Following is a list of investments owned by Tamarisk Ltd., as of the company’s year-end, December...
Following is a list of investments owned by Tamarisk Ltd., as of
the company’s year-end, December 31, 2020:
| Investment | No. Shares | Cost | Fair Value | |||
| HFX Corporation | 900 | $9.00 | $8.00 | |||
| FDY Ltd. | 2,400 | 6.80 | 6.85 | |||
| CTN Corporation | 3,400 | 6.10 | 6.80 |
On January 15, 2021, Tamarisk sold the shares in CTN Corporation
for $7.25 per share. Prepare the journal entries required to record
the sale, assuming the company uses the fair value through other
comprehensive income without recycling method. (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.)
|
Date |
Account Titles and Explanation |
Debit |
Credit |
|
Jan. 15, 2021 |
|||
|
(To adjust to current fair value) |
|||
|
(To record the sale of shares) |
|||
|
(Reclassification unrealized gain) |
Homework Answers
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Following is a list of investments owned by Tamarisk Ltd., as of
the company’s year-end, December...
Following is a list of investments owned by Culver Ltd., as of the company’s year-end, December...
Following is a list of investments owned by Culver Ltd., as of
the company’s year-end, December 31, 2020:
Investment
No. Shares
Cost
Fair Value
HFX Corporation
900
$8.00
$7.00
FDY Ltd.
2,800
6.00
6.05
CTN Corporation
4,000
6.30
7.10
On January 15, 2021, Culver sold the shares in CTN Corporation
for $7.60 per share. Prepare the journal entries required to record
the sale, assuming the company uses the fair value through other
comprehensive income without recycling method. (Credit
account titles...
Current Attempt in Progress Following is a list of investments owned by Shamrock Ltd., as of...
Current Attempt in Progress Following is a list of investments owned by Shamrock Ltd., as of the company’s year-end, December 31, 2020: Investment No. Shares Cost Fair Value HFX Corporation 1,900 $7.84 $7.12 FDY Ltd. 3,200 7.21 7.37 CTN Corporation 4,400 6.18 6.93 On January 15, 2021, Shamrock sold the shares in CTN Corporation for $7.37 per share. Prepare the journal entries required to record the sale, assuming the company uses the fair value through other comprehensive income without recycling...
Accounts Available: Accumulated Other Comprehensive Income Allowance for Investment Impairment Bond Investment at Amortized Cost Cash...
Accounts Available:
Accumulated Other Comprehensive Income
Allowance for Investment Impairment
Bond Investment at Amortized Cost
Cash
Dividend Receivable
Dividend Revenue
FV-NI Investments
FV-OCI Investments
Gain on Sale of Investments
GST Receivable
Interest Expense
Interest Income
Interest Payable
Interest Receivable
Investment in Associate
Investment Income or Loss
Loss on Discontinued Operations
Loss on Impairment
Loss on Sale of Investments
No Entry
Note Investment at Amortized Cost
Other Investments
Recovery of Loss from Impairment
Retained Earnings
Unrealized Gain or Loss - OCI...
Tamarisk Ltd. is a Canadian publicly-traded business with a December 31 fiscal year end. In order...
Tamarisk Ltd. is a Canadian publicly-traded business with a
December 31 fiscal year end. In order to get a better return on
some of its excess cash, Tamariskpurchased 150 common shares of AFS
Corporation on July 1, 2020 at a price of $7 per share. Due to the
nature of the investment Tamarisk’s management is accounting for
the equity investment using the fair-value through other
comprehensive income (FV-OCI) without recycling to net income. On
August 1, 2020, AFS declared dividends...
Tamarisk Corporation made the following cash purchases of securities during 2020, which is the first year...
Tamarisk Corporation made the following cash purchases of securities during 2020, which is the first year in which Tamarisk invested in securities. 1. On January 15, purchased 8,000 shares of Sanchez Company's common stock at $33.50 per share plus commission $1,584. 2. On April 1, purchased 4,000 shares of Vicario Cois common stock at $52 per share plus commission $2,696. 3. On September 10, purchased 5,600 shares of WTA Cois preferred stock at $26.50 per share plus commission $3,928. On...
Exercise 9-14 On July 1, 2020, Flounder Aggregates Ltd. purchased 6% bonds having a maturity value...
Exercise 9-14
On July 1, 2020, Flounder Aggregates Ltd. purchased 6% bonds
having a maturity value of $85,000 for $88,048. The bonds provide
the bondholders with a 5% yield. The bonds mature four years later,
on July 1, 2024, with interest receivable June 30 and December 31
of each year. Flounder uses the effective interest method to
allocate unamortized discount or premium. The bonds are accounted
for using the FV-OCI model with recycling. Flounder has a calendar
year end. The...
Tamarisk Ltd. traded a used truck (cost $31,700, accumulated depreciation $28,530, fair value $2,320) for a...
Tamarisk Ltd. traded a used truck (cost $31,700, accumulated depreciation $28,530, fair value $2,320) for a new truck. Tamarisk did look up the value of its used truck and determined its fair value at the date of the trade is $2,320. The list price of the new truck is $38,080 and the trade-in allowance given on the trade was $5,490. If Tamarisk paid $32,590, what should be the amount used as the cost of the new truck? The cost of...
Additional Problem 9 Whispering Ltd. is a Canadian publicly-traded business with a December 31 fiscal year...
Additional Problem 9 Whispering Ltd. is a Canadian publicly-traded business with a December 31 fiscal year end. In order to get a better return on some of its excess cash, Whispering purchased 240 common shares of AFS Corporation on July 1, 2017 at a price of $5 per share. On the day of acquisition, Whispering elected to account for the investment using the fair-value through other comprehensive income (FV-OCI) with recycling model. On August 1, 2017, AFS declared dividends of...
PRINTER VERSION BACK NEXT At December 31, 2020, the equity investments of Grouper Inc. that were...
PRINTER VERSION BACK NEXT At December 31, 2020, the equity investments of Grouper Inc. that were accounted for using the FV-OCI model without recycling were as follows: Investment Ahn Inc. Burnham Corp. Chi Ltd. Total Cost and Carrying Amount $174,200 120,700 73,300 $368,200 Unrealized Fair Value Gain (Loss) $150,300 $(23,900) 139,900 19,200 76,000 2,700 $366,200 $(2.000) Because of a change in relationship with Ahn Inc., Grouper Inc. sold its investment in Ahn for $154,800 on January 20, 2021. No other...
Brief Exercise 15-13 Tamarisk Corporation has outstanding 446,000 shares of $10 par value common stock. The...
Brief Exercise 15-13
Tamarisk Corporation has outstanding 446,000 shares of $10 par
value common stock. The corporation declares a 5% stock dividend
when the fair value of the stock is $66 per share.
Prepare the journal entries for Tamarisk Corporation for both the
date of declaration and the date of distribution.
(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...
Following is a list of investments owned by Culver Ltd., as of
the company’s year-end, December 31, 2020:
Investment
No. Shares
Cost
Fair Value
HFX Corporation
900
$8.00
$7.00
FDY Ltd.
2,800
6.00
6.05
CTN Corporation
4,000
6.30
7.10
On January 15, 2021, Culver sold the shares in CTN Corporation
for $7.60 per share. Prepare the journal entries required to record
the sale, assuming the company uses the fair value through other
comprehensive income without recycling method. (Credit
account titles...
Accounts Available:
Accumulated Other Comprehensive Income
Allowance for Investment Impairment
Bond Investment at Amortized Cost
Cash
Dividend Receivable
Dividend Revenue
FV-NI Investments
FV-OCI Investments
Gain on Sale of Investments
GST Receivable
Interest Expense
Interest Income
Interest Payable
Interest Receivable
Investment in Associate
Investment Income or Loss
Loss on Discontinued Operations
Loss on Impairment
Loss on Sale of Investments
No Entry
Note Investment at Amortized Cost
Other Investments
Recovery of Loss from Impairment
Retained Earnings
Unrealized Gain or Loss - OCI...
Tamarisk Ltd. is a Canadian publicly-traded business with a
December 31 fiscal year end. In order to get a better return on
some of its excess cash, Tamariskpurchased 150 common shares of AFS
Corporation on July 1, 2020 at a price of $7 per share. Due to the
nature of the investment Tamarisk’s management is accounting for
the equity investment using the fair-value through other
comprehensive income (FV-OCI) without recycling to net income. On
August 1, 2020, AFS declared dividends...
Tamarisk Corporation made the following cash purchases of securities during 2020, which is the first year in which Tamarisk invested in securities. 1. On January 15, purchased 8,000 shares of Sanchez Company's common stock at $33.50 per share plus commission $1,584. 2. On April 1, purchased 4,000 shares of Vicario Cois common stock at $52 per share plus commission $2,696. 3. On September 10, purchased 5,600 shares of WTA Cois preferred stock at $26.50 per share plus commission $3,928. On...
Exercise 9-14
On July 1, 2020, Flounder Aggregates Ltd. purchased 6% bonds
having a maturity value of $85,000 for $88,048. The bonds provide
the bondholders with a 5% yield. The bonds mature four years later,
on July 1, 2024, with interest receivable June 30 and December 31
of each year. Flounder uses the effective interest method to
allocate unamortized discount or premium. The bonds are accounted
for using the FV-OCI model with recycling. Flounder has a calendar
year end. The...
Additional Problem 9 Whispering Ltd. is a Canadian publicly-traded business with a December 31 fiscal year end. In order to get a better return on some of its excess cash, Whispering purchased 240 common shares of AFS Corporation on July 1, 2017 at a price of $5 per share. On the day of acquisition, Whispering elected to account for the investment using the fair-value through other comprehensive income (FV-OCI) with recycling model. On August 1, 2017, AFS declared dividends of...
PRINTER VERSION BACK NEXT At December 31, 2020, the equity investments of Grouper Inc. that were accounted for using the FV-OCI model without recycling were as follows: Investment Ahn Inc. Burnham Corp. Chi Ltd. Total Cost and Carrying Amount $174,200 120,700 73,300 $368,200 Unrealized Fair Value Gain (Loss) $150,300 $(23,900) 139,900 19,200 76,000 2,700 $366,200 $(2.000) Because of a change in relationship with Ahn Inc., Grouper Inc. sold its investment in Ahn for $154,800 on January 20, 2021. No other...
Brief Exercise 15-13
Tamarisk Corporation has outstanding 446,000 shares of $10 par
value common stock. The corporation declares a 5% stock dividend
when the fair value of the stock is $66 per share.
Prepare the journal entries for Tamarisk Corporation for both the
date of declaration and the date of distribution.
(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...
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