,000 3,000 4,000 = = = + + + + + (+) increase F 6,000Required information Use the following information for the Exercises below. (Algo) [The following information applies to the questions displayed below.] Brooks Company purchases debt investments as trading securities at a cost of $74,000 on December 27. This is its first and only purchase of such securities. At December 31, these securities had a fair value of $81,000. Exercise 15-2 (Algo) Accounting for debt investments classified as trading LO P1 1. Prepare the December 27 entry for the purchase of debt investments. 2. & 3. Prepare the December 31 year-end fair value adjusting entry for the trading securities' portfolio and the January 3 entry when Brooks sells a portion of its trading securities (costing $37,000) for $38,750 cash. Complete this question by entering your answers in the tabs below. Req 1 Prepare the December 27 entry for the purchase of debt investments. View transaction list Req 2 and 3 Journal entry worksheet
- 2. Edwards Company began business in February of 2021. During the year, Edwards purchased the three trading securities listed below. On its December 31, 2021, balance sheet, Edwards appropriately reported a P4,000 credit balance in its Market Adjustment-Trading securities account. There was no change during 2022 in the composition of Edward's portfolio of trading securities. Pertinent data are as follows: Security A B с Cost P120,000 90,000 160,000 P370,000 Fair Value 12/31/22 P126,000 80,000 157,000 P363,000 What amount of loss on these securities should be included in Edward's income statement for the year ended December 31, 2022? d. P0| a. P11,000 b. P7,000 c. P3,000Cardinal Paz Corp. carries an account in its general ledger called Investments, which contained debits for investment purchases, and no credits, with the following descriptions. Feb. 1, 2025 April 1 July 1 (a) Sharapova Company common stock, $100 par, 200 shares U.S. government bonds, 11%, due April 1, 2035, interest payable April 1 and October 1, 110 bonds of $1,000 par each McGrath Company 12% bonds, par $50,000, dated March 1, 2025, purchased at 104 plus accrued interest, interest payable annually on March 1, due March 1, 2045 Account Titles and Explanation Debt Investments Prepare entries necessary to classify the amounts into proper accounts, assuming that the debt securities are classified as available-for-sale. Sharapova has 200,000 shares outstanding. (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…1. Computational. On January 1, 20x1, ABC purchased bonds with face amount of P5,000,000. The entity paid P4,700,000 plus transaction cost of P42,130 for the bond investment. The business model of the entity in managing the financial asset is to collect contractual cash flows that are solely payment of principal and interest and also to sell the bonds the open market. The bonds mature on December 31, 20x3 and pays 6% interest annually on December 31 each year with 8% effective interest rate (after incorporating the transaction cost on initial recognition). The bonds are quoted at 106 and 108 on December 31, 20x1 and December 31, 20x2. The bonds are sold at 103 on July 1, 20x3, excluding accrued interest. Use 4-decimal present value factor. For the year ended December 31, 20x3, how much is the total impact to profit or loss as a result of the business model of ABC in holding this investment? (sample answer: 2,350,450.55)
- Rogers Corporation carries an account in its general ledger called Investments, which contained the following debits for investment purchases and no credits. Feb. 1, 2020 Jordy Company common stock, $100 par, 200 shares $ 37,400 April 1 U.S. government bonds, 5%, due April 1, 2030, interest payable April 1 and October 1, 100 bonds at $1,000 each 100,000 July 1 Driver Company 6% bonds, par $50,000, dated March 1, 2016, purchased at par plus accrued interest, interest payable annually on March 1, due March 1, 2040 51,000 Instructions a. Prepare entries necessary to classify the amounts into proper accounts, assuming that all the bonds are classified as available-for-sale. b. Prepare the entry to record the accrued interest on December 31, 2020. c. The fair values of the securities on December 31, 2020, were: Jordy Company common stock $ 33,800 (1% of total shares) U.S. government bonds 124,700 Driver Company bonds 58,600 What entry or entries, if any,…Cardinal Paz Corp. carries an account in its general ledger called Investments, which contained debits for investment purchases, and no credits, with the following descriptions. Feb. 1, 2020 Sharapova Company common stock, $100 par, 200 shares $ 37,400 April 1 U.S. government bonds, 11%, due April 1, 2030, interest payableApril 1 and October 1, 110 bonds of $1,000 par each 110,000 July 1 McGrath Company 12% bonds, par $50,000, dated March 1, 2020,purchased at 104 plus accrued interest, interest payableannually on March 1, due March 1, 2040 54,000 Instructions (Round all computations to the nearest dollar.) a. Prepare entries necessary to classify the amounts into proper accounts, assuming that the debt securities are classified as available-for-sale. b. Prepare the entry to record the accrued interest and the amortization of premium on December 31, 2020, using the straight-line method. c. The fair values of the investments on December 31, 2020, were: Sharapova…Floyd Limited had the following transactions pertaining to debt investments. Jan. 1, 2020 Purchased 50 $1,000 Petal Co. 8% bonds for $50,000 cash. Interest is payable annually on January 1. Dec. 31, 2020 Accrued interest on the Petal Co. bonds. Jan. 1, 2021 Received interest on Petal Co. bonds. Jan. 1, 2021 Sold 30 Petal Co. bonds for $33,500. Instructions: a. Journalize the transactions. b. Prepare the adjusting entry for the accrual of interest at December 31, 2021.