Loose Leaf for Financial Accounting: Information for Decisions
9th Edition
ISBN: 9781260158762
Author: John J Wild
Publisher: McGraw-Hill Education
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Chapter C, Problem 17QS
Summary Introduction
Concept Introduction:
Trading securities: these investments are made in securities for the short term, which is held by the investor to sell in the short term to gain a profit on the sale.
To indicate: thereporting of unrealized gain (losses) on trading investment in the income statement.
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Students have asked these similar questions
The Carrefour Group reported the following description of its available-for-sale investments. Assets available for sale are . . . valued at fair value. Unrealized . . . gains or losses are recorded as shareholders’ equity until they are sold. In a recent year, Carrefour’s financial statements reported €18 million in net unrealized losses (net of unrealized gains), which are included in the fair value of its available-for-sale securities reported on the balance sheet. 1. What amount of the €18 million net unrealized losses, if any, is reported in the income statement? Explain. 2. If the €18 million net unrealized losses are not reported in the income statement, in which statement are they reported, if any? Explain.
Cullumber Corporation reported the following information for 2021:
Sales revenue
Cost of goods sold
Operating expenses
Unrealized holding gain on available-for-sale securities
Cash dividends received on the securities
$1034000
For 2021, Cullumber would report comprehensive income of
$241956.
$237820.
$200596.
O $41360.
723800
113740
41360
4136
An entity buys and sells securities expecting to earn profits on short-term differences in price. During 2016, the
entity purchased the following trading securities:
Security
A
Cost
195,000
300,000
660,000
Fair Value Dec. 31, 2016
225,000
162,000
678,000
Before any adjustments related to these trading securities, the entity had net income of P900,000.
What is the entity's net income after making any necessary trading security adjustments?
900,000
810,000
a.
b.
762,000
d. 948,000
C.
What would the net income be if the fair value of security B were P285,000?
a. 867,000
900,000
885,000
933,000
b
C.
d.
Chapter C Solutions
Loose Leaf for Financial Accounting: Information for Decisions
Ch. C - Under what two conditions should investments be...Ch. C - Prob. 2DQCh. C - Prob. 3DQCh. C - Identify the three classes of debt investments and...Ch. C - Prob. 5DQCh. C - Prob. 6DQCh. C - Prob. 7DQCh. C - Prob. 8DQCh. C - Prob. 9DQCh. C - Prob. 10DQ
Ch. C - Prob. 11DQCh. C - Prob. 12DQCh. C - Prob. 13DQCh. C - Prob. 14DQCh. C - Which of the following statements a through g are...Ch. C - Prob. 2QSCh. C - Prob. 3QSCh. C - Prob. 4QSCh. C - Prob. 5QSCh. C - Prob. 6QSCh. C - Journ Co. purchased short-term investments in...Ch. C - Prob. 8QSCh. C - Prob. 9QSCh. C - Prob. 10QSCh. C - Prob. 11QSCh. C - Prob. 12QSCh. C - Complete the following descriptions by filling in...Ch. C - Complete the following descriptions by filling in...Ch. C - Prob. 15QSCh. C - Prob. 17QSCh. C - Complete the following descriptions by filling in...Ch. C - Prob. 2ECh. C - Prob. 4ECh. C - Prob. 5ECh. C - Prob. 6ECh. C - Prob. 7ECh. C - Use the following information of Prescrip Co. to...Ch. C - Prob. 9ECh. C - Prob. 10ECh. C - Prob. 12ECh. C - Complete the following descriptions by filling in...Ch. C - Prob. 14ECh. C - Prob. 1PSACh. C - Prob. 3PSACh. C - Prob. 4PSACh. C - Prob. 5PSACh. C - Prob. 6PSACh. C - Prob. 1PSBCh. C - Prob. 3PSBCh. C - Prob. 4PSBCh. C - Prob. 5PSBCh. C - Prob. 6PSBCh. C - Prob. CSPCh. C - Prob. 1GLPCh. C - Prob. 2GLPCh. C - Prob. 1FSACh. C - Prob. 2FSACh. C - Prob. 3FSACh. C - Prob. 2BTN
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