Scenario: Aviation Inc. purchased securities on 1/1/2019 that would initially be accounted for in the financial...
Scenario:
Aviation Inc. purchased securities on 1/1/2019 that would initially be accounted for in the financial statements as an investment held-to-maturity.
|
Held to Maturity Securities: |
Cost 1/1/2019 |
Fair Market Value 12/31/2019 |
|||||
|
Bronx Co. Bonds |
$ |
300,000 |
$ |
278,000 |
|||
At 12/31/2019, Aviation Inc. decided that they would sell the bond within 90 days. Assume that Aviation now has to adjust their financial statements and account for the investment as available for sale. You must show the journal entry that will be made to adjust the financial statements
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Scenario:
Aviation Inc. purchased securities on 1/1/2019 that would
initially be accounted for in the financial...
Aviation Inc. purchased securities on 1/1/2019 that would initially be accounted for in the financial statements...
Aviation Inc. purchased securities on 1/1/2019 that would initially be accounted for in the financial statements as an investment held-to-maturity. Held to Maturity Securities: Cost 1/1/2019 Fair Market Value 12/31/2019 Bronx Co. Bonds $ 300,000 $ 278,000 At 12/31/2019, Aviation Inc. decided that they would sale the bond within 90 days. Assume that Aviation now has to adjust their financial statements and account for the investment as available for sale. How does this affect the financial statements and what are...
Aviation Inc. purchased securities on 1/1/2019 that would initially be accounted for in the financial statements...
Aviation Inc. purchased securities on 1/1/2019 that would initially be accounted for in the financial statements as an investment held-to-maturity. Held to Maturity Securities: Cost 1/1/2019 Fair Market Value 12/31/2019 Bronx Co. Bonds $ 300,000 $ 278,000 At 12/31/2019, Aviation Inc. decided that they would sale the bond within 90 days. Assume that Aviation now has to adjust their financial statements and account for the investment as available for sale. Explain the impact that the change will have on each...
Aviation Inc. purchased securities on 1/1/2019 that would initially be accounted for in the financial statements...
Aviation Inc. purchased securities on 1/1/2019 that would initially be accounted for in the financial statements as an investment held-to-maturity. Held to Maturity Securities: Cost 1/1/2019 Fair Market Value 12/31/2019 Bronx Co. Bonds $ 300,000 $ 278,000 At 12/31/2019, Aviation Inc. decided that they would sale the bond within 90 days. Assume that Aviation now has to adjust their financial statements and account for the investment as available for sale. Write a memo detailing the impact that the change will...
Question 12 (1 point) Beresford Inc. purchased several investments in debt securities during 2018, its first...
Question 12 (1 point) Beresford Inc. purchased several investments in debt securities during 2018, its first year of operations. The following information pertains to these securities. The fluctuations in their fair values are not considered permanent Held to Maturity Fair Value Securities: 12/31/2017 ABC Co. Bonds $375,000 Trading Fair Value Securities : 12/31/2017 DEF Co. Bonds $ 48,000 GEH Inc. Bonds $ 47,000 DOK Inc. Bonds $ 44,000 Available for Fair Value Sale Securities : 12/31/2017 LMN Co. Bonds $130,500...
1. Andrews Specialty, Inc., offers financial services through its investment division. Periodically, Andrews buys and sells...
1. Andrews Specialty, Inc., offers financial services through its investment division. Periodically, Andrews buys and sells securities with the intent of earning profits on short- term differences in price. The following selected transactions relate to Andrews's investment activities during the last quarter of 2018 and the beginning of 2019. The only securities held by Andrews at October 1, 2018 were $2,000,000 of 12% bonds of Pearson Corporation that were purchased on June 2, 2018 at face value. The Pearson Corporation...
Watson Company has several investments in the securities of other companies. The following information regarding these...
Watson Company has several investments in the securities of other companies. The following information regarding these investments is available at December 31, 2019. 1. Watson holds bonds issued by Fowler Corp. The bonds have an amortized cost of $600,000, and their fair value at December 31, 2019, is $700,000. Watson intends to hold the bonds until they mature on December 31, 2022. 2. Watson has invested idle cash in the equity securities of several publicly traded companies. Watson intends to...
Beresford Inc. purchased several investments in debt securities during 2020, its first year of operations. The...
Beresford Inc. purchased several investments in debt securities during 2020, its first year of operations. The following information pertains to these securities. The fluctuations in their fair values are not considered permanent Amortired Cost 12/31/2021 $375,000 Amortized Cost 12/31/2020 $380,500 Fair Value 12/31/2021 $413,000 Fair Value 12/31/2020 $388,000 Cost Held-to-Maturity Securities: ABC Co. Bonds $ 74,400 $ 52,000 $ 45,900 Fair Value Fair Value 12/31/2020 12/31/2021 $ 58,000 $ 69,000 $ 60,000 $ 96,300 $ 57,000 $ 51,500 Cost Trading...
forget it Spreadsheet 8 - Investment in bonds/trading securities Hinton Company purchased bonds as an trading...
forget it
Spreadsheet 8 - Investment in bonds/trading securities Hinton Company purchased bonds as an trading security investment in early 2018. The company is now ready to sell the bond investment on June 20, 2019. Available accounts: Unrealized Holding Gain - NI Unrealized Holding Loss -NI Fair Value Adjustment Facts: Carrying amount of investment 12/31/18 Carrying amount of investment 6/20/2019 Fair value on 12/31/18 Fair value on 6/20/2019 $57,200 60,500 55,900 61,600 Journalize the transaction to adjust the bond investment...
Beresford Inc. purchased several investments in debt securities during 2020, its first year of operations. The...
Beresford Inc. purchased several investments in debt securities during 2020, its first year of operations. The following information pertains to these securities. The fluctuations in their fair values are not considered permanent. Held-to-Maturity Securities: ABC Co. Bonds Fair Value 12/31/2020 $382,000 Fair Value 12/31/2021 $407,000 Amortized Cost 12/31/2020 $374,500 Amortized Cost 12/31/2021 $367,000 Trading Securities: DEF Co. Bonds GEH Inc. Bonds IJK Inc. Bonds Fair Value 12/31/2020 $ 52,000 $ 54,000 $ 51,000 Fair Value 12/31/2021 $ 63,000 $ 80,000...
Beresford Inc. purchased several investments in debt securities during 2020, its first year of operations. The...
Beresford Inc. purchased several investments in debt securities during 2020, its first year of operations. The following information pertains to these securities. The fluctuations in their fair values are not considered permanent. Held-to-Maturity Securities: ABC Co. Bonds Fair Value 12/31/2020 $388,000 Fair Value 12/31/2021 $413,000 Amortized Cost 12/31/2020 $380,500 Amortized cost 12/31/2021 $373,000 Trading Securities: DEF Co. Bonds GEH Inc. Bonds IJK Inc. Bonds Fair Value 12/31/2020 $ 58,000 $ 60,000 $ 57,000 Fair Value 12/31/2021 $ 69,000 $ 96,300...
Question 12 (1 point) Beresford Inc. purchased several investments in debt securities during 2018, its first year of operations. The following information pertains to these securities. The fluctuations in their fair values are not considered permanent Held to Maturity Fair Value Securities: 12/31/2017 ABC Co. Bonds $375,000 Trading Fair Value Securities : 12/31/2017 DEF Co. Bonds $ 48,000 GEH Inc. Bonds $ 47,000 DOK Inc. Bonds $ 44,000 Available for Fair Value Sale Securities : 12/31/2017 LMN Co. Bonds $130,500...
1. Andrews Specialty, Inc., offers financial services through its investment division. Periodically, Andrews buys and sells securities with the intent of earning profits on short- term differences in price. The following selected transactions relate to Andrews's investment activities during the last quarter of 2018 and the beginning of 2019. The only securities held by Andrews at October 1, 2018 were $2,000,000 of 12% bonds of Pearson Corporation that were purchased on June 2, 2018 at face value. The Pearson Corporation...
Beresford Inc. purchased several investments in debt securities during 2020, its first year of operations. The following information pertains to these securities. The fluctuations in their fair values are not considered permanent Amortired Cost 12/31/2021 $375,000 Amortized Cost 12/31/2020 $380,500 Fair Value 12/31/2021 $413,000 Fair Value 12/31/2020 $388,000 Cost Held-to-Maturity Securities: ABC Co. Bonds $ 74,400 $ 52,000 $ 45,900 Fair Value Fair Value 12/31/2020 12/31/2021 $ 58,000 $ 69,000 $ 60,000 $ 96,300 $ 57,000 $ 51,500 Cost Trading...
forget it
Spreadsheet 8 - Investment in bonds/trading securities Hinton Company purchased bonds as an trading security investment in early 2018. The company is now ready to sell the bond investment on June 20, 2019. Available accounts: Unrealized Holding Gain - NI Unrealized Holding Loss -NI Fair Value Adjustment Facts: Carrying amount of investment 12/31/18 Carrying amount of investment 6/20/2019 Fair value on 12/31/18 Fair value on 6/20/2019 $57,200 60,500 55,900 61,600 Journalize the transaction to adjust the bond investment...
Beresford Inc. purchased several investments in debt securities during 2020, its first year of operations. The following information pertains to these securities. The fluctuations in their fair values are not considered permanent. Held-to-Maturity Securities: ABC Co. Bonds Fair Value 12/31/2020 $382,000 Fair Value 12/31/2021 $407,000 Amortized Cost 12/31/2020 $374,500 Amortized Cost 12/31/2021 $367,000 Trading Securities: DEF Co. Bonds GEH Inc. Bonds IJK Inc. Bonds Fair Value 12/31/2020 $ 52,000 $ 54,000 $ 51,000 Fair Value 12/31/2021 $ 63,000 $ 80,000...
Beresford Inc. purchased several investments in debt securities during 2020, its first year of operations. The following information pertains to these securities. The fluctuations in their fair values are not considered permanent. Held-to-Maturity Securities: ABC Co. Bonds Fair Value 12/31/2020 $388,000 Fair Value 12/31/2021 $413,000 Amortized Cost 12/31/2020 $380,500 Amortized cost 12/31/2021 $373,000 Trading Securities: DEF Co. Bonds GEH Inc. Bonds IJK Inc. Bonds Fair Value 12/31/2020 $ 58,000 $ 60,000 $ 57,000 Fair Value 12/31/2021 $ 69,000 $ 96,300...
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