At December 31, 2020, the available-for-sale debt portfolio for Novak Corp. is as follows. Securities Good Co. Bonds Home Co. Bonds Grand Inc. Debentures Cost (a) $28,800 31,700 36,700 97,200 Fair Value $26,600 Account Titles and Explanation 33,700 37,800 98,100 Unrealized Gain (Loss) $(2,200 ) 2,000 1,100 Before an adjusting entry on December 31, 2020, the fair value adjustment account contained a credit balance of $470. Novak Corp. reported net income of $80,100 for 2020. 900 Prepare the adjusting entry at December 31, 2020, to report the portfolio at fair value. (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 amounts.) Debit Credit

At December 31, 2020, the available-for-sale debt portfolio for Novak Corp. is as follows. Securities Good Co. Bonds Home Co. Bonds Grand Inc. Debentures Cost (a) $28,800 31,700 36,700 97,200 Fair Value $26,600 Account Titles and Explanation 33,700 37,800 98,100 Unrealized Gain (Loss) $(2,200 ) 2,000 1,100 Before an adjusting entry on December 31, 2020, the fair value adjustment account contained a credit balance of $470. Novak Corp. reported net income of $80,100 for 2020. 900 Prepare the adjusting entry at December 31, 2020, to report the portfolio at fair value. (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 amounts.) Debit Credit

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 2MC: During 2021, Anthony Company purchased debt securities as a long-term investment and classified them...

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The comparative balance sheets for Metlock Corporation show the following information. December 312020 2019Cash $33,500 $12,900Accounts receivable 12,400 10,000Inventory 12,100 9,000Available-for-sale debt investments –0– 3,000Buildings –0– 29,800Equipment 44,800 19,900Patents 5,000 6,300 $107,800 $90,900Allowance for doubtful accounts $3,100 $4,500Accumulated depreciation—equipment 2,000 4,500Accumulated depreciation—building –0– 6,000Accounts payable 5,000 3,000Dividends payable –0– 4,900Notes payable, short-term (nontrade) 3,000 4,100Long-term notes payable 31,000 25,000Common stock 43,000 33,000Retained earnings 20,700 5,900 $107,800 $90,900 Additional data related to 2020 are as follows. 1. Equipment that had cost $11,000 and was 40% depreciated at time of disposal was sold for $2,500.2. $10,000 of the long-term note payable was paid by issuing common stock.3. Cash dividends paid were $4,900.4. On January…
At December 31, 2020, the available-for-sale debt portfolio for Crane, Inc. is as follows. Security A B C Total Previous fair value adjustment balance-Dr. Fair value adjustment- Dr. Cost $17,500 12,200 500 Fair Value $1,300 $15,000 23,400 25,700 $53,100 $54,900 14,200 Unrealized Gain (Loss) $(2,500 2,000 2,300 1,800 ) On January 20, 2021, Crane, Inc. sold security A for $15,100. The sale proceeds are net of brokerage fees. Crane, Inc. reports net income in 2020 of $118,000 and in 2021 of $143,000. Total holding gains (including any realized holding gain or loss) equal $49,000 in 2021. Prepare a statement of comprehensive income for 2020, starting with net income. Prepare a statement of comprehensive income for 2021, starting with net income. Please show underlying calculations (especially for reclassification adjustment for 2021). I correctly identified the statement of income for 2020, but am stuck on the one for 2021. Thank you!
At December 31, 2020, the available-for-sale debt portfolio for Whispering, Inc. is as follows. Security Cost Fair Value UnrealizedGain (Loss) A $ 27,125 $ 23,250 $( 3,875 ) B 19,375 21,700 2,325 C 35,650 39,525 3,875 Total $ 82,150 $ 84,475 2,325 Previous fair value adjustment balance—Dr. 620 Fair value adjustment—Dr. $ 1,705 On January 20, 2021, Whispering, Inc. sold security A for $ 23,405. The sale proceeds are net of brokerage fees. (a) Prepare the adjusting entry at December 31, 2020, to report the portfolio at fair value. (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 0 for the amounts.) Account Titles and Explanation Debit Credit
Metlock Corporation has the following trading portfolio of debt investments as of December 31, 2020. Security Cost A $16,340 B 18,920 C (a) 29,240 $64,500 (b) Fair Value $12,900 On January 22, 2021, Metlock Corporation sold security C for $27,520. List of Accounts 23,220 Prepare the adjusting entry for Metlock Corporation on December 31, 2020, to report the portfolio at fair value. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. List debit entry before credit entry.) Save for Later 24,940 $61,060 eTextbook and Media Date Account Titles and Explanation Dec. 31 METLOCK CORPORATION Balance Sheet (Partial) METLOCK CORPORATION Income Statement (Partial) Debit Indicate the balance sheet and income statement presentation of the fair value data for Metlock Corporation at December 31, 2020. $ Credit Attempts: unlimited Submit Answer
At December 31, 2020, the available-for-sale debt portfolio for Whispering, Inc. is as follows. Security Cost Fair Value UnrealizedGain (Loss) A $ 27,125 $ 23,250 $( 3,875 ) B 19,375 21,700 2,325 C 35,650 39,525 3,875 Total $ 82,150 $ 84,475 2,325 Previous fair value adjustment balance—Dr. 620 Fair value adjustment—Dr. $ 1,705 On January 20, 2021, Whispering, Inc. sold security A for $ 23,405. The sale proceeds are net of brokerage fees.
At December 31, 2020, the available-for-sale debt portfolio for Windsor, Inc. is as follows. Security Cost Fair Value UnrealizedGain (Loss) A $27,125 $23,250 $(3,875 ) B 19,375 21,700 2,325 C 35,650 39,525 3,875 Total $82,150 $84,475 2,325 Previous fair value adjustment balance—Dr. 620 Fair value adjustment—Dr. $1,705 On January 20, 2021, Windsor, Inc. sold security A for $23,405. The sale proceeds are net of brokerage fees. 1). Show the balance sheet presentation of the investment-related accounts at December 31, 2020. 2). Prepare the journal entry for the 2021 sale of security A.
At December 31, 2020, the available-for-sale debt portfolio for Windsor, Inc. is as follows. Security Cost Fair Value UnrealizedGain (Loss) A $27,125 $23,250 $(3,875 ) B 19,375 21,700 2,325 C 35,650 39,525 3,875 Total $82,150 $84,475 2,325 Previous fair value adjustment balance—Dr. 620 Fair value adjustment—Dr. $1,705 On January 20, 2021, Windsor, Inc. sold security A for $23,405. The sale proceeds are net of brokerage fees. 1). Prepare the adjusting entry at December 31, 2020, to report the portfolio at fair value. 2). Show the balance sheet presentation of the investment-related accounts at December 31, 2020
At December 31, 2020, the available-for-sale debt portfolio for Sheridan, Inc. is as follows. Security Cost Fair Value UnrealizedGain (Loss) A $ 17,800 $ 15,500 $( 2,300 ) B 11,300 14,700 3,400 C 23,700 26,500 2,800 Total $ 52,800 $ 56,700 3,900 Previous fair value adjustment balance—Dr. 300 Fair value adjustment—Dr. $ 3,600 On January 20, 2021, Sheridan, Inc. sold security A for $ 15,600. The sale proceeds are net of brokerage fees.Sheridan, Inc. reports net income in 2020 of $ 117,000 and in 2021 of $ 148,000. Total holding gains (including any realized holding gain or loss) equal $ 47,000 in 2021. Prepare a statement of comprehensive income for 2020, starting with net income. SHERIDAN, INCStatement of Comprehensive Income $ $
At December 31, 2020, the available-for-sale debt portfolio for Ivanhoe, Inc. is as follows. Security Cost Fair Value UnrealizedGain (Loss) A $17,100 $14,200 $(2,900) B 11,800 15,300 3,500 C 22,000 25,600 3,600 Total $50,900 $55,100 4,200 Previous fair value adjustment balance—Dr. 300 Fair value adjustment—Dr. $3,900 On January 20, 2021, Ivanhoe, Inc. sold security A for $14,300. The sale proceeds are net of brokerage fees.Ivanhoe, Inc. reports net income in 2020 of $117,000 and in 2021 of $141,000. Total holding gains (including any realized holding gain or loss) equal $42,000 in 2021. 1. Prepare a statement of comprehensive income for 2020, starting with net income. 2. Prepare a statement of comprehensive income for 2021, starting with net income.
At December 31, 2020, the available-for-sale debt portfolio for Kingbird, Inc. is as follows. Security Cost Fair Value UnrealizedGain (Loss) A $32,375 $27,750 $(4,625 ) B 23,125 25,900 2,775 C 42,550 47,175 4,625 Total $98,050 $100,825 2,775 Previous fair value adjustment balance—Dr. 740 Fair value adjustment—Dr. $2,035 On January 20, 2021, Kingbird, Inc. sold security A for $27,935. The sale proceeds are net of brokerage fees. Prepare the adjusting entry at December 31, 2020, to report the portfolio at fair value. (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 0 for the amounts.) Account Titles and Explanation Debit Credit
At December 31, 2020, the available-for-sale debt portfolio for Cheyenne Corp. is as follows. Securities Cost Fair Value Unrealized Gain(Loss) Good Co. Bonds $28,800 $26,600 $(2,200 ) Home Co. Bonds 31,700 33,700 2,000 Grand Inc. Debentures 36,700 37,800 1,100 97,200 98,100 900 Before an adjusting entry on December 31, 2020, the fair value adjustment account contained a credit balance of $470. CheyenneCorp. reported net income of $80,100 for 2020. Prepare the adjusting entry at December 31, 2020, to report the portfolio at fair value. (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 0 for the amounts.) Account Titles and Explanation Debit Credit enter an account title enter a debit amount enter a credit amount enter an account title enter a debit amount enter a credit…
At December 31, 2020, the available-for-sale debt portfolio for Kingbird, Inc. is as follows. Security Cost Fair Value UnrealizedGain (Loss) A $32,375 $27,750 $(4,625 ) B 23,125 25,900 2,775 C 42,550 47,175 4,625 Total $98,050 $100,825 2,775 Previous fair value adjustment balance—Dr. 740 Fair value adjustment—Dr. $2,035 On January 20, 2021, Kingbird, Inc. sold security A for $27,935. The sale proceeds are net of brokerage fees. Prepare the journal entry for the 2021 sale of security A. (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 0 for the amounts.) Date Account Titles and Explanation Debit Credit Jan. 20, 2021