please answer from M13 -1 to

M13 -10

please answer from M13-1 to M13-10

financial instrument, p. 13-37 CICLE SW... 13-37 notional, p. 13-37 MULTIPLE-CHOICE (AICPA ADAPTED) Select the best answer for each of the following. M13-1 On January 1, 2019, Weaver Company purchased as LO 13.2 held-to-maturity debt securities $500,000 face value of Park Corporation's 8% bonds for $456,200. The bonds were purchased to yield 10% interest and pay interest annually. The bonds mature on January 1, 2024. Weaver uses the effective interest method of amortization. What amount should Weaver report on its December 31, 2019, balance sheet as an investment in held-to-maturity debt securities? a. $450,580 c. $461,820 b. $456,200 d. $466,200 M13-2 During 2021, Anthony Company purchased debt 10 13.3 securities as a long-term investment and classified them as trading. All securities were purchased at par value. Pertinent data are as follows: Market Value at Security Cost 12/31/2021 $ 20,000 $ 18,000 40,000 30,000 90,000 93,000 Totals $150,000 $141,000 The net holding gain or loss included in Antho- ny's income statement for the year should be: a. $0 c. $9,000 loss b. $3,000 gain d . S12,000 loss M13-3 On July 1, 2019, Aldrich Company purchased LO 13.4 as an available for sale security $200,000 face value, 9% U.S. Treasury notes for S194,000. The notes mature July 1, 2020, and pay interest semiannually on January 1 and July 1. The notes were sold on December 1, 2019, for $199,000. Aldrich normally uses straight-line amortization on all of its notes. In its income statement for the year ended December 31, 2019, what amount should Aldrich report as a gain on the sale of the available-for-sale security? c. $5,000 b. S3,500 d. $6,000 M13-4 In 2021, Cromwell Corporation purchased bonds LO 13.4 of Oliver Company at par for $300,000 and clas- sified the investment as available for sale. In 2022, the market value declined to $200,000. In 2023, the market value of the investment rose a. $2,500 13.48 Chapter 13 Investments and Long-Term Receivables what amount of loss on these securities she included in Fay's income statement for ended December 31, 2019 Stics should be ent for the ye a. So c. $2,000 b. $1.500 d. $3,500 loc, bought 30% of of Bracero Corpo to $230,000, and the investment was sold. How much should Cromwell record as a realized gain or loss in its determination of net income for 2023? a. So c. $70,000 loss b. $30,000 gain d. $100,000 loss M13-5 When the market value of a company's portfo LO 13.4 lio of available for sale securities is lower than its cost, the difference should be: a. accounted for as a valuation allowance deducted from the asset to which it relates b. accounted for as an addition in the shareholders' equity section of the balance sheet c. accounted for as a liability d. disclosed and described in a note to the financial statements but not accounted for M13-6 A security in a portfolio of available for sale secu- LO 13.5 rities is transferred to the trading category. The security should be transferred between the corre- sponding portfolios at: a book value at date of transfer if higher than the fair value at date of transfer b. fair value at date of transfer, regardless of its cost C. cost, regardless of the fair value at date of transfer d. lower of its cost or fair value at date of transfer M13-8 On January 2, 2019, Portela Inc, bouche LO 13,7 the outstanding common stock of Bracar ration for S258,000 cash. Portela accounts for investment by the equity method. At the acquisition of the stock, Bracero's property, and cauipment had a fair value in excess of its value of $150,000. Bracero's property, plant, equipment has a remaining life of 10 years. Be cero's net income for the year ended December 31, 2019, was $180,000. During 2019, Bracer declared and paid cash dividends of S20,000.00 December 31, 2019, Portela should have carried its investment in Bracero in the amount of a. $258,000 CS306,000 *b. $301,500 d. S312,000 M13.9 Cash dividends declared out of current earnings were LO 13.6 distributed to an investor. How will the investor's LO 13.7 investment account be affected by those dividends under each of the following accounting methods Fair Value Equity Method a. Decrease No effect b. No effect Decrease C. Decrease Decrease d. No effect No effect M13.7 On its December 31, 2018, balance sheet, Fay LO 13.6 Company reported equity investments at a market value of $183,000. There was no change during 2019 in the composition of Fay's portfolio of marketable equity securities. Pertinent data are as follows: Market Value Market Value Security Cost at 12/31/2018 at 12/31/2019 A $ 60,000 $ 62,000 $ 63,000 B 45,000 42.000 40.000 C 80,000 79.000 78,500 Totals $185,000 $183,000 $181,500 M13-10 On January 1, 2019, Park Company accepted a LO 13.9 $36,000, non interest-bearing, 3-year note from i major customer in exchange for used equipment The equipment had originally cost Park S200,000 and had a book value of $20,000 on the date of the sale. At the 12% imputed interest rate for this type of loan, the present value of the note is $25,500 on January 1, 2019. Park uses the effective interest rate. What is the carrying value of the note receive able on Park's December 31, 2019, balance sheet a. $28,560 c. $32,500 b. $29,000 d. S36,000 REVIEW EXERCISES RE13-1 On January 1, 2019, Gatrong Corporation purchased 12%, 5-year Fleming Corporation bonds with a la LO 13.2 of $200,000. It expects to hold these bonds until maturity. The bonds pay interest semiannually on June December 31. Gatrong paid $215,443, a price that yields a 10% effective annual interest rate. Prepare the entry of Gatrong to record the purchase of the bonds. with a face value willy on June 30 and epare the journal