Presented below are two independent cases related to available-for-sale debt investments. Case 1 Case 2 Amortized...
Presented below are two independent cases related to
available-for-sale debt investments.
| Case 1 | Case 2 | |||
| Amortized cost | $42,140 | $101,000 | ||
| Fair value | 32,010 | 111,120 | ||
| Expected credit losses | 26,930 | 93,580 |
For each case, determine the amount of impairment loss, if any.
(If no loss, please enter 0. Do not leave any fields
blank.)
| Case 1 | ||
| Impairment Loss | $ |
| Case 2 | ||
| Impairment Loss | $ |
Homework Answers
| Case 1 | ||||||
| impairment loss | ||||||
| Amortized cost- fair value | ||||||
| 42,140-32,010 | ||||||
| 10130 | answer | |||||
| Case 2 | ||||||
| impairment loss | ||||||
| Amortized cost- fair value | ||||||
| 101,000-111,120 | ||||||
| 0 | answer | |||||
| ( since the fair value is more than amoritzed cost so | ||||||
| no loss occurred in this case) | ||||||
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Presented below are two independent cases related to
available-for-sale debt investments.
Case 1
Case 2
Amortized...
Presented below are two independent cases related to available-for-sale debt investments. Case 1 Case 2 Amortized...
Presented below are two independent cases related to
available-for-sale debt investments.
Case 1
Case 2
Amortized cost
$40,200
$93,300
Fair value
30,990
104,120
Expected credit losses
26,420
85,640
For each case, determine the amount of impairment loss, if any.
(If no loss, please enter 0. Do not leave any fields
blank.)
Case 1
Impairment Loss
$
Case 2
Impairment Loss
$
DIEU LACILISC 1 11 Presented below are two independent cases related to available-for-sale debt investments. Amortized...
DIEU LACILISC 1 11 Presented below are two independent cases related to available-for-sale debt investments. Amortized cost Fair value Expected credit losses Case 1 $37,020 27,060 21,600 Case 2 $101,200 110,650 93,050 For each case, determine the amount of impairment loss, if any. (If no loss, please enter 0. Do not leave any fields blank.) Case 1 Impairment Loss Case 2 Impairment Loss
Need help in analysis the below Debt Investment paragraph. DEBT INVESTMENTS We consider all highly liquid...
Need help in analysis the below Debt Investment paragraph. DEBT INVESTMENTS We consider all highly liquid debt investments with original maturities from the date of purchase of three months or less as cash equivalents. Cash equivalents can include investments such as corporate debt, financial institution instruments, government debt,and reverse repurchase agreements.Marketable debt investments are generally designated as trading assets when a market risk is economically hedged at inception with a related derivative instrument, or when the marketable debt investment itself...
The entire amount of impairment for an available-for-sale debt investment is recognized in earnings if fair...
The entire amount of impairment for an available-for-sale debt investment is recognized in earnings if fair value declines below amortized cost and: Multiple Choice The company has incurred non-credit losses. It is more likely than not that the investor will have to sell the investment before fair value recovers. The company has incurred credit losses. The impairment is viewed as temporary
Recording Impairment Loss on Asset Held for Sale Three cases are provided below concerning a plant...
Recording Impairment Loss on Asset Held for Sale Three cases are provided below concerning a plant asset currently held for sale. Accumulated Case Original Cost Depreciation Fair Value Selling Costs $192,000 $100,000 $90,000 $3,000 90,000 2,000 60,000 2,000 560,000 300,000 280,000 14,000 3 a. Which cases(s), if any, require an impairment loss to be recognized, and for what amount? Note: If the asset is not impaired, enter a zero (or leave blank) for the loss. Note: Do not add any...
At December 31, 2017, the available-for-sale debt portfolio for Skysong, Inc. is as follows. Unrealized Gain...
At December 31, 2017, the available-for-sale debt portfolio for Skysong, Inc. is as follows. Unrealized Gain (Loss) Security Cost Fair Value $27,000 25,200 45,900 $98,100 $(4,500) 2,700 4,500 $31,500 22,500 41,400 Total $95,400 Previous fair value adjustment balance-Dr. Fair value adjustment-Dr. 2,700 720 $1,980 On January 20, 2018, Skysong, Inc. sold security A for $27,180. The sale proceeds are net of brokerage fees. (a) Your answer is correct. Prepare the adjusting entry at December 31, 2017, to report the portfolio...
Fair Value Journal Entries, Available for Sale Investments The Investments of Steelers Inc. Indude a single...
Fair Value Journal Entries, Available for Sale Investments The Investments of Steelers Inc. Indude a single investment 5400,000 of Bengals Inc. 5 bonds purchased at 100 on January 1, 2017. These bonds were classified as available for sale securities. As of the December 31, 2017, balance sheet date, the fair value of the bonds declined to $392,800. a. Journalize the entries to acquire the investment on January 1, 2017, and record the adjustment to fair value on December 31, 2017....
At the end of 2018, Terry Company prepared the following schedule of investments in available-for-sale debt...
At the end of 2018, Terry Company prepared the following
schedule of investments in available-for-sale debt securities (all
of which were acquired at par value):
Company
Amortized Cost
12/31/18 Fair Value
Cumulative Change in Fair Value
Morgan Company
$35,000
$34,200
$(800)
Nance Company
60,000
63,200
3,200
Totals
$95,000
$97,400
$2,400
During 2019, the following transactions occurred:
July 1
Purchased Oscar Company debt securities with a par value of
100,000 for $97,000. The securities carry an annual interest rate
of 10%,...
Accounting for Debt Securities—Available-for-Sale Hilo Company had the following transactions and adjustments related to a bond...
Accounting for Debt Securities—Available-for-Sale Hilo Company had the following transactions and adjustments related to a bond investment: 2019 Jan. 1 Purchased $800,000 face value of Cynad, Inc.’s 9 percent bonds at 99 plus a brokerage commission of $1,400. The bonds pay interest on June 30 and December 31 and mature in 20 years. Hilo does not expect to sell the bonds in the near future, nor does it intend to hold the bonds to maturity. June 30 Received the semiannual...
Saved Help Save Carpark Services began operations in 20X1 and maintains long-term investments in available-for-sale debt...
Saved Help Save Carpark Services began operations in 20X1 and maintains long-term investments in available-for-sale debt securities. The year end cost and fair values for its portfolio of these debt securities follows. The year-end adjusting entry to record the unrealized gain/loss at December 31, 20X1is: Available-for-Sale Securities Cost Fair Value December 31, 20x1 $300,000 $281,000 December 31, 20x2 $380,000 $401,500 Multiple Choice Debit Unrealized Gain-Equity $19000 Credit Fair Value Adjustment - Available for Sale (LT) $19.000 Debit Unrealized Loss -...
Presented below are two independent cases related to
available-for-sale debt investments.
Case 1
Case 2
Amortized cost
$40,200
$93,300
Fair value
30,990
104,120
Expected credit losses
26,420
85,640
For each case, determine the amount of impairment loss, if any.
(If no loss, please enter 0. Do not leave any fields
blank.)
Case 1
Impairment Loss
$
Case 2
Impairment Loss
$
DIEU LACILISC 1 11 Presented below are two independent cases related to available-for-sale debt investments. Amortized cost Fair value Expected credit losses Case 1 $37,020 27,060 21,600 Case 2 $101,200 110,650 93,050 For each case, determine the amount of impairment loss, if any. (If no loss, please enter 0. Do not leave any fields blank.) Case 1 Impairment Loss Case 2 Impairment Loss
The entire amount of impairment for an available-for-sale debt investment is recognized in earnings if fair value declines below amortized cost and: Multiple Choice The company has incurred non-credit losses. It is more likely than not that the investor will have to sell the investment before fair value recovers. The company has incurred credit losses. The impairment is viewed as temporary
Recording Impairment Loss on Asset Held for Sale Three cases are provided below concerning a plant asset currently held for sale. Accumulated Case Original Cost Depreciation Fair Value Selling Costs $192,000 $100,000 $90,000 $3,000 90,000 2,000 60,000 2,000 560,000 300,000 280,000 14,000 3 a. Which cases(s), if any, require an impairment loss to be recognized, and for what amount? Note: If the asset is not impaired, enter a zero (or leave blank) for the loss. Note: Do not add any...
At December 31, 2017, the available-for-sale debt portfolio for Skysong, Inc. is as follows. Unrealized Gain (Loss) Security Cost Fair Value $27,000 25,200 45,900 $98,100 $(4,500) 2,700 4,500 $31,500 22,500 41,400 Total $95,400 Previous fair value adjustment balance-Dr. Fair value adjustment-Dr. 2,700 720 $1,980 On January 20, 2018, Skysong, Inc. sold security A for $27,180. The sale proceeds are net of brokerage fees. (a) Your answer is correct. Prepare the adjusting entry at December 31, 2017, to report the portfolio...
Fair Value Journal Entries, Available for Sale Investments The Investments of Steelers Inc. Indude a single investment 5400,000 of Bengals Inc. 5 bonds purchased at 100 on January 1, 2017. These bonds were classified as available for sale securities. As of the December 31, 2017, balance sheet date, the fair value of the bonds declined to $392,800. a. Journalize the entries to acquire the investment on January 1, 2017, and record the adjustment to fair value on December 31, 2017....
At the end of 2018, Terry Company prepared the following
schedule of investments in available-for-sale debt securities (all
of which were acquired at par value):
Company
Amortized Cost
12/31/18 Fair Value
Cumulative Change in Fair Value
Morgan Company
$35,000
$34,200
$(800)
Nance Company
60,000
63,200
3,200
Totals
$95,000
$97,400
$2,400
During 2019, the following transactions occurred:
July 1
Purchased Oscar Company debt securities with a par value of
100,000 for $97,000. The securities carry an annual interest rate
of 10%,...
Saved Help Save Carpark Services began operations in 20X1 and maintains long-term investments in available-for-sale debt securities. The year end cost and fair values for its portfolio of these debt securities follows. The year-end adjusting entry to record the unrealized gain/loss at December 31, 20X1is: Available-for-Sale Securities Cost Fair Value December 31, 20x1 $300,000 $281,000 December 31, 20x2 $380,000 $401,500 Multiple Choice Debit Unrealized Gain-Equity $19000 Credit Fair Value Adjustment - Available for Sale (LT) $19.000 Debit Unrealized Loss -...
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