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 financial statement. You must show the journal entry that will be made to adjust the financials statements.
Homework Answers
Journal entry:
| Account title | debit | credit |
|---|---|---|
|
Maturity bonds Discount on amortization Cash |
$278000 $22000 . |
. . 300000 |
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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...
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...
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...
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...
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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...
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...
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...
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...
Beresford Inc. purchased several investments in debt securities during 2020, its first year of operations their fair values are not considered permanent Held-to-Maturity Fair Value Fair Value Amortized Cost Amortized Cost Securities: 12/31/2020 12/31/2021 12/31/2020 $380,500 12/31/2021 ABC Co. Bonds S 388.000 $413,000 $373.000 Fair Value Fair Value Trading Securities: 12/31/2020 S 58,000 S 80.000 S 57,000 12/31/2021 Cost S 74 400 S 52,000 S 45,900 S 69.000 S 90.000 S 51,500 DEF Co Bonds GEH Inc. Bonds IJK Inc....
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