Homework Answers
Correct option is "C" -The difference between historical cost and market value of trading securities .
The balance in fair value adjustment account -Trading securities at end of period is equals to Market value and cost .
Say for example :
An investment (trading )cost $ 1000 .At the end of year 1 ,The value falls to $ 800 .At the end of year 2 The value is $ 1200 and at the end of year 3 ,it is $ 1400.
| Year | Value | Fair value adjustment |
| Cost | 1000 | |
| End of year | ||
| 1 | 800 | 800-1000=-200 |
| 2 | 1200 | 1200-800=400 |
| 3 | 1400 | 1400-1200=200 |
| Total | 400 |
The balance of fair value adjustment account = Market value -historical cost
= 1400 -1000
= $ 400
Add Answer to:
what should the balance in the fair value adjustment - trading
account be at the end...
1-If the Fair Value Adjustment minus Trading account for trading debt investments has a debit balance,...
1-If the Fair Value Adjustment minus Trading account for trading debt investments has a debit balance, it is 2-A preferred stock is an example of a debt security. • True False 3-Equity securities, in which the investor lacks the ability to participate in the decisions of the investee company, are initially accounted for at the lower-of-cost-or-market value. True . False 4- are equity securities in which the investor owns between 20% and 50% of the investee's voting stock. 5-Securities are...
1-If the Fair Value Adjustment minus trading account for trading debt investments has a debit balance,...
1-If the Fair Value Adjustment minus trading account for trading debt investments has a debit balance, it a. Added to the trading debt investment account to determine carrying value b. Considered to be a contra account C. Subtracted from the trading debt investment account to determine carrying value d. Reported in the other income and expenses section of the income statement. 2-when a trading debt security is disposed of, the amount of gain or loss is calculated as the difference...
Fair Value Adjustment
Founded on January 1, 2017, Gehl Company had the following short-term investments in securities at the end of 2017 and 2018 (all were held in the “trading” portfolio): Equity SecurityCost12/31/18 Fair ValueA$96,000$94,000B184,000162,000C126,000136,000 Required:If the company recorded a $4,000 debit to its Fair value adjustment—Trading securities account at the end of 2018 as its fair value adjustment, what must have been the unrealized gain or loss recorded at the end of 2017?
UJUUN. 2 IS 15 of 49 (12 complete) If the Fair Value Adjustment - Trading account...
UJUUN. 2 IS 15 of 49 (12 complete) If the Fair Value Adjustment - Trading account for trading debt investments has a debit balance, it is O A. considered to be a contra account O B. subtracted from the Trading Debt Investment account to determine carrying value OC. reported in the other income and expenses section of the income statement OD. added to the Trading Debt Investment account to determine carrying value Click to select your answer. о не е...
QS 15-5 Multiyear fair value adjustments to trading securities LO P1 Kitty Company began operations in...
QS 15-5 Multiyear fair value adjustments to trading securities LO P1 Kitty Company began operations in 2016 and maintains short-term investments in trading securities. The year-end cost and fair values for its portfolio of these investments follow. Cost $65 Fair Value $49 Portfolio of Trading Securities December 31, 2016 December 31, 2017 December 31, 2018 December 31, 2019 Prepare journal entries to record each December 31 year-end fair value adjustment for these above securities. Prepare journal entries to record each...
Valuing Trading Securities at Fair Value On January 1, Valuation Allowance for Trading Investments had a...
Valuing Trading Securities at Fair Value On January 1, Valuation Allowance for Trading Investments had a zero balance. On December 31, the cost of the trading securities portfolio was $48,800, and the fair value was $49,900. Prepare the December 31 adjusting journal entry to record the unrealized gain or loss on trading investments. Dec. 31 Trading Investments Trading Investments Valuing Available-for-Sale Securities at Fair Value On January 1, Valuation Allowance for Available-for-Sale Investments had a zero balance. On December 31,...
,????? Question 34 The fair value accounting adjustment: Not yet answered Marked out of 100 Remove...
,?????
Question 34 The fair value accounting adjustment: Not yet answered Marked out of 100 Remove flag Select one: a. Affects both the balance sheet and the current period income statement. O b. Is not made when the current market value of investments in marketable securities is higher than original cost. c. May result in either a gain or a loss to be reported in the current period income statement. d. Represents a departure from the cost principle. Question 35
At Decrmber 31, 2014, the trading securities are as follows. Security Cost Fair Value A &nbs
At Decrmber 31, 2014, the trading securities are as follows. Security Cost Fair Value A $17400 $15900 B 12700 14300 C 23200 19100 53300 49300 Show the balance sheet and income statement presentation at December 32, 2014, after adjustment of fair value.
Problem 15-1A Recording and adjusting trading debt securities LO P1 Kirkland Company had no trading debt...
Problem 15-1A Recording and adjusting trading debt securities LO P1 Kirkland Company had no trading debt securities prior to this year. It had the following transactions this year involving trading debt securities. Aug. Sept. Oct. 2 Purchased Verizon bonds for $10,000. 7 Purchased Apple bonds for $35,000. 12 Purchased Mastercard bonds for $20,000. 21 Sold some of its Verizon bonds that had cost $2,000 for $2,100 cash. 23 Sold some of its Apple bonds that had cost $15,000 for $15,...
2 points Question 1.24 The valuation allowance for trading investments account is found on the o...
2 points Question 1.24 The valuation allowance for trading investments account is found on the o income statement as other revenve (expense) balance sheet as an adjustment to the asset account o statement of retained eamings O balance sheet as an adustment to stockholders' equity 2 points Question 1.25 Trading securities are reported at fair value on the balance sheet and as unrealized gains or losses on the income statement o not reported on the balance sheet reported as unrealized...
1-If the Fair Value Adjustment minus Trading account for trading debt investments has a debit balance, it is 2-A preferred stock is an example of a debt security. • True False 3-Equity securities, in which the investor lacks the ability to participate in the decisions of the investee company, are initially accounted for at the lower-of-cost-or-market value. True . False 4- are equity securities in which the investor owns between 20% and 50% of the investee's voting stock. 5-Securities are...
1-If the Fair Value Adjustment minus trading account for trading debt investments has a debit balance, it a. Added to the trading debt investment account to determine carrying value b. Considered to be a contra account C. Subtracted from the trading debt investment account to determine carrying value d. Reported in the other income and expenses section of the income statement. 2-when a trading debt security is disposed of, the amount of gain or loss is calculated as the difference...
UJUUN. 2 IS 15 of 49 (12 complete) If the Fair Value Adjustment - Trading account for trading debt investments has a debit balance, it is O A. considered to be a contra account O B. subtracted from the Trading Debt Investment account to determine carrying value OC. reported in the other income and expenses section of the income statement OD. added to the Trading Debt Investment account to determine carrying value Click to select your answer. о не е...
QS 15-5 Multiyear fair value adjustments to trading securities LO P1 Kitty Company began operations in 2016 and maintains short-term investments in trading securities. The year-end cost and fair values for its portfolio of these investments follow. Cost $65 Fair Value $49 Portfolio of Trading Securities December 31, 2016 December 31, 2017 December 31, 2018 December 31, 2019 Prepare journal entries to record each December 31 year-end fair value adjustment for these above securities. Prepare journal entries to record each...
,?????
Question 34 The fair value accounting adjustment: Not yet answered Marked out of 100 Remove flag Select one: a. Affects both the balance sheet and the current period income statement. O b. Is not made when the current market value of investments in marketable securities is higher than original cost. c. May result in either a gain or a loss to be reported in the current period income statement. d. Represents a departure from the cost principle. Question 35
Problem 15-1A Recording and adjusting trading debt securities LO P1 Kirkland Company had no trading debt securities prior to this year. It had the following transactions this year involving trading debt securities. Aug. Sept. Oct. 2 Purchased Verizon bonds for $10,000. 7 Purchased Apple bonds for $35,000. 12 Purchased Mastercard bonds for $20,000. 21 Sold some of its Verizon bonds that had cost $2,000 for $2,100 cash. 23 Sold some of its Apple bonds that had cost $15,000 for $15,...
2 points Question 1.24 The valuation allowance for trading investments account is found on the o income statement as other revenve (expense) balance sheet as an adjustment to the asset account o statement of retained eamings O balance sheet as an adustment to stockholders' equity 2 points Question 1.25 Trading securities are reported at fair value on the balance sheet and as unrealized gains or losses on the income statement o not reported on the balance sheet reported as unrealized...
Most questions answered within 3 hours.
-
Calcium dihydrogen phosphate, Ca(H2PO4)2, and sodium hydrogen
carbonate, NaHCO3, are ingredients of baking powder that react...
asked 1 minute ago -
can you identify some rules of how R is calculated for a circuit
in series? For...
asked 9 minutes ago -
Design and implement your own linked list class to hold a sorted
list of integers in...
asked 16 minutes ago -
Write the balanced chemical equation for the reaction between
iodate and bisulfite. Does the order with...
asked 11 minutes ago -
Swissie Triangular Arbitrage. The following exchange rates are
available to you. (You can buy or sell...
asked 15 minutes ago -
a car starts from rest at a stop sign. It accelerates
at 4.4m/s² for 7.5s, coasts...
asked 16 minutes ago -
1. Sketch the expected Mass Spectrum of Pentane (C5H12)
2. Draw the most stable Newman projection...
asked 21 minutes ago -
There are changes in the dynamics of a relationship of a family
when family takes on...
asked 23 minutes ago -
Prove that the following is a valid cumulative distribution
function
F(x) = x/(1+x) for a>=0
0...
asked 23 minutes ago -
Caculate the PH THANK YOU!
[OH−] = 1.9×10−7 M
[OH−] = 1.6×10−8 M
[OH−] = 7.2×10−11...
asked 34 minutes ago -
Suppose you drive an old truck with a 32 gallon gas tank that
gets 16 miles/gallon....
asked 36 minutes ago -
What can be the anticipated results of curing diabetes with stem
cells?
asked 32 minutes ago