At December 31, 2020, the available-for-sale debt securities for Storrer, Inc. are as follows. The securities are considered to be a long-term investment.
|
Security |
Cost |
Fair Value |
||
| A | $17,500 | $16,000 | ||
| B | 12,500 | 14,000 | ||
| C | 23,000 | 21,000 | ||
| $53,000 | $51,000 |
Prepare the adjusting entry at December 31, 2020, to report the securities at fair value. (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 |
|
Dec. 31 |
|||
eTextbook and Media
List of Accounts
Show the statement presentation at December 31, 2020, after adjustment to fair value.
|
Storrer, Inc. |
|||
|
Current AssetsCurrent LiabilitiesIntangible AssetsInvestmentsDebt Investments at fair valueLong-term LiabilitiesProperty, Plant and EquipmentStockholders' EquityTotal AssetsTotal Current AssetsTotal Current LiabilitiesTotal Intangible AssetsTotal LiabilitiesTotal Liabilities and Stockholders' EquityTotal Long-term InvestmentsTotal Long-term LiabilitiesTotal Property, Plant and EquipmentTotal Stockholders' EquityUnrealized Loss On Available-for-Sale SecuritiesAccumulated Other Comprehensive LossOther Comprehensive income |
|||
|
Current AssetsCurrent LiabilitiesIntangible AssetsInvestmentsDebt Investments at fair valueLong-term LiabilitiesProperty, Plant and EquipmentStockholders' EquityTotal AssetsTotal Current AssetsTotal Current LiabilitiesTotal Intangible AssetsTotal LiabilitiesTotal Liabilities and Stockholders' EquityTotal Long-term InvestmentsTotal Long-term LiabilitiesTotal Property, Plant and EquipmentTotal Stockholders' EquityUnrealized Loss On Available-for-Sale SecuritiesAccumulated Other Comprehensive LossOther Comprehensive income |
$ |
||
|
Current AssetsCurrent LiabilitiesIntangible AssetsInvestmentsDebt Investments at fair valueLong-term LiabilitiesProperty, Plant and EquipmentStockholders' EquityTotal AssetsTotal Current AssetsTotal Current LiabilitiesTotal Intangible AssetsTotal LiabilitiesTotal Liabilities and Stockholders' EquityTotal Long-term InvestmentsTotal Long-term LiabilitiesTotal Property, Plant and EquipmentTotal Stockholders' EquityUnrealized Loss On Available-for-Sale SecuritiesAccumulated Other Comprehensive LossOther Comprehensive income |
|||
|
AddLess: Current AssetsCurrent LiabilitiesIntangible AssetsInvestmentsDebt Investments at fair valueLong-term LiabilitiesProperty, Plant and EquipmentStockholders' EquityTotal AssetsTotal Current AssetsTotal Current LiabilitiesTotal Intangible AssetsTotal LiabilitiesTotal Liabilities and Stockholders' EquityTotal Long-term InvestmentsTotal Long-term LiabilitiesTotal Property, Plant and EquipmentTotal Stockholders' EquityUnrealized Loss On Available-for-Sale SecuritiesAccumulated Other Comprehensive LossOther Comprehensive income |
$ |
||
|
Storrer, Inc. |
|||
|
Current AssetsCurrent LiabilitiesIntangible AssetsInvestmentsDebt Investments at fair valueLong-term LiabilitiesProperty, Plant and EquipmentStockholders' EquityTotal AssetsTotal Current AssetsTotal Current LiabilitiesTotal Intangible AssetsTotal LiabilitiesTotal Liabilities and Stockholders' EquityTotal Long-term InvestmentsTotal Long-term LiabilitiesTotal Property, Plant and EquipmentTotal Stockholders' EquityUnrealized Loss On Available-for-Sale SecuritiesAccumulated Other Comprehensive LossOther Comprehensive Income |
|||
|
Current AssetsCurrent LiabilitiesIntangible AssetsInvestmentsDebt Investments at fair valueLong-term LiabilitiesProperty, Plant and EquipmentStockholders' EquityTotal AssetsTotal Current AssetsTotal Current LiabilitiesTotal Intangible AssetsTotal LiabilitiesTotal Liabilities and Stockholders' EquityTotal Long-term InvestmentsTotal Long-term LiabilitiesTotal Property, Plant and EquipmentTotal Stockholders' EquityUnrealized Loss On Available-for-Sale SecuritiesAccumulated Other Comprehensive LossOther Comprehensive income |
$ |
||
Homework Answers
| Accounts Title | Dr | Cr | |
| 31-Dec | Unrealized Gain or loss -Equity (53000-51000) | $2,000 | |
| Fair value Adjustment-Available for sale | 2000 | ||
| (being adjusting entry made to adjust the investment to fair value) | |||
| Balance Sheet (Partial) | |||
| For the Year Ended December 31, 2020 | |||
| Long term Investments | |||
| Debt Investments at fair value | $53,000 | ||
| Comprehensive Income statement | |||
| For the Year Ended December 31, 2020 | |||
| Other Comrehensive Income | |||
| Unrealized Gain or loss -Equity | -2000 | ||
| If any doubt please comment | |||
Add Answer to:
At December 31, 2020, the available-for-sale debt securities for
Storrer, Inc. are as follows. The securities...
Whispering Company has two classes of capital stock outstanding: 8%, $20 par preferred and $5 par...
Whispering Company has two classes of capital stock outstanding: 8%, $20 par preferred and $5 par common. At December 31, 2020, the following accounts were included in stockholders’ equity. Preferred Stock, 148,200 shares $ 2,964,000 Common Stock, 1,991,000 shares 9,955,000 Paid-in Capital in Excess of Par—Preferred Stock 207,000 Paid-in Capital in Excess of Par—Common Stock 26,478,000 Retained Earnings 4,495,000 The following transactions affected stockholders’ equity during 2021. Jan. 1 29,200 shares of preferred stock issued at $23 per share. Feb....
Exercise 15-17 Metlock Corporation’s post-closing trial balance at December 31, 2020, is shown as follows. METLOCK...
Exercise 15-17
Metlock Corporation’s post-closing trial balance at December 31,
2020, is shown as follows.
METLOCK CORPORATION
POST-CLOSING TRIAL BALANCE
DECEMBER 31, 2020
Dr.
Cr.
Accounts payable
$ 307,700
Accounts receivable
$ 492,000
Accumulated depreciation—buildings
189,000
Additional paid-in capital in excess
of par—common
1,386,000
From treasury stock
161,000
Allowance for doubtful accounts
29,000
Bonds payable
319,000
Buildings
1,496,000
Cash
188,000
Common stock ($1 par)
202,000
Dividends payable (preferred stock—cash)
4,300
Inventory
609,000
Land
380,000
Preferred stock ($50 par)
450,000
Prepaid...
Cullumber Corp. invested its excess cash in securities during 2020. As of December 31, 2020, the...
Cullumber Corp. invested its excess cash in securities during 2020. As of December 31, 2020, the securities portfolio consisted of the following common stocks. Security Quantity Cost Fair Value Lindsay Jones, Inc. 1,000 shares $15,100 $21,100 Poley Corp. 2,000 shares 39,700 41,700 Arnold Aircraft 2,000 shares 71,300 59,500 Totals $126,100 $122,300 What should be reported on Cullumber’s December 31, 2020, balance sheet relative to these securities? What should be reported on Cullumber’s 2020 income statement? (If no entry is required,...
On December 31, 2020, Sage Company has $6,975,000 of short-term debt in the form of notes...
On December 31, 2020, Sage Company has $6,975,000 of short-term debt in the form of notes payable to Gotham State Bank due in 2021. On December 28, 2020, Sage enters into a refinancing agreement with Gotham that will permit it to borrow up to 67% of the gross amount of its accounts receivable. Receivables are expected to range between a low of $5,983,000 in May to a high of $7,983,000 in October during the year 2021. The interest cost of...
The stockholders’ equity accounts of Pronghorn Corp. on January 1, 2017, were as follows. Preferred Stock...
The stockholders’ equity accounts of Pronghorn Corp. on January 1, 2017, were as follows. Preferred Stock (6%, $100 par noncumulative, 4,250 shares authorized) $255,000 Common Stock ($3 stated value, 350,000 shares authorized) 875,000 Paid-in Capital in Excess of Par Value—Preferred Stock 12,750 Paid-in Capital in Excess of Stated Value—Common Stock 560,000 Retained Earnings 686,000 Treasury Stock (4,250 common shares) 34,000 During 2017, the corporation had the following transactions and events pertaining to its stockholders’ equity. Feb. 1 Issued 5,440 shares...
On January 1, 2022, Tamarisk, Inc. had these stockholders’ equity balances. Common Stock, $1 par (2,900,000...
On January 1, 2022, Tamarisk, Inc. had these stockholders’ equity balances. Common Stock, $1 par (2,900,000 shares authorized, 655,000 shares issued and outstanding) $655,000 Paid-in Capital in Excess of Par Value 1,590,000 Retained Earnings 683,000 Accumulated Other Comprehensive Income 60,000 During 2022, the following transactions and events occurred. 1. Issued 55,000 shares of $1 par value common stock for $2 per share. 2. Issued 59,500 shares of common stock for cash at $6 per share. 3. Purchased 21,100 shares of...
On January 1, 2022, Tamarisk, Inc. had these stockholders’ equity balances. Common Stock, $1 par (2,900,000...
On January 1, 2022, Tamarisk, Inc. had these stockholders’ equity balances. Common Stock, $1 par (2,900,000 shares authorized, 655,000 shares issued and outstanding) $655,000 Paid-in Capital in Excess of Par Value 1,590,000 Retained Earnings 683,000 Accumulated Other Comprehensive Income 60,000 During 2022, the following transactions and events occurred. 1. Issued 55,000 shares of $1 par value common stock for $2 per share. 2. Issued 59,500 shares of common stock for cash at $6 per share. 3. Purchased 21,100 shares of...
On January 1, 2020, Crane Corporation had the following stockholders’ equity accounts. Common Stock (no par...
On January 1, 2020, Crane Corporation had the following
stockholders’ equity accounts.
Common Stock (no par value, 91,000 shares issued and
outstanding)
$1,385,000
Retained Earnings
546,000
During the year, the following transactions occurred.
Feb. 1
Declared a $1 cash dividend per share to stockholders of record
on February 15, payable March 1.
Mar. 1
Paid the dividend declared in February.
Apr. 1
Announced a 3-for-1 stock split. Prior to the split, the market
price per share was $37.
July 1...
Problem 15-4A Talkington Electronics issues a $350,000, 3%, 15-year mortgage note on December 31, 2016. The...
Problem 15-4A
Talkington Electronics issues a $350,000, 3%, 15-year mortgage
note on December 31, 2016. The proceeds from the note are to be
used in financing a new research laboratory. The terms of the note
provide for annual installment payments, exclusive of real estate
taxes and insurance, of $41,031. Payments are due on December
31.
Prepare an installment payments schedule for the first 4 years.
(Round answers to 0 decimal places, e.g.
15,250.)
Annual Interest Period
Cash Payment
Interest Expense...
Cheyenne Corp. has issued 91,000 shares of $5 par value common stock. It was authorized 499,000...
Cheyenne Corp. has issued 91,000 shares of $5 par value common
stock. It was authorized 499,000 shares. The paid-in capital in
excess of par value on the common stock is $264,000. The
corporation has reacquired 6,700 shares at a cost of $55,000 and is
currently holding those shares. It also had accumulated other
comprehensive income of $67,000.
The corporation also has 1,700 shares issued and outstanding of 8%,
$104 par value preferred stock. It was authorized 10,900 shares.
The paid-in...
Exercise 15-17
Metlock Corporation’s post-closing trial balance at December 31,
2020, is shown as follows.
METLOCK CORPORATION
POST-CLOSING TRIAL BALANCE
DECEMBER 31, 2020
Dr.
Cr.
Accounts payable
$ 307,700
Accounts receivable
$ 492,000
Accumulated depreciation—buildings
189,000
Additional paid-in capital in excess
of par—common
1,386,000
From treasury stock
161,000
Allowance for doubtful accounts
29,000
Bonds payable
319,000
Buildings
1,496,000
Cash
188,000
Common stock ($1 par)
202,000
Dividends payable (preferred stock—cash)
4,300
Inventory
609,000
Land
380,000
Preferred stock ($50 par)
450,000
Prepaid...
On January 1, 2020, Crane Corporation had the following
stockholders’ equity accounts.
Common Stock (no par value, 91,000 shares issued and
outstanding)
$1,385,000
Retained Earnings
546,000
During the year, the following transactions occurred.
Feb. 1
Declared a $1 cash dividend per share to stockholders of record
on February 15, payable March 1.
Mar. 1
Paid the dividend declared in February.
Apr. 1
Announced a 3-for-1 stock split. Prior to the split, the market
price per share was $37.
July 1...
Problem 15-4A
Talkington Electronics issues a $350,000, 3%, 15-year mortgage
note on December 31, 2016. The proceeds from the note are to be
used in financing a new research laboratory. The terms of the note
provide for annual installment payments, exclusive of real estate
taxes and insurance, of $41,031. Payments are due on December
31.
Prepare an installment payments schedule for the first 4 years.
(Round answers to 0 decimal places, e.g.
15,250.)
Annual Interest Period
Cash Payment
Interest Expense...
Cheyenne Corp. has issued 91,000 shares of $5 par value common
stock. It was authorized 499,000 shares. The paid-in capital in
excess of par value on the common stock is $264,000. The
corporation has reacquired 6,700 shares at a cost of $55,000 and is
currently holding those shares. It also had accumulated other
comprehensive income of $67,000.
The corporation also has 1,700 shares issued and outstanding of 8%,
$104 par value preferred stock. It was authorized 10,900 shares.
The paid-in...
Most questions answered within 3 hours.
-
Need help with drawing the mechanism of succinic anhydride to
succinimide via ammonia and heat. Kind...
asked 18 minutes ago -
Steve is a sales rep for Clearwater Purification Systems, a
national manufacturer of residential water treatment...
asked 2 minutes ago -
Question 4. Using your knowledge of IS-LM, solve the following:
8
12
1+r 1+r
(a) If...
asked 7 minutes ago -
Paige's Properties Inc. reported 2018 net income of $2.90
million and depreciation of $269,000. Paige's Properties,...
asked 16 minutes ago -
Using loops, write a C# program that asks the user to
enter repeatedly an integer number,...
asked 22 minutes ago -
A researcher conducts an experiment comparing three treatment
conditions. The data consist of n = 34...
asked 40 minutes ago -
A generating station is producing 1.8 x 106 W of power that is
to be sent...
asked 32 minutes ago -
Consider the reaction Mg(s)+Fe2+(aq)→Mg2+(aq)+Fe(s) at 49 ∘C ,
where [Fe2+]= 3.30 M and [Mg2+]= 0.210 M...
asked 32 minutes ago -
Of men aged 65 and over 20.5% are still in the US labor force. A
random...
asked 49 minutes ago -
A bag contains 80 balls numbered 1, . . . , 80. Before the game
starts,...
asked 1 hour ago -
2)Calculate the molar mass of an unknown gas with a mass of
0.462 grams that occupies...
asked 1 hour ago -
The solubility of lead sulphate, PbSO4, is 4.25 x
10-3 g per 100 mL of solution....
asked 1 hour ago