I need help with this Equity and Available-for-Sale InvestmentsO'Brien Industries Inc. is a book publisher.The available-for-sale investments at cost and fair value on December 31, 20Y4, are as follows:Issuing Company CostBernard Co.$38,25065,520$103,770Chadwick Co.June 30.The investment in Jolly Roger Co. stock represents 30% of the outstanding shares of Jolly Roger CoThe following selected transactions occurred during 20Y5:Jan. 2.Oct. 1.9.Dec. 31.31.Fair Value$37,50063,770$101,270Purchased $94,400 of Gozar Inc. 5%, 10-year bonds at 100. The bonds areclassified as an available-for-sale investment. The bonds pay interest on June 30and December 31.Q SearchReceived interest for 6 months on the Gozar Inc. bonds purchased on January 2.Purchased $40,000 of Nightline Co. 6%, 10-year bonds at 100. The bonds are1 and April 1.classified as an available-for-sale investment. The bonds pay interest on OctoberDividends of $12,500 are received on the Jolly Roger Co. investment.Jolly Roger Co. reported a total net income of $112,000 for 20Y5, which O'BrienIndustries Inc. recorded using the equity method.Received interest for 6 months on the Gozar Inc. bonds purchased on January 2.LL Equity and Available-for-Sale InvestmentsO'Brien Industries Inc. is a book publisher.The available-for-sale investments at cost and fair value on December 31, 20Y4, are as follows:Issuing Company CostBernard Co.$38,25065,520$103,770Chadwick Co.June 30.The investment in Jolly Roger Co. stock represents 30% of the outstanding shares of Jolly Roger CoThe following selected transactions occurred during 20Y5:Jan. 2.Oct. 1.9.Dec. 31.31.Fair Value$37,50063,770$101,270Purchased $94,400 of Gozar Inc. 5%, 10-year bonds at 100. The bonds areclassified as an available-for-sale investment. The bonds pay interest on June 30and December 31.Q SearchReceived interest for 6 months on the Gozar Inc. bonds purchased on January 2.Purchased $40,000 of Nightline Co. 6%, 10-year bonds at 100. The bonds are1 and April 1.classified as an available-for-sale investment. The bonds pay interest on OctoberDividends of $12,500 are received on the Jolly Roger Co. investment.Jolly Roger Co. reported a total net income of $112,000 for 20Y5, which O'BrienIndustries Inc. recorded using the equity method.Received interest for 6 months on the Gozar Inc. bonds purchased on January 2.LL

Concept: Comparative Balance SheetComparative Balance Sheet is a financial statement that represents…

Fair Value $34,650 57,960 98,560 Jightline Co. 39,200 or the year ending December 31, 20Y5, O'Brien Industries Inc. reported net income of $148,230 and paid no dividends. Required: suing Company ernard Co. hadwick Co. Hozar Inc. The comparative unclassified balance sheets for December 31, 20Y4 and 20Y5 are provided below. Selected balances are missing. Determine the missing amounts. Use minus sign to indicate the negative amounts. Do not round interim calculations. Round answers to nearest dollar. O'Brien Industries Inc. Partial Balance Sheets December 31 Available-for-Sale Investments (at Cost) Valuation Allowance for Available-for-Sale Investments Available-for-Sale Investments (Fair Value) Interest Receivable Investment in Jolly Roger Co. stock Office Equipment (Net) Total Assets Search 20Y5 115,000 20Y4 $103,770 (2,500) $101,270 $77,000 130,000 $666,270 <

Fair Value $34,650 57,960 98,560 Jightline Co. 39,200 or the year ending December 31, 20Y5, O'Brien Industries Inc. reported net income of $148,230 and paid no dividends. Required: suing Company ernard Co. hadwick Co. Hozar Inc. The comparative unclassified balance sheets for December 31, 20Y4 and 20Y5 are provided below. Selected balances are missing. Determine the missing amounts. Use minus sign to indicate the negative amounts. Do not round interim calculations. Round answers to nearest dollar. O'Brien Industries Inc. Partial Balance Sheets December 31 Available-for-Sale Investments (at Cost) Valuation Allowance for Available-for-Sale Investments Available-for-Sale Investments (Fair Value) Interest Receivable Investment in Jolly Roger Co. stock Office Equipment (Net) Total Assets Search 20Y5 115,000 20Y4 $103,770 (2,500) $101,270 $77,000 130,000 $666,270 <

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 3PA: Forte Inc. produces and sells theater set designs and costumes. The company began operations on...

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Use the following information on a company’s investments in equity securities to answer questions 1- 2 below. The company’s accounting year ends December 31. Investment Date of acquisition Cost Fair value 12/31/16 Date sold Selling price Ajax Company stock 6/20/16 $40,000 $35,000 2/10/17 $32,000 Bril Corporation stock 5/1/16 20,000 N/A 11/15/16 26,000 Coy Company stock 8/2/16 16,000 16,500 1/17/17 23,000 1. If the above investments are categorized as trading securities, what amount is reported for gain or loss on securities, on the 2016 income statement? 2. If the above investments are categorized as trading securities, what amount is reported for gain or loss on securities, on the 2017 income statement?
Fair value journal entries, trading investmentsThe investments of Charger Inc. include a single investment: 14,500shares of Raiders Inc. common stock purchased on February 24, Year 1,for $38 per share including brokerage commission. These shares werelassified as trading securities. As of the December 31, Year 1, balancesheet date, the share price had increased to $42 per share. a. Journalize the entries to acquire the investment on February 24 andrecord the adjustment to fair value on December 31, Year 1.b. How is the unrealized gain or loss for trading investments reported onthe financial statements?
Balance Sheet Presentation of Available-for-Sale Investments During Year 1, its first year of operations, Galileo Company purchased two available-for-sale investments as follows: Security Shares Purchased Cost Hawking Inc. 760 $34,124 Pavlov Co. 2,060 48,204 Assume that as of December 31, Year 1, the Hawking Inc. stock had a market value of $53 per share and the Pavlov Co. stock had a market value of $42 per share. Galileo Company had net income of $264,300 and paid no dividends for the year ending December 31, Year 1. All of the available-for-sale investments are classified as current assets. a. Prepare the Current Assets section of the balance sheet presentation for the available-for-sale investments. Galileo Company Balance Sheet (selected items) December 31, Year 1 Assets Current Assets: $ $ b. Prepare the Stockholders' Equity section of the balance sheet to reflect the earnings and unrealized gain (loss) for…
Fair Value Journal Entries, Available-for-Sale Investments The investments of Steelers Inc. include a single investment: 8,900 shares of Bengals Inc. common stock purchased on September 12, Year 1, for $8 per share including brokerage commission. These shares were classified as available-for-sale securities. As of the December 31, Year 1, balance sheet date, the share price declined to $6 per share. a. Journalize the entries to acquire the investment on September 12 and record the adjustment to fair value on December 31, Year 1. Year 1 Sept. 12 Year 1 Dec. 31 b. How is the unrealized gain or loss for available-for-sale investments disclosed on the financial statements? Unrealized Gain (Loss) on Available-for-Sale Investments is reported in the of the
Investment Reporting O'Brien Industries Inc. is a book publisher. Note 1. Investments are classified as available for sale. The investments at cost and fair value on December 31, Year 1, are as follows: Cost per Share Bernard Co. stock Chadwick Co. stock Year 2 May 5. Oct. 1. Oct. 9. Dec. 31. Dec. 31. Dec. 31. Note 2. The investment in Jolly Roger Co. stock is an equity method investment representing 30% of the outstanding shares of Jolly Roger Co. The following selected investment transactions occurred during Year 2: Available-for-Sale Investments Bernard Co. stock No. of Shares Chadwick Co. stock Dec. 31. Gozar Inc. stock 1,600 Nightline Co. bonds Required: 900 Purchased 1,900 shares of Gozar Inc. at $26 per share including brokerage commission. Gozar Inc. is classified as an available-for- sale security. Purchased $33,000 of Nightline Co. 5%, 10-year bonds at 100. The bonds are classified as available for sale. The bonds pay interest on October 1 and April 1. Dividends of $9,000 are…
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Journalize the entries to record the following selected equity investment transactions completed by Perry Company during the current year. Perry accounts for this investment using the cost method. Feb. 2 Purchased for cash 900 shares of Dexter Co. stock for $54 per share plus a $450 brokerage commission. This represents a less than 10% ownership interest in the company. Apr. 16 Received dividends of $0.25 per share on Dexter Co. stock. June 17 Sold 200 shares of Dexter Co. stock for $70 per share less a $500 brokerage commission. Aug. 19 Purchased 600 shares of Dexter Co. stock for $65 per share plus a $300 brokerage commission. Nov. 14 Received dividends of $0.30 per share on Dexter Co. stock.
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Balance Sheet Presentation of Available-for-Sale Investments During Year 1, its first year of operations, Galileo Company purchased two available-for-sale investments as follows: Security Shares Purchased Cost Hawking Inc. 860 $43,602 Pavlov Co. 2,330 61,512 Assume that as of December 31, Year 1, the Hawking Inc. stock had a market value of $60 per share and the Pavlov Co. stock had a market value of $48 per share. Galileo Company had net income of $337,400 and paid no dividends for the year ending December 31, Year 1. All of the available-for-sale investments are classified as current assets. available for sale investments at cost/available for sale investments at fair value/common stock/retained earning/unrealized gain (loss) on available for sale investments/less retained earning/less unrealized gain (loss) on available for sale /plus retained earnings/plus unrealized gain (loss) on available/plus valuation allowance for available for sale/less unrealized gain…
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r. Pinkberry Co. reported total earnings of $240,000. Equinox Products recorded its share of Pinkberry Co. net income using the equity method. Description Debit Credit s. The Solstice Corp. bonds have a fair value of $253,630 on December 31, 2OY5. Valuation Allowance for Available-for-Sale Investments had a balance of zero on January 1, 20Y5. Description Debit Credit Feedback