Question
PLEASE ANSWER ALL. A longterm investment in availablefor sale securities was acquired at a cost of $39,000. At yearend, the fair value of the securities
PLEASE ANSWER ALL.
A longterm investment in availablefor sale securities was acquired at a cost of $39,000. At yearend, the fair value of the securities is $45,450. The yearend adjusting entry requires a:
A.)credit to Investment in Available forSale Securities for $6450.
B.)debit to Unrealized Loss on Investment in
AvailableforSale securities for $6450
C.)credit to Allowance to Adjust Investment in
AvailableforSale Securities to Market for $6450.
D.)debit to Allowance to Adjust Investment in
AvailableforSale Securities to Market for $6450.
Daniel Company purchased 34% of the outstanding shares of Clooney Corporation on January 1 at a cost of $620,000. Clooney Corporation reported net income of $93,000 and declared and paid total dividends of $20,000 for the year. At the end of the year, Clooney shares had a current fair value of $614,000. After all necessary adjusting entries are made for the year, the balance in Daniel Company's
Equitymethod Investment account will be:
A.)$644,820 B.)$693,000 C.)614,000 D.)$687,000
Pansee Company had the following transactions pertaining to stock investments:
a. February 1: Purchased 2900 shares of Hudson Company (10% ownership) at the market price of $22 per share. Pansee Company intends to keep the stock for more than one year and classifies the stock as
availableforsale.
b. June 1: Received cash dividends of $4,000 on Hudson Company stock.
c. June 30: End of accounting period. Fair value of Hudson Company stock is $62,800. The company uses an allowance account to adjust the investment.
Which journal entry is prepared on June 30?
A.)debit Unrealized Loss on Investment in
AvailableforSale Securities for $1000 and credit Investment in AvailableforSale Securities for $1000
B.)debit Investment in AvailableforSale Securities for $1000 and credit Unrealized Gain on Investment in
AvailableforSale Securities for $1000
C.)debit Unrealized Loss on Investment in
Availablefor Sale Securities for $1000 and credit Allowance to Adjust Investment in AvailableforSale Securities to Market for $1000
D.)debit Allo
On January 1, 2018, Winston Company purchased 5% bonds with a face value of $60,000 for par. Winston Company intends to hold the bonds until maturity. Interest is payable semiannually on July 1 and January 1. The company's fiscal year ends on December 31. The company uses the
straightline amortization method for discounts and premiums. The journal entry on December 31, 2018 is:
A,)debit Cash for $1500 and credit Interest Revenue for $1500.
B.)debit Interest Receivable for $1500 and credit
HeldtoMaturity Investment in Bonds $1500.
C.)debit Interest Receivable for $3000 and credit
HeldtoMaturity Investment in Bonds $3000.
D.)debit Interest Receivable for $1500 and credit Interest Revenue for $1500.
wance to Adjust Investment in
AvailableforSale Securities to Market for $1000 and credit Unrealized Loss on Investment in AvailableforSale Securities for $1000
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