Larkspur Company has a stock portfolio valued at $3,500. Its cost was $2,700. If the Fair...
Larkspur Company has a stock portfolio valued at $3,500. Its
cost was $2,700. If the Fair Value Adjustment account has a debit
balance of $140, prepare the journal entry at year-end.
(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.)
|
Account Titles and Explanation |
Debit |
Credit |
Homework Answers
| Answer | |||
| Account title and explanation | Debit | Credit | |
| Fair value adjustment (Available-for-sale) | $660 | (3500-2700-140) | |
| Unrealized Holding Gain or Loss | $ 660 | ||
| (To record fair value adjustment) |
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Larkspur Company has a stock portfolio valued at $3,500. Its
cost was $2,700. If the Fair...
Brief Exercise 17-8 Ayayai Company has a stock portfolio valued at $4,800. Its cost was $4,190....
Brief Exercise 17-8 Ayayai Company has a stock portfolio valued at $4,800. Its cost was $4,190. If the Fair Value Adjustment account has a debit balance of $110, prepare the journal entry at year-end. (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.) Account Titles and Explanation Debit Credit SHOW LIST OF ACCOUNTS LINK TO TEXT
On December 21, 2017, Bucky Katt Company provided you with the following information regarding its equity investments. December 31, 2017 Fair Value Unrealized Gain (Loss) Investments (Trading) Cost (...
On December 21, 2017, Bucky Katt Company provided you with the following information regarding its equity investments. December 31, 2017 Fair Value Unrealized Gain (Loss) Investments (Trading) Cost (1,000) (1,000 ) 600 (1,400) Clemson Corp. stock Colorado Co. stock Buffaloes Co. stock Total of portfolio Previous fair value adjustment balance Fair value adjustment-Cr. $20,000 $19,000 9,000 20,000 20,600 $50,000 $48,600 10,000 0 $ (1,400) During 2018, Colorado Company stock was sold for $9,400. The fair value of the stock on...
Larkspur Company leases an automobile with a fair value of $13,354 from John Simon Motors, Inc.,...
Larkspur Company leases an automobile with a fair value of
$13,354 from John Simon Motors, Inc., on the following terms:
1.
Noncancelable term of 50 months.
2.
Rental of $310 per month (at end of each month). (The present
value at 1% per month is $12,151.)
3.
Estimated residual value after 50 months is $1,100. (The
present value at 1% per month is $669.) Larkspur Company guarantees
the residual value of $1,100.
4.
Estimated economic life of the automobile is...
Pina Colada Corporation purchased 1,050 common shares of Nolan Inc. common stock for $14,600 (Pina Colada...
Pina Colada Corporation purchased 1,050 common shares of Nolan Inc. common stock for $14,600 (Pina Colada does not have significant influence). During the year, Nolan paid a cash dividend of $3.90 per share. At year end, Nolan stock was selling for $35.20 per share. Prepare Pina Colada’s journal entry to record the purchase of the investment. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for...
On December 21, 2020, Sage Company provided you with the following information regarding its equity investments....
On December 21, 2020, Sage Company provided you with the
following information regarding its equity investments.
Securities
Cost
Fair Value
Unrealized
Gain
(Loss)
SC Corp. stock
$42,000
38,400
$(3,600
)
True Co. stock
52,000
57,920
5,920
Plus, Inc. stock
26,800
26,503
(297
)
Total of portfolio
$120,800
$122,823
2,023
Previous fair value adjustment
balance
-0-
Fair value adjustment – Dr.
$2,023
During 2021, the Plus, Inc. stock was sold for $27,270. The fair
value of the stock on December 31,...
At December 31, 2020, the available-for-sale debt portfolio for Marigold, Inc. is as follows. Security Cost...
At December 31, 2020, the available-for-sale debt portfolio for Marigold, Inc. is as follows. Security Cost Fair Value $31,500 $27,000 22,500 25,200 41,400 45,900 Total $95,400 $98,100 Previous fair value adjustment balance-Dr. Fair value adjustment-Dr. Unrealized Gain (Loss) $(4,500 ) 2,700 4,500 2,700 720 $1,980 On January 20, 2021, Marigold, Inc. sold security A for $27,180. The sale proceeds are net of brokerage fees. (a) Prepare the adjusting entry at December 31, 2020, to report the portfolio at fair value....
Sunland Company has issued 2,500 shares of common stock and 500 shares of preferred stock for...
Sunland Company has issued 2,500 shares of common stock and 500 shares of preferred stock for a lump sum of $94,000 cash Give the entry for the issuance assuming the par value of the common stock was $5 and the fair value $30, and the par value of the preferred stock was $40 and the fair value $50. (Each valuation is on a per share basis and there are ready markets for each stock.) (Credit account titles are automatically indented...
Teal Company issues 4,300 shares of restricted stock to its CFO, Dane Yaping, on January 1,...
Teal Company issues 4,300 shares of restricted stock to its CFO, Dane Yaping, on January 1, 2017. The stock has a fair value of $123,000 on this date. The service period related to this restricted stock is 4 years. Vesting occurs if Yaping stays with the company for 4 years. The par value of the stock is $5. At December 31, 2018, the fair value of the stock is $135,000. (a) Prepare the journal entries to record the restricted stock...
At December 31, 2020, the available-for-sale debt portfolio for Skysong, Inc. is as follows. Unrealized Gain...
At December 31, 2020, the available-for-sale debt portfolio for Skysong, Inc. is as follows. Unrealized Gain (Loss) $14,250) 2,550 4,250 Security Cost Fair Value $29,750 $25,500 21,250 23,800 39,100 43,350 Total $90,100 $92,650 Previous fair value adjustment balance- Dr. Fair value adjustment-Dr. 2,550 680 $1,870 On January 20, 2021, Skysong, Inc. sold security A for $25,670. The sale proceeds are net of brokerage fees. Prepare the adjusting entry at December 31, 2020, to report the portfolio at fair value. (Credit...
At December 31, 2020, the available-for-sale debt portfolio for Carla, Inc. is as follows. Unrealized Gain...
At December 31, 2020, the available-for-sale debt portfolio for Carla, Inc. is as follows. Unrealized Gain (Loss) $(4,125) 2,475 4,125 B Security Cost Fair Value $28,875 $24,750 20,625 23,100 C 37,950 42,075 Total $87,450 $89,925 Previous fair value adjustment balance- Dr. Fair value adjustment-Dr. 2.475 660 $1,815 On January 20, 2021, Carla, Inc. sold security A for $24,915. The sale proceeds are net of brokerage fees. Prepare the adjusting entry at December 31, 2020, to report the portfolio at fair...
Brief Exercise 17-8 Ayayai Company has a stock portfolio valued at $4,800. Its cost was $4,190. If the Fair Value Adjustment account has a debit balance of $110, prepare the journal entry at year-end. (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.) Account Titles and Explanation Debit Credit SHOW LIST OF ACCOUNTS LINK TO TEXT
On December 21, 2017, Bucky Katt Company provided you with the following information regarding its equity investments. December 31, 2017 Fair Value Unrealized Gain (Loss) Investments (Trading) Cost (1,000) (1,000 ) 600 (1,400) Clemson Corp. stock Colorado Co. stock Buffaloes Co. stock Total of portfolio Previous fair value adjustment balance Fair value adjustment-Cr. $20,000 $19,000 9,000 20,000 20,600 $50,000 $48,600 10,000 0 $ (1,400) During 2018, Colorado Company stock was sold for $9,400. The fair value of the stock on...
Larkspur Company leases an automobile with a fair value of
$13,354 from John Simon Motors, Inc., on the following terms:
1.
Noncancelable term of 50 months.
2.
Rental of $310 per month (at end of each month). (The present
value at 1% per month is $12,151.)
3.
Estimated residual value after 50 months is $1,100. (The
present value at 1% per month is $669.) Larkspur Company guarantees
the residual value of $1,100.
4.
Estimated economic life of the automobile is...
On December 21, 2020, Sage Company provided you with the
following information regarding its equity investments.
Securities
Cost
Fair Value
Unrealized
Gain
(Loss)
SC Corp. stock
$42,000
38,400
$(3,600
)
True Co. stock
52,000
57,920
5,920
Plus, Inc. stock
26,800
26,503
(297
)
Total of portfolio
$120,800
$122,823
2,023
Previous fair value adjustment
balance
-0-
Fair value adjustment – Dr.
$2,023
During 2021, the Plus, Inc. stock was sold for $27,270. The fair
value of the stock on December 31,...
At December 31, 2020, the available-for-sale debt portfolio for Marigold, Inc. is as follows. Security Cost Fair Value $31,500 $27,000 22,500 25,200 41,400 45,900 Total $95,400 $98,100 Previous fair value adjustment balance-Dr. Fair value adjustment-Dr. Unrealized Gain (Loss) $(4,500 ) 2,700 4,500 2,700 720 $1,980 On January 20, 2021, Marigold, Inc. sold security A for $27,180. The sale proceeds are net of brokerage fees. (a) Prepare the adjusting entry at December 31, 2020, to report the portfolio at fair value....
At December 31, 2020, the available-for-sale debt portfolio for Skysong, Inc. is as follows. Unrealized Gain (Loss) $14,250) 2,550 4,250 Security Cost Fair Value $29,750 $25,500 21,250 23,800 39,100 43,350 Total $90,100 $92,650 Previous fair value adjustment balance- Dr. Fair value adjustment-Dr. 2,550 680 $1,870 On January 20, 2021, Skysong, Inc. sold security A for $25,670. The sale proceeds are net of brokerage fees. Prepare the adjusting entry at December 31, 2020, to report the portfolio at fair value. (Credit...
At December 31, 2020, the available-for-sale debt portfolio for Carla, Inc. is as follows. Unrealized Gain (Loss) $(4,125) 2,475 4,125 B Security Cost Fair Value $28,875 $24,750 20,625 23,100 C 37,950 42,075 Total $87,450 $89,925 Previous fair value adjustment balance- Dr. Fair value adjustment-Dr. 2.475 660 $1,815 On January 20, 2021, Carla, Inc. sold security A for $24,915. The sale proceeds are net of brokerage fees. Prepare the adjusting entry at December 31, 2020, to report the portfolio at fair...
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