FREE Trial
Answered step by step
Verified Expert Solution
Link Copied!
Question
1 Approved Answer

Kitty Company began operations in the current year and acquired short-term debt investments in trading securities. The year-end cost and fair values for its

Kitty Company began operations in the current year and acquired short-term debt investments in trading

Kitty Company began operations in the current year and acquired short-term debt investments in trading securities. The year-end cost and fair values for its portfolio of these debt investments follow. Trading Securities Tesla Bonds Nike Bonds Ford Bonds Cost $ 12,300 20,400 5,100 Fair Value $ 9,225 21,420 4,080 Prepare the journal entry to record the December 31 year-end fair value adjustment for these debt securities.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

To record the yearend fair value adjustment for the trading securities you should adjust the investm... blur-text-image
Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Fundamental Accounting Principles
Fundamental Accounting Principles

Authors: John J Wild, Ken Shaw

25th Edition

1260247988, 978-1260247985

More Books

Students explore these related Accounting questions

Question

1. Let X be the subspace of R3 spanned by the vectors (1,-1,0) and (1,1,1). The subspace X is a plane in R; find a Cartesian equation of this plane. Hence, or otherwise, find a basis of X+..

Answered: 3 weeks ago

Question

Kitty Company began operations in the current year and acquired short-term debt investments in trading securities. The year-end cost and fair values for its portfolio of these debt investments...

Answered: 3 weeks ago

Question

Refer to the information in QS 15-4. (1) After the fair value adjustment is made, prepare the assets section of Kitty Companys December 31 classified balance sheet. (2) In which income statement...

Answered: 3 weeks ago

Question

Consider a spherical fluid particle in an inviscid fluid (no shear stresses). If pressure and gravitational forces are the only forces acting on the particle, can they cause the particle to rotate?...

Answered: 3 weeks ago

Question

Repeat Prob. 7.9, considering a point on the airfoil surface where the pressure is 0.3 atm.

Answered: 3 weeks ago

Question

=+3 Explain how Caltex did not achieve its target market share in the total petroleum market but still exceeded its financial targets. Is market share of overall petroleum market the correct measure...

Answered: 3 weeks ago

Question

An airline estimates that 3% of the persons who book a seat to travel do not show up. On that basis, suppose that the company makes 350 reservations for an aircraft capacity of 340 seats. What is the...

Answered: 3 weeks ago

Question

The following selected transactions were taken from the records of Shipway Company for the first year of its operations ending December 31, 2014: Apr. 13. Wrote off account of Dean Sheppard, $8,450....

Answered: 3 weeks ago

Question

Encouraging liabilities is a business - related consequence of failed software. Group startsTrue or False

Answered: 3 weeks ago

Question

2. Firm ABC has based on nominal interest rate to compute and pay the interest payment because of its debt amount. Moreover, the firm has purchased an asset and use the Double Declining Balance Model...

Answered: 3 weeks ago

Question

Problem 7 Half of a circular loop (area vector out of the page) of radius r=1.2m is inside a region (dotted area in the picture) with a homogeneous magnetic field B of 2T pointing into the page. The...

Answered: 3 weeks ago

Question

Can someone please help me with this, the lab seems easy but I keep messing it up, if you could help I would appreciate it, please You can even make numbers as long as it follows the lab, I just keep...

Answered: 3 weeks ago

Question

Suzanne owns a small restaurant. Robert, the restaurant's chef, is an excellent cook, but he is very temperamental; he becomes angry and abusive with the other kitchen staff and waiters over the...

Answered: 3 weeks ago

Question

The basic cycle for a steam power plant is shown inFig. 8.1. The turbine operates adiabatically with inlet steam at 6800 kPa and 550C, and the exhaust steam enters the condenser at 50C with a quality...

Answered: 3 weeks ago

Question

Refer to the graph below for the attached questions. (12 points; 3 points each). (1) Moving from Point A to Point B, what is the point price elasticity of demand? What is the dollar change in total...

Answered: 3 weeks ago

Question

The BODYFAT dataset was developed using randomly selected patients who were treated by a particular sports injury rehabilitation group. The purpose was to determine if girth (in centimeters) could be...

Answered: 3 weeks ago

Question

Skysong, Inc. had the following transactions involving current assets and current liabilities during February 2019. Feb. 3 Collected accounts receivable of $18,900. 7 Purchased equipment for $36,800...

Answered: 3 weeks ago

Question

What are the three kinds of research types? Explain each type.

Answered: 3 weeks ago

Question

Journ Co. purchased short-term investments in available-for-sale debt securities at a cost of $50,000 cash on November 25. At December 31, these securities had a fair value of $47,000. This is the...

Answered: 3 weeks ago

Question

Key figures for Apple and Google follow. Required 1. Compute times interest earned for the three years data shown for each company. 2. In the current year, and using times interest earned, which...

Answered: 3 weeks ago

Question

Compute the missing amounts a through j for the contribution margin income statements below. Company A Company B Number of units sold.... 1,975 Total Per unit Total Per unit Sales .. Variable...

Answered: 3 weeks ago

Question

LaCrosse Technology is one of many manufacturers of atomic clocks. It makes an atomic digital watch that is radio-controlled and that maintains its accuracy by reading a radio signal from a WWVB...

Answered: 3 weeks ago

Question

For the following normal distributions with parameters as specified, calculate the required probabilities: a. m 5, s 2; calculate P(0 x 8). b. m 5, s 4; calculate P(0 x 8). c. m 3, s 2;...

Answered: 3 weeks ago

Question

Canine Crunchies Inc. (CCI) sells large bags of dog food to warehouse clubs. CCI uses an automatic filling process to fill the bags. Weights of the filled bags are approximately normally distributed...

Answered: 3 weeks ago

Previous Question Next Question