Principles of Financial Accounting.
24th Edition
ISBN: 9781260158601
Author: Wild
Publisher: MCG
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Chapter 15, Problem 8E
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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.
Arantxa Corporation made the following purchases of investments during 2023, the first year in which Arantxa invested in equity
securities:
1.
2.
3.
On January 15, it purchased 9,000 shares of Nirmala Corp.'s common shares at $33.50 per share plus commission of $1,980.
On April 1, it purchased 5,000 shares of Oxana Corp's common shares at $52 per share plus commission of $3,370.
On September 10, it purchased 7,000 shares of WTA Corp's preferred shares at $26.50 per share plus commission of $2,910.
On May 20, 2023, Arantxa sold 3,000 of the Nirmala common shares at a market price of $35 per share less brokerage commissions of
$2,850. The year-end fair values per share were as follows: Nirmala $30, Oxana $55, and WTA $28. The chief accountant of Arantxa
tells you that Arantxa holds these investments with the intention of selling them to earn short-term profits from appreciation in their
prices and accounts for them using the FV-NI model.
Arantxa follows IFRS.
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.
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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