FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Requirement 2. Prepare a partial balance sheet for Thyme's Vince investment as of December 31, 2018. Use the partial balance sheet below to show how to report the investment on Thyme's balance sheet at December 31, 2018. (Use a minus sign or parentheses to enter a loss. If a box is not used in the balance sheet, leave the box empty; do not sect a label or enter a zero.)
### Educational Transcription: Thyme Investments Balance Sheet (Partial)

**Thyme Investments**

**Balance Sheet (Partial)**  
**December 31, 2018**

- **Current Assets:**  
  (Dropdown menu available for selection)

- **Long-term Assets:**  
  (Input field for details)

- **Stockholders' Equity:**  
  (Input field for details)

- **Accumulated Other Comprehensive Income:**  
  (Input field for details)

This partial balance sheet represents a snapshot of Thyme Investments' financial position as of December 31, 2018. It includes sections for current assets, long-term assets, stockholders' equity, and accumulated other comprehensive income. These segments are vital for assessing the company's financial health and guiding investment decisions.
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Transcribed Image Text:### Educational Transcription: Thyme Investments Balance Sheet (Partial) **Thyme Investments** **Balance Sheet (Partial)** **December 31, 2018** - **Current Assets:** (Dropdown menu available for selection) - **Long-term Assets:** (Input field for details) - **Stockholders' Equity:** (Input field for details) - **Accumulated Other Comprehensive Income:** (Input field for details) This partial balance sheet represents a snapshot of Thyme Investments' financial position as of December 31, 2018. It includes sections for current assets, long-term assets, stockholders' equity, and accumulated other comprehensive income. These segments are vital for assessing the company's financial health and guiding investment decisions.
### 2018 Investment Details

**Transaction Overview:**

- **Purchase of Bonds:**
  - Purchased Vince Company's bond with a face value of $525,000.
  - Classified as an available-for-sale investment.
  - The bond has an annual interest rate of 6%, payable on June 30 and December 31.
  - Maturity Date: December 31, 2021.
  - Management intends to retain the bonds for several years.

**Timeline of Events:**

- **January 5:** 
  - The initial purchase of the bond.

- **June 30:**
  - Received an interest payment from Vince Company.

- **December 31:**
  - Received a second interest payment from Vince Company.
  - Adjusted the investment to its current market value of $518,500, indicating a change in the bond's market value.

This data shows the bond's financial activities and how its valuation and returns are managed throughout the year.
expand button
Transcribed Image Text:### 2018 Investment Details **Transaction Overview:** - **Purchase of Bonds:** - Purchased Vince Company's bond with a face value of $525,000. - Classified as an available-for-sale investment. - The bond has an annual interest rate of 6%, payable on June 30 and December 31. - Maturity Date: December 31, 2021. - Management intends to retain the bonds for several years. **Timeline of Events:** - **January 5:** - The initial purchase of the bond. - **June 30:** - Received an interest payment from Vince Company. - **December 31:** - Received a second interest payment from Vince Company. - Adjusted the investment to its current market value of $518,500, indicating a change in the bond's market value. This data shows the bond's financial activities and how its valuation and returns are managed throughout the year.
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