Required information[The following information applies to the questions displayed below.]Kitty Company began operations in the current year and acquired short-term debt investments in trading securities. Theyear-end cost and fair values for its portfolio of these debt investments follow.Trading SecuritiesTesla BondsNike BondsFord BondsView transaction list<Prepare the journal entry to record the December 31 year-end fair value adjustment for these debt securities.Journal entry worksheet1Record the year-end adjustment to fair value, if any.Note: Enter debits before credits.DateDecember 31Record entryGeneral JournalCost$ 13,80022,4005,600Retained earningsFair value adjustment - AFSClear entryFair Value$ 10,35023,5204,480DebitCreditView general journal>

The difference between fair value of securities and cost of securities is called as unrealized…

Required information [The following information applies to the questions displayed below.] Kitty Company began operations in the current year and acquired short-term debt investments in trading securities. The year-end cost and fair values for its portfolio of these debt investments follow. Trading Securities Tesla Bonds Nike Bonds Ford Bonds ew transaction list are the journal entry to record the December 31 year-end fair value adjustment for these debt securities. Journal entry worksheet < 1 Record the year-end adjustment to fair value, if any. Note: Enter debits before credits. Date December 31 Record entry General Journal Cost $ 13,800 22,400 5,600 Retained earnings Fair value adjustment - AFS Clear entry Fair Value $ 10,350 23,520 4,480 Debit Credit View general journal

Required information [The following information applies to the questions displayed below.] Kitty Company began operations in the current year and acquired short-term debt investments in trading securities. The year-end cost and fair values for its portfolio of these debt investments follow. Trading Securities Tesla Bonds Nike Bonds Ford Bonds ew transaction list are the journal entry to record the December 31 year-end fair value adjustment for these debt securities. Journal entry worksheet < 1 Record the year-end adjustment to fair value, if any. Note: Enter debits before credits. Date December 31 Record entry General Journal Cost $ 13,800 22,400 5,600 Retained earnings Fair value adjustment - AFS Clear entry Fair Value $ 10,350 23,520 4,480 Debit Credit View general journal

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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1. Debt Investment Transactions, Available-for-Sale Valuation Rekya Mart Inc. is a general merchandise retail company that began operations on January 1, Year 1. The following transactions relate to debt investments acquired by Rekya Mart Inc., which has a fiscal year ending on December 31: Year 1 Apr. 1. Purchased $66,000 of Smoke Bay 7%, 10-year bonds at their face amount plus accrued interest of $770. The bonds pay interest semiannually on February 1 and August 1. May 16. Purchased $112,000 of Geotherma Co. 6%, 12-year bonds at their face amount plus accrued interest of $280. The bonds pay interest semiannually on May 1 and November 1. Aug. 1. Received semiannual interest on the Smoke Bay bonds. Sept. 1. Sold $26,400 of Smoke Bay bonds at 104 plus accrued interest of $154. Nov. 1. Received semiannual interest on the Geotherma Co. bonds. Dec. 31 Accrued $924 interest on Smoke Bay bonds. Dec. 31 Accrued $560 interest on Geotherma Co. bonds. Year 2 Feb. 1.…
Required information [The following information applies to the questions displayed below.] Stoll Company's long-term available-for-sale portfolio at the start of this year consists of the following. Available-for-Sale Securities Company A bonds Fair Value $ 495,000 Company B notes Cost $530,500 159,080 663,000 Company C bonds 147,000 648,390 Stoll enters into the following transactions involving its available-for-sale debt securities this year. Sold one-half of the Company B notes for $78,170. Purchased Company X bonds for $127,000. January 29 July 6 November 13 Purchased Company Z notes for $267,500. December 9 Sold all of the Company A bonds for $517,400. Fair values at December 31 are B, $80,600; C, $600,800; X, $120,000; and Z, $279,000. Required: 1. Prepare journal entries to record these transactions, including the December 31 adjusting entry to record the fair value adjustment for the long-term investments in available-for-sale securities. 2. Determine the amount Stoll reports…
! Required information [The following information applies to the questions displayed below.] On December 31, Reggit Company held the following short-term investments in its portfolio of available-for-sale debt securities. Reggit had no short-term investments in its prior accounting periods. Available-for-Sale Securities Verrizano Corporation bonds Preble Corporation notes Lucerne Company bonds Prepare the December 31 adjusting entry to report these investments at fair value. General Journal Complete this question by entering your answers in the tabs below. Fair Value Adjustment Computation of fair value adjustment. Cost $ 68,000 49,000 64,000 Verrizano Corporation bonds Preble Corporation notes Lucerne Company bonds Total Fair Value Adjustment Computation - Available for Sale Portfolio Unrealized Amount Cost Fair Value $ 66,640 43,610 61,440 Fair Value $ 68,000 $ 66,640 49,000 43,610 64,000 61,440 $ 181,000 $ 171,690 Unrealized Loss
Prepare Natura Co.’s journal entries to record the following transactions involving its short-term investments in held-to-maturity debt securities, all of which occurred during the current year. a. On June 15, paid $1,000 cash to purchase Remed’s 90-day short-term debt securities ($1,000 principal), dated June 15, that pay 10% interest. b. On September 16, received a check from Remed in payment of the principal and 90 days’ interest on the debt securities purchased in part a.
Requ a. Using the present value tables in Chapter 6, calculate the proceeds (issue price) of Learned, Inc.'s, bonds on January 1, 2013, assuming that the bonds were sold to provide a market rate of return to the investor. b. Assume instead that the proceeds were $93,000,000. Use the horizontal model (or write the journal entry) to record the payment of semiannual interest and the related premium amortization on June 30, 2013, assuming that the premium of $3,000,000 is amortized on a straight-line basis. o 0ompound interest method
Subject :- Accountion
Debt Investment Transactions, Available-for-Sale Valuation Rekya Mart Inc. is a general merchandise retail company that began operations on January 1, Year 1. The following transactions relate to debt investments acquired by Rekya Mart Inc., which has a fiscal year ending on December 31: Year 1 Apr. 1. Purchased $60,000 of Smoke Bay 7%, 10-year bonds at their face amount plus accrued interest of $700. The bonds pay interest semiannually on February 1 and August 1. May 16. Purchased $96,000 of Geotherma Co. 6%, 12-year bonds at their face amount plus accrued interest of $240. The bonds pay interest semiannually on May 1 and November 1. Aug. 1. Received semiannual interest on the Smoke Bay bonds. Sept. 1. Sold $24,000 of Smoke Bay bonds at 104 plus accrued interest of $140. Nov. 1. Received semiannual interest on the Geotherma Co. bonds. Dec. 31 Accrued $840 interest on Smoke Bay bonds. Dec. 31 Accrued $480 interest on Geotherma Co. bonds. Year 2 Feb. 1. Received…
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Year 2 and 3 for Fair Value at the end of the year are still incorrect and I do not understand why?
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Prepare adjusting entry to record fair value, and indicate statement presentation. E16.11 (LO 3), AP Financial Statement Writing At December 31, 2022, available-for-sale debt securities for Storrer, Inc. are as follows. The securities are considered to be a long-term investment. Fair Value $16,000 14,000 21,000 $51,000 Security A B с Cost $17,500 12,500 23,000 $53,000 Instructions a. Prepare the adjusting entry at December 31, 2022, to report the securities at fair value. b. Show the statement presentation at December 31, 2022, after adjustment to fair value. c. E. Kretsinger, a member of the board of directors, does not understand the reporting of the unreal- ized gains or losses. Write a letter to Ms. Kretsinger explaining the reporting and the purposes that it serves.