On December 31, Mars Company had the following portfolio of stock investments with insignificant inf stock investments in prior periods. Stock Investments Apple stock Chipotle stock Under Armour stock Cost $ 6,400 3,800 12,700 Fair Value $ 9,600 2,900 14,800 e. Mars ha Exercise 15-10 (Algo) Fair value adjustment to stock investments with insignificant influence LO P4 Prepare the December 31 adjusting entry to report these investments at fair value.
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- 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 calculationsRequired information [The following information applies to the questions displayed below] On December 31, Mars Company had the following portfolio of stock investments with insignificant influence. Mars had no stock investments in prior periods. Stock Investments Fair Value Apple stock Cost $ 6,200 $ 8,500 Chipotle stock 3,400 1,200 Under Armour stock 10,800 12,200 Prepare the December 31 adjusting entry to report these investments at fair value.Required information Use the following information for the Exercises below. (Algo) [The following information applies to the questions displayed below.] On December 31, Mars Company had the following portfolio of stock investments with insignificant influence. Mars had no stock investments in prior periods. Stock Investments Apple stock Chipotle stock Under Armour stock View transaction list Exercise 15-10 (Algo) Fair value adjustment to stock investments with insignificant influence LO P4 Prepare the December 31 adjusting entry to report these investments at fair value. Cost $ 5,300 3,400 10,100 Journal entry worksheet < 1 Fair Value $ 9,300 1,500 14,600 Note: Enter debits before credits. Record the year-end adjustment to fair value, if any.
- INVESTMENT PORTFOLIO General Corporation has the following investments in equity securities at December 31, 2002 (there are no existing balances in the market adjustment account): Percentage of Shares Owned Market Price at 12/31/02 Company Classification Shares Cost Clarke Corporation Trading Available-for-sale 1,000 2% S75 S78 Marlin Company 4,000 15 34 32 Air Products, Inc. Available-for-sale 3,000 10 46 43 Required: 1. Prepare any adjusting entries required at December 31, 2002. 2. Illustrate how these investments would be presented on General Corporation's balance sheet at December 31, 2002. The available-for-sale securities are expected to be held for two to five years. 3. Prepare the journal entry on April 10, 2003, when General Corporation sold the Clarke Corporation investment for $72 per share. 4. Assume that General Corporation still owns its investment in Marlin Company and Air Products at December 31, 2003; the market prices on that date are $37 for Marlin and $44 for Air…AUDIT OF MARKETABLE SECURITIES – TRADING The company’s equity portfolio as of year-end showed the following: Total Market Value Shares Cost per Share SCC 7,000 108,500 P16.00 PHA 10,000 195,000 19.75 PAL 2,400 49,200 24.00 EMP 2,000 67,000 26.00 DMC 8,000 31,600 1.20 UB 1,600 50,880 27.50 P502,180 The securities are listed in the stock exchange. The company follows the fair value accounting. Trading securities A. P403,640 B. P502,180 C. P491,240 D. P472,700Paul 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?
- Which of the following is False in regards to Share premium account? a. It will be collected when the issue price is more than the par value of shares b. It will not be shown under current assets in the balance sheet c. It will be shown under the shareholders funds d. It will be collected when the par value of share is more than the issue price Trade receivables of XYZ SAOG company was OMR 16000 on 1st January 2019. A customer has gone bankrupt owing RO 1400, The debt is not expected to be recovered and an adjustment should be made at the end of the year 2019. An allowance for receivables of 5% is to be set up. What will be the Good Trade receivables to be shown under Current Assets on the balance sheet? a. OMR 13870 b. OMR 14600 c. OMR 15270 d. OMR 730At what amount should the following trading investment portfolio be reported on the December 31? balance sheet? All the investments are less than 5 percent of the investee's stock and were purchased late in the current year. Investment Current Stock Cost Market Value ------------------------------------------------------------------------- Eastman Kodak........... $ 5,000 $ 5,500 Exxon................... 61,200 53,000 General Motors.......... 3,680 6,230 The Amounts of the investments on the Balance Sheet is A) $59,222 B) 64,730Fair Value Journal Entries, Trading Investments Gruden Bancorp Inc. purchased a portfolio of trading securities during Year 1. The cost and fair value of this portfolio on December 31, Year 1, was as follows: Name Number of Shares Total Cost Total Fair Value Griffin Inc. 1,400 $18,760 $17,630 Luck Company 750 24,600 22,880 Wilson Company 350 10,500 10,710 Total $53,860 $51,220 On May 10, Year 2, Gruden Bancorp Inc. purchased 500 shares of Carroll Inc., at $30 per share plus a $90 brokerage commission. Provide the journal entries to record the following: a. The adjustment of the trading security portfolio to fair value on December 31, Year 1. Year 1, Dec. 31 fill in the blank fc5d10fdb048f9d_2 fill in the blank fc5d10fdb048f9d_4 b. The May 10, Year 2, purchase of Carroll Inc. stock. Year 2, May 10 fill in the blank 1c85c7f3ff9905c_2
- Problem 15-11 (AICPA Adapted) At the beginning of current year, Manifold Company began operations. The following information related to the portfolio of equity securities held for trading at year-end: Trading Nontrading Aggregate cost Aggregate fair value Aggregate lower of cost or market value applied to each security in the portfolio 360,000 320,000 550,000 450,000 304,000 420,000 The nontrading investments are measured at fair value through other comprehensive income. What amount should be reported as unrealized loss in the income statement for the current year? 140,000 b. a. 186,000 40,000 56,000 с. d.Fair Value Journal Entries, Trading Investments Gruden Bancorp Inc. purchased a portfolio of trading securities during Year 1. The cost and fair value of this portfolio on December 31, Year 1, was as follows: Name Number of Shares Total Cost Total Fair Value Griffin Inc. 1,100 $14,740 $13,860 Luck Company 850 27,880 25,930 Wilson Company 250 7,250 7,400 Total $49,870 $47,190 On May 10, Year 2, Gruden Bancorp Inc. purchased 500 shares of Carroll Inc., at $29 per share plus a $80 brokerage commission. Provide the journal entries to record the following: a. The adjustment of the trading security portfolio to fair value on December 31, Year 1. Year 1, Dec. 31 b. The May 10, Year 2, purchase of Carroll Inc. stock. Year 2, May 10Use 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?