Principles of Financial Accounting.
24th Edition
ISBN: 9781260158601
Author: Wild
Publisher: MCG
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Chapter 15, Problem 4QS
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. Prepare the
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Ticker Services began operations in Year 1 and holds long-term investments in available-for-sale debt securities. The year-end cost and
fair values for its portfolio of these investments follow.
Portfolio of Available-for-Sale Securities
December 31, Year 1
December 31, Year 2
December 31, Year 3
December 31, Year 4
View transaction list View journal entry worksheet
Prepare journal entries to record each year-end fair value adjustment for these securities.
No
3
Cost
$11,000
18,900
20,600
14,800
Date
Dec. 31, Year 3 No Transaction Recorded
Fair Value
$17,500
28,000
30, 200
19,700
General Journal
Debit
Credit
Ⓒ
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
(1) After the fair value adjustment is made, prepare the assets section of Kitty Company's December 31 classified balance sheet.
(2) In which income statement section is the unrealized gain (or loss) on the portfolio of trading securities reported?
Required 1
Cost
$ 12,900
21, 200
5,300
Complete this question by entering your answers in the tabs below.
Required 2
Fair Value
$ 9,675
22,260
4,240
KITTY COMPANY
Assets Section of Balance Sheet
December 31
Assets
After the fair value adjustment is made, prepare the assets section of Kitty Company's December 31 classified balance sheet.
Note: Amounts to be deducted should be indicated with a minus sign.
Ticker Services began operations in Year 1 and holds long-term investments in available-for-sale debt securities. The year-end cost and fair values for its portfolio of these investments follow. Prepare journal entries to record each year-end fair value adjustment for these securities.
Chapter 15 Solutions
Principles of Financial Accounting.
Ch. 15 - Prob. 1MCQCh. 15 - Prob. 2MCQCh. 15 - Prob. 3MCQCh. 15 - Prob. 4MCQCh. 15 - Prob. 5MCQCh. 15 - Prob. 1DQCh. 15 - Prob. 2DQCh. 15 - Prob. 3DQCh. 15 - Prob. 4DQCh. 15 - Under what conditions should investments be...
Ch. 15 - Prob. 6DQCh. 15 - Prob. 7DQCh. 15 - Prob. 8DQCh. 15 - Prob. 9DQCh. 15 - Prob. 10DQCh. 15 - Prob. 11DQCh. 15 - Prob. 12DQCh. 15 - Refer to Googles statement of comprehensive income...Ch. 15 - Prob. 14DQCh. 15 - Which of the following statements are true of...Ch. 15 - Prob. 2QSCh. 15 - Prob. 3QSCh. 15 - Kitty Company began operations in the current year...Ch. 15 - Refer to the information in QS 15-4. (1) After the...Ch. 15 - Prob. 6QSCh. 15 - Prob. 7QSCh. 15 - Prob. 8QSCh. 15 - Prob. 9QSCh. 15 - Prob. 10QSCh. 15 - Prob. 11QSCh. 15 - Prepare Tiker Companys journal entries to record...Ch. 15 - Prob. 13QSCh. 15 - Prob. 14QSCh. 15 - Prob. 15QSCh. 15 - Prob. 16QSCh. 15 - Prob. 17QSCh. 15 - Prob. 18QSCh. 15 - Debt and equity securities and short- and...Ch. 15 - Prob. 2ECh. 15 - Prepare Natura Co.s journal entries to record the...Ch. 15 - Prob. 4ECh. 15 - On December 31, Lujack Co. held the following...Ch. 15 - Prob. 6ECh. 15 - Prob. 7ECh. 15 - Prob. 8ECh. 15 - Prob. 9ECh. 15 - Prob. 10ECh. 15 - Prob. 11ECh. 15 - Prob. 12ECh. 15 - Prob. 13ECh. 15 - Selected accounts from GermX Co.s adjusted trial...Ch. 15 - Prob. 15ECh. 15 - Use the following information of Prescrip Co. to...Ch. 15 - Prob. 17ECh. 15 - Prob. 1APCh. 15 - Mead Inc. began operations in Year 1. Following is...Ch. 15 - Stoll Co.s long-term available-for-sale portfolio...Ch. 15 - Rose Company had no short-term investments prior...Ch. 15 - Prob. 5APCh. 15 - Prob. 6APCh. 15 - Prob. 1BPCh. 15 - Paris Inc. began operations in Year 1. Following...Ch. 15 - Troys long-term available-for-sale portfolio at...Ch. 15 - Prob. 4BPCh. 15 - Prob. 5BPCh. 15 - Prob. 6BPCh. 15 - Prob. 15SPCh. 15 - Prob. 1AACh. 15 - Prob. 2AACh. 15 - Prob. 3AACh. 15 - Prob. 1BTNCh. 15 - Prob. 2BTNCh. 15 - Prob. 3BTNCh. 15 - Prob. 5BTN
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