Trading (debt) securities are: Multiple Choice Recorded at cost and then reported at cost over the...
Trading (debt) securities are:
Multiple Choice
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Recorded at cost and then reported at cost over the life of the investment.
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Reported at historical cost and then adjusted for the amortized amount of any difference between cost and maturity value.
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Recorded at cost and then reported at fair value on the balance sheet.
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Intended to be held to maturity.
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Always classified as Long-Term Investments.
Homework Answers
Answer is Recorded at Cost and then reported at fair value on the balance Sheet
Trading securities are purchased with short term intention . They are shown as short term investments under Current Assets. The initial value is recorded at cost purchased. At end of the year the fair value of the securities is calculated and accordingly entry it taken to report at fair value . The unrealized gain or loss is accounted in other comprehensive income(loss) and part of the Stockholders' equity
Hence answer is Recorded at cost and then reported at fair value on the Balance sheet.
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Trading (debt) securities are:
Multiple Choice
Recorded at cost and then reported at cost over the...
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Held to Maturity Securities: ABC Co. Bonds Trading Securities: Amortized cost 12/31/2017 $367,500 Amortized Cost 12/31/2018 $360,000 awarded pred Fair Value 12/31/2017 $375,000 Fair value 12/31/2017 $ 48,000 $ 47,000 $ 44,000 Fair Value 12/31/2017 $130,500 DEF Co. Bonds GEH Inc. Bonds IJK Inc. Bonds Available for sale Securities: LMN Co. Bonds Fair Value 12/31/2018 $400,000 Fair Value 12/31/2018 $ 59,500 $ 77,000 $ 38,500 Fair Value 12/31/2018 $150,400 Cost $ 66,000 $ 39,000 $ 32,990 Cost $140,000 2140,000 What...
In a continuation of their efforts to explore the financial
condition of ABC Company, the Board of Directors has now started to
explore the various investment strategies of the company. They
would like to understand more about the differences between debt
versus equity investments. They also wish to learn more about the
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your text and outside sources, explain the following:
(1) debt versus equity securities;
(2) various types of investments...
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