Riverbed Company has the following investments as of December 31, 2020: ●   Investment in common stock of Piedmont Company $738,000 ●   Investment in debt securities of Touchdown Company $1,145,000 The carrying value and the fair value of these two investments are the same at December 31, 2020. Riverbed’s stock investment does not result in significant influence on the operations of Piedmont Company. Riverbed’s debt investment is considered held-to-maturity. At December 31, 2021, the shares in Piedmont Company are valued at $487,000; the debt investment securities of Touchdown are valued at $668,000. Assume that these investments are considered impaired.     Prepare the journal entries to record the impairment of these two securities at December 31, 2018. (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 to record the impairment of investment in common stock enter a debit amount enter a credit amount enter an account title to record the impairment of investment in common stock enter a debit amount enter a credit amount (To record impairment of investment in common stock)     enter an account title to record the impairment of investment in debt securities enter a debit amount enter a credit amount enter an account title to record the impairment of investment in debt securities enter a debit amount enter a credit amount (To record impairment of investment in debt securities)           Assuming that at December 31, 2019, the fair value of the Piedmont shares is $614,000 and the value of its debt investment is $1,074,000, what entries, if any, should be recorded in 2019 related to impairment? (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 amount           Assume that the debt investment in Touchdown Company was available-for-sale, its fair value was $769,000, and the expected credit loss was $428,000 at December 31, 2018. Prepare the journal entry to record this impairment on December 31, 2018. (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 amount

The following selected transactions relate to investment activities of Ornamental Insulation Corporation during 2024. me buys debt securities, intending to profit from short-term differences in price and maintaining them in an active trading portfolio. Ornamental's fiscal year ends on December 31. No investments were held by Ornamental on December 31, 2023. March 31 Acquired 8% Distribution Transformers Corporation bonds costing $420,000 at face value. September 1 Acquired $960,000 of American Instruments' 10% bonds at face value. September 30 Received semiannual interest payment on the Distribution Transformers bonds. October 2 Sold the Distribution Transformers bonds for $455,000. November 1 Purchased $1,500,000 of M&D Corporation 6% bonds at face value. December 31 Recorded any necessary adjusting entry(s) relating to the investments. The market prices of the investments are American Instruments bonds M&D Corporation bonds (Hint: Interest must be accrued.) 'J $912,000 $ 1,562,000…

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Novak Company has the following investments as of December 31, 2020: Investments in common stock of Laser Company   $1,350,000 Investment in debt securities of FourSquare Company   $3,280,000 In both investments, the carrying value and the fair value of these two investments are the same at December 31, 2020. Novak’s stock investments does not result in significant influence on the operations of Laser Company. Novak’s debt investment is considered held-to-maturity. At December 31, 2021, the shares in Laser Company are valued at $950,000; the debt investment securities of FourSquare are valued at $2,460,000 and are considered impaired. LIST OF ACCOUNTS Accumulated Other Comprehensive Loss Allowance for Doubtful Accounts Allowance to Reduce Inventory to Market Bad Debt Expense Bonds Payable Cash Call Option Common Stock Cost of Goods Sold Debt Investments Dividend Revenue Dividend Receivable Equity Investments Fair Value Adjustment Futures Contract Gain on Sale of Investments…

Indicate the statement presentation of each class of securities and any related unrealized gain (loss) accounts.

On January 1, 2024, Everglade Company purchased the following debt securities and properly accounted for them as securities available-for-sale: Security Cost Fair Value, 12/31/2024 ABC $ 58,000 $ 74,800 DEF 91,800 83,000 XYZ 34,000 39,800 All declines in value are considered temporary. What amount should the Everglade Company report relative to these securities in its 2024 statement of other comprehensive income? Multiple Choice $0. $22,600 unrealized holding gain. $13,800 net unrealized holding gain. $8,800 unrealized holding loss.

The following information is available for Sheridan Company at December 31, 2020, regarding its investments. Securities   Cost   Fair Value 2,600 shares of Myers Corporation Common Stock   $ 36,900   $ 46,200 1,200 shares of Cole Incorporated Preferred Stock   23,600   21,100     $ 60,500   $ 67,300 (a) Prepare the adjusting entry (if any) for 2020, assuming no balance in the Fair Value Adjustment account at January 1, 2020. Neither of Sheridan’s investments result in significant influence. (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

Presented below is selected information related to the financial instruments of Novak Company at December 31, 2025. This is Novak Company's first year of operations. Carrying Amount Fair Value (at December 31) Investment in debt securities (intent is to hold to maturity) $42,600 $43,500 Investment in Chen Company stock 737,000 856,500 Bonds payable 241,500 217,100 (a) Novak elects to use the fair value option for these investments. Assuming that Novak's net income is $108,000 in 2025 before reporting any securities gains or losses, determine Novak's net income for 2025. Assume that the difference between the carrying value and fair value is due to credit deterioration. Novak's net income for 2025 $ 228,400 (b) Record the journal entry, if any, necessary at December 31, 2025, to record the fair value option for the bonds payable. (List debit entry before credit entry. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is…

On December 31, Reggit Company held the following short-term investments in its portfolio of availablefor- sale debt securities. Reggit had no short-term investments in its prior accounting periods. Prepare the December 31 adjusting entry to report these investments at fair value. Available-for-Sale Securities Cost Fair Value Verrizano Corporation bonds $89,600 $91,600 Preble Corporation notes 70,600 62,900 Lucerne Company bonds 86,500 83,100

Green Corporation began operations in 2021. An analysis of Green’s equity investments portfolio acquired in 2021 shows the following totals at December 31, 2021 for trading and non-trading investments:Trading Investments:Aggregate cost - P90,000Aggregate fair value - P110,000Non-trading Investments:Aggregate cost - P110,000Aggregate fair value - P95,000What amount should Valet report in its 2021 income statement for unrealized holding loss?