On its December 31, 2017 balance sheet, Calhoun Company appropriately reported a $10,000 credit balance in...
On its December 31, 2017 balance sheet, Calhoun Company appropriately reported a $10,000 credit balance in its Fair Value Adjustment (available-for-sale) account. There was no change during 2018 in the composition of Calhoun’s portfolio of debt investments held as available-for-sale securities. The following information pertains to that portfolio:
Security Cost Fair value at 12/31/18
X $125,000 $160,000
Y 100,000 85,000
Z 175,000 125,000
$400,000 $370,000
The amount of unrealized loss to appear as a component of comprehensive income for the year ending December 31, 2018 is
Select one:
a. $0
b. $20,000
c. $30,000
d. $40,000
Homework Answers
Unrealized loss = (cost - fair value) + credit balance
= ($400,000 - $370,000) + $10,000
= $40,000
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At December 31, 2017, the available-for-sale debt portfolio for Shamrock, Inc. is as follows. Security Cost...
At December 31, 2017, the available-for-sale debt portfolio for
Shamrock, Inc. is as follows.
Security
Cost
Fair Value
Unrealized
Gain (Loss)
A
$21,875
$18,750
$(3,125
)
B
15,625
17,500
1,875
C
28,750
31,875
3,125
Total
$66,250
$68,125
1,875
Previous fair value adjustment balance—Dr.
500
Fair value adjustment—Dr.
$1,375
On January 20, 2018, Shamrock, Inc. sold security A for $18,875.
The sale proceeds are net of brokerage fees.
Show the balance sheet presentation of the investment-related
accounts at December 31, 2017
Exercise 17-9 At December 31, 2017, the available-for-sale debt portfolio for Cheyenne, Inc. is as follows....
Exercise 17-9 At December 31, 2017, the available-for-sale debt portfolio for Cheyenne, Inc. is as follows. Unrealized Gain (Loss) Security Cost Fair Value $21,000 15,000 27,600 $63,600 $18,000 16,800 30,600 $65,400 $(3,000) 1,800 3,000 1,800 480 $1,320 8 Total Previous fair value adjustment balance-Dr Fair value adjustment-Dr On January 20, 2018, Cheyenne, Inc. sold security A for $18,120. The sale proceeds are net of brokerage fees
Multiple Choice Question 89 On its December 31, 2017 balance sheet, Cullumber Company appropriately reported a $10,000 debit balance in its Fair Value Adjustment account. There was no change during 2018 in the composition of Cumber's portfolio of debt investments held as available for sale debt securities. The following information pertains to that portfolio: Security Cost Fair value at 12/31/18 $105000 $97000 78000 79000 81000 142000 $317000 $265000 What amount of unrealized loss on these debt securities should be included...
At December 31, 2017, the available-for-sale debt portfolio for Whispering, Inc. is as follows: Unrealized Gain (Loss) Security Cost Fair Value $44,625 $38,250 31,875 35,700 58,650 65,025 Total $135,150 $138,975 Previous fair value adjustment balance-Dr. Fair value adjustment-Dr. $(6,375 ) 3,825 6,375 3,825 1,020 $2,805 On January 20, 2018, Whispering, Inc. sold security A for $38,505. The sale proceeds are net of brokerage fees. Whispering Inc. reports net income in 2017 of $306,000 and in 2018 of $357,000. Unrealized holding...
E17-9 (L01) (Available-for-Sale Debt Securities Entries and Financial Statement Presentation) At December 31, 2017, the available-for-sale debt portfolio for Steffi Graf, Inc. is as follows. Security Cost Fair Value Unrealized Gain (Loss) $17,500 $15,000 152,500) 12,500 14,000 1,500 23,000 25,500 2,500 Total $53,000 $54,500 Previous fair value adjustment balance-Dr. Fair value adjustment--Dr. On January 20, 2018, Steffi Graf, Inc. sold security A for $15,100. The sale proceeds are not of brokerage fees Instructions (a) Prepare the adjusting entry at December...
Exercise 17-10 (Part Level Submission) At December 31, 2017, the available for sale debt portfolio for Pina, Inc. is as follows. Security Cost Fair Value $210,875 $180,750 150,625 168,700 277.150 307,275 $638,650 $656,725 Previous fair value adjustment balance-Dr. Fair value adjustment-Dr. Unrealized Gain (Loss) $(30,125 ) 18,075 30,125 18,075 INNI On January 20, 2018, Pina, Inc. sold security A for $181.955. The sale proceeds are net of brokerage fees PinaInc. reports net income in 2017 of $1,446,000 and in 2018...
Exercise 17-9 (Part Level Submission) At December 31, 2017, the available-for-sale debt portfolio for Blossom, Inc. is as follows. Security Cost Fair Value $24,500 $21,000 B 17,500 19,600 32,200 35,700 Total $74,200 $76,300 Previous fair value adjustment balance-Dr. Fair value adjustment-Dr. Unrealized Gain (Loss) $(3,500) 2,100 3,500 2,100 560 $1,540 On January 20, 2018, Blossom, Inc. sold security A for $21,140. The sale proceeds are net of brokerage fees. (b) Show the balance sheet presentation of the investment-related accounts at...
At December 31, 2017, the available-for-sale debt portfolio for
Shamrock, Inc. is as follows.
Security
Cost
Fair Value
Unrealized
Gain (Loss)
A
$21,875
$18,750
$(3,125
)
B
15,625
17,500
1,875
C
28,750
31,875
3,125
Total
$66,250
$68,125
1,875
Previous fair value adjustment balance—Dr.
500
Fair value adjustment—Dr.
$1,375
On January 20, 2018, Shamrock, Inc. sold security A for $18,875.
The sale proceeds are net of brokerage fees.
Show the balance sheet presentation of the investment-related
accounts at December 31, 2017
Exercise 17-9 At December 31, 2017, the available-for-sale debt portfolio for Cheyenne, Inc. is as follows. Unrealized Gain (Loss) Security Cost Fair Value $21,000 15,000 27,600 $63,600 $18,000 16,800 30,600 $65,400 $(3,000) 1,800 3,000 1,800 480 $1,320 8 Total Previous fair value adjustment balance-Dr Fair value adjustment-Dr On January 20, 2018, Cheyenne, Inc. sold security A for $18,120. The sale proceeds are net of brokerage fees
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