Question
Use the following data for problems #17-18: Fair Value Accounting Investments: Use the following information for Problems #17 - #18 On September 30, 2011 Consolidated
Use the following data for problems #17-18:
Fair Value Accounting Investments: Use the following information for Problems #17 - #18
On September 30, 2011 Consolidated Holdings Corporation has the following portfolio of securities (Note Consolidated Ownership share in each company is 15%).
| Securities | Cost | Fair Value | Unrealized Gain/(Loss) |
| Horace Inc. Common (,5000 shares) | $110,000 | $95,000 | ($15,000) |
| Monroe Inc. Preferred (4,000 shares) | $120,000 | $132,000 | $12,000 |
| Oakvale Inc. Common (4,000 shares) | $160,000 | $146,000 | ($14,000) |
| Total of Portfolio: | $390,000 | $373,000 | ($17,000) |
| Previous Fair Value Adjustment: |
| ($5,000) | |
|
|
|
| |
Problem #17: Record the journal entry for the fair value adjustment on September 30, 2011
Problem #18: On Oct. 15, 2012, the Horace shares were sold at a price of $40 per share. In addition, 3,000 shares of Paris Inc. common stock were acquired at $75 per share (this represents 15% ownership of Paris):
a] Record the journal entries to record the sale of the Horace Shares
b] Record the journal entry for purchase of the Paris shares
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International Accounting Standards Regulations Financial Reporting
Authors: Greg N. Gregoriou, Mohamed Gaber
1st Edition
0750669837, 978-0750669832
