Close Icon
Info
Warning
Danger

Accounting Expert Answers & Study Resources : Page 730

The vast field of accounting contributes to one of the largest subjects in our study resources. Accounting flashcards, homework answers for textbooks & other learning aids can increase your competency in this domain instantly. Become a top student with our support. Search Now…

Ask an Expert

Our Experts can answer your tough homework and study questions.

Answers in as fast as 15 minutes
Post a Question
Subjects icon
150245 Materials
0 Students Benefited

Chapter 15:  Investments and Fair Value Accounting 113.  Skyline, Inc. purchased a portfolio of available-for-sale securities during the current fiscal year.  The cost and fairvalue of this portfolio on December 31, was as follows: Name Number of Shares Total Cost Total Fair Value Blackstone, Inc. 400 $ 4,000 $ 5,200 Flagler Company 200 3,000 2,700 Patterson Corporation 600 7,500 9,800 Total $14,500 $17,700 (a)  Provide the journal entry to.

Homework Answers
17 Views

Chapter 15:  Investments and Fair Value Accounting 65.Which of the following stock investments should be accounted for using the cost method? a.investments of less than 20% b.investments between 20% and 50% c.investments of less than 20% and investments between 20% and 50% d.all stock investments should be accounted for using the cost method 66.Jarvis Corporation makes.

Homework Answers
15 Views

Chapter 15:  Investments and Fair Value Accounting 55.Ruben Company purchased $100,000 of Evans Company bonds at 100 plus $1,500 in accrued interest.  The bondinterest rate is 8% and interest is paid semiannually.  The journal entry to record the purchase would be a.debit Investment—Evans Company Bonds, $101,500? credit Cash, $101,500 b.debit Investment—Evans Company Bonds,.

Homework Answers
15 Views

Chapter 15:  Investments and Fair Value Accounting 113.  Discuss the appropriate financial treatment when an investor has a greater than 50% ownership in anothercompany. 114.  On January 1, the Valuation Allowance for Trading Investments account has a zero balance.  On December 31,the cost of trading securities portfolio was $64,200, and the fair.

Homework Answers
13 Views

Chapter 15:  Investments and Fair Value Accounting 113.  Compare and contrast why companies invest cash in short-term temporary investments vs. long-term investments. 114.  Define debt securities and equity securities.  Include their similarities and differences in your discussion. 115.  On May 1, Knox Inc. purchases $100,000 of 10-year, 6% Madison Corporation bonds dated March.

Homework Answers
19 Views

112.Net income for the year was $45,500. Accounts receivable increased $5,500, and account payable increased by$11,200. Under the indirect method, the cash flow from operations is a. $51,200 b. $45,500 c. $62,200 d. $28,800 113.Rogers Company reported net income of $35,000 for the year.  During the year, accounts receivable increased by$7,000, accounts payable decreased by.

Homework Answers
16 Views

Chapter 15:  Investments and Fair Value Accounting 113.  Journalize the entries to record the following selected equity investment transactions completed by Flurry Companyduring the current year. Flurry’s purchase represents less than 20% of the total outstanding Braxter stock. February 2Purchased for cash 500 shares of Braxter Co. stock for $34 pershare plus.

Homework Answers
11 Views

129.  Identify which section the statement of cash flows (using the indirect method) would present information regardingthe following activities. (Use O for operating, I for investing, or F for financing). Issued common stock Redeemed bonds Issued preferred stock Purchased patents Net income Paid cash dividends Purchased treasury stock Sold long-term investment Sold equipment Purchased buildings Issued bonds 130.  For each of the.

Homework Answers
11 Views

Chapter 15:  Investments and Fair Value Accounting 113.  The cost and fair value of  the trading securities held by Lindy Company as of December 31 are as follows: ? ? Name ? Number of Shares ? Costper Share Fair Valueper Share ? Total Cost ? TotalFair Value Laurie, Inc. 1,200 $10.50 $11.05 Scott Corp. 600 9.00 9.85 Stephanie Company 900 4.10 4.00 Timmer Company 1,400 7.35 6.82 Total (a) Complete the table above to find the total cost and fair value.

Homework Answers
17 Views

Chapter 15:  Investments and Fair Value Accounting 113.  Prepare the journal entries for the following transactions for Morgan Co. (a)          Morgan Co. purchased 32,000 shares of the total of 100,000 outstanding shares of GordonCorp. stock for $10 per share plus a $400 commission. (b)         Gordon Corp.'s total earnings for the period are $80,000. (c)         .

Homework Answers
15 Views

72.Financing activities include a.lending money b.acquiring investments c.issuing debt d.acquiring long-lived assets 73.Depreciation on factory equipment would be reported in the statement of cash flows prepared by the indirectmethod in a.the cash flows from financing activities section b.the cash flows from investing activities section c.a separate schedule d.the cash flows from operating activities section 74.Which of the following should be.

Homework Answers
12 Views

Match each description below to the appropriate term (a-g). a.  contract rate b.  effective rate c.  bond discount d.  bond premium e.  bond f.   bond indenture g.  principal 158.  The face amount of each bond 159.  A form of an interest-bearing note 160.  The return required by the market on the day of issuance 161.  If the contract rate exceeds the.

Homework Answers
19 Views

Chapter 15:  Investments and Fair Value Accounting 113.  Albright Company purchased as a long-term investment $500,000 of Benton Corporation 10-year, 9%bonds.  Present entries to record the following selected transactions: (a)          Purchased bonds at 93 for $465,000. (b)         Sold half the bonds at 98 plus accrued interest of $4,000.  The broker deducted $200 forbrokerage.

Homework Answers
13 Views

129.  For each of the following, identify whether it would be disclosed as an operating (O), financing (F), or investing (I)activity on the statement of cash flows under the indirect method.     ____received dividends    ____paid of dividends     ____purchased of equipment    ____net income     ____issued company’s common stock     ____amortization expense 130.  Each of the.

Homework Answers
15 Views

Chapter 15:  Investments and Fair Value Accounting 75.Which of the following items would notaffect the investor's income for the period? a.interest received on a temporary investment in bonds b.dividends received on a long-term investment in stock where the investor owns 10% of the investee's stock c.dividends received on a long-term investment in stock where.

Homework Answers
13 Views

Chapter 15:  Investments and Fair Value Accounting 95.The account Unrealized Gain (Loss) on Available-for-Sale Investments should be included on the a.income statement as other revenue (expense) b.balance sheet as an adjustment to the asset account c.balance sheet as an adjustment to stockholders' equity d.statement of retained earnings 96.The account Unrealized Gain (Loss) on Trading Investments should.

Homework Answers
15 Views

Chapter 15:  Investments and Fair Value Accounting 113.  Journalize the entries to record the following selected bond investment transactions for Southwest Bank: (a)               Purchased $400,000 of Daytona Beach 5% bonds at 100 plus accruedinterest of $4,500. (b)               Received the first semiannual interest. (c)               Sold $250,000 of the bonds at 97, plus accrued interest of.

Homework Answers
15 Views

41.Cash inflows and outflows are notnetted in the investing or financing sections of the statement of cash flows butare separately disclosed to give the reader full information. a.True b.False 42.There is no difference in the investing and financing sections of the statement of cash flows using the indirect anddirect method. a.True b.False 43.Under the direct method.

Homework Answers
13 Views

62.The last item on the statement of cash flows prior to the schedule of noncash investing and financing activitiesreports a.the increase or decrease in cash b.cash at the end of the year c.net cash flow from investing activities d.net cash flow from financing activities 63.Which of the following is a noncash investing and financing activity? a.payment.

Homework Answers
12 Views

Chapter 15:  Investments and Fair Value Accounting Match each of the definitions that follow with the appropriate investment term (a–j). equity method parent company subsidiary company consolidated financial statements fair value unrealized gain or loss on investments. valuation allowance for investments dividend yield amortized cost cost method 114.  a corporation owning all or the majority of the voting stock of another corporation 115. .

Homework Answers
17 Views

158.  Using the following table, what is the present value of $15,000 to be received in 10 years, if the market rate is 5%compounded annually? Periods 5% 6% 7% 10% 1 0.95238 0.94340 0.93458 0.90909 2 0.90703 0.89000 0.87344 0.82645 3 0.86384 0.83962 0.81630 0.75132 4 0.82270 0.79209 0.76290 0.68301 5 0.78353 0.74726 0.71299 0.62092 6 0.74622 0.70496 0.66634 0.56447 7 0.71068 0.66506 0.62275 0.51316 8 0.67684 0.62741 0.58201 0.46651 9 0.64461 0.59190 0.54393 0.42410 10 0.61391 0.55840 0.50835 0.38554 159.  Using the following table, what is the present value of $40,000 to be received in 5 years, if the market rate is 7%compounded annually? Periods 5% 6% 7% 10% 1 0.95238 0.94340 0.93458 0.90909 2 0.90703 0.89000 0.87344 0.82645 3 0.86384 0.83962 0.81630 0.75132 4 0.82270 0.79209 0.76290 0.68301 5 0.78353 0.74726 0.71299 0.62092 6 0.74622 0.70496 0.66634 0.56447 7 0.71068 0.66506 0.62275 0.51316 8 0.67684 0.62741 0.58201 0.46651 9 0.64461 0.59190 0.54393 0.42410 10 0.61391 0.55840 0.50835 0.38554 .

Homework Answers
15 Views

Chapter 15:  Investments and Fair Value Accounting 105.All of the following are factors contributing to the trend for regulators to adopt accounting principles using fair valueconcepts except a.a greater percentage of total assets existing as receivables and securities b.pressure on regulators to adopt an international set of accounting principles and standards c.hybrid measurement methods.

Homework Answers
16 Views

Chapter 15:  Investments and Fair Value Accounting 1.Most companies invest excess cash in bonds as investments in order to profit long-term from the growth of theinvestment. a.True b.False 2.Although marketable securities may be retained for several years, they continue to be classified as temporary,provided they are readily marketable and can be sold for cash.

Homework Answers
26 Views

Chapter 15:  Investments and Fair Value Accounting 31.Trading securities are reported on the balance sheet at cost. a.True b.False 32.Any difference between the fair market values of the securities and their cost is a realized gain or loss. a.True b.False 33.Unrealized gains and losses on trading securities are notincluded in the calculation of income from operations. a.True b.False 34.Investments in.

Homework Answers
16 Views

82.The following information is available from the current period financial statements: Net income$175,000 Depreciation expense28,000 Increase in accounts receivable16,000 Decrease in accounts payable21,000 The net cash flow from operating activities using the indirect method is a. $166,000 b. $184,000 c. $110,000 d. $240,000 83.On the statement of cash flows, the cash flows from investing activities section would include a.receipts from the.

Homework Answers
18 Views

Chapter 15:  Investments and Fair Value Accounting 45.Temporary investments a.are reported as current assets b.include cash equivalents c.do not include equity securities d.all are correct 46.Which of the following is nota reason to invest excess cash in temporary investments? a.earn interest revenue b.influence the operations of another company c.receive dividends d.realize gains from the increase in market value of the.

Homework Answers
16 Views

52.Which of the following is notone of the four basic financial statements? a.balance sheet b.statement of cash flows c.statement of changes in financial position d.income statement 53.Which of the following can be found on the statement of cash flows? a.cash flows from operating activities b.total assets c.total changes in stockholders' equity d.changes in retained earnings 54.On the statement of cash.

Homework Answers
14 Views

129.  Indicate whether each of the following would be added to or deducted from net income in determining net cashflow from operating activities by the indirect method: (a)          Increase in prepaid expenses (b)         Amortization of patents (c)          Increase in salaries payable (d)         Gain on sale of fixed assets (e)          Decrease in accounts receivable (f)          Increase in.

Homework Answers
17 Views

Chapter 15:  Investments and Fair Value Accounting 113.  During the first year of operations, Makala Company purchased two available-for-sale investments as follows: Security Shares Purchased Cost Oceanna Company 700 $29,000 Rockledge, Inc. 1,900 41,000 Assume that as of December 31, the Oceanna Company stock had a market value of $49 per share andRockledge, Inc. stock had a market value of $20.

Homework Answers
13 Views

11.Cash flows from investing activities, as part of the statement of cash flows, would include any receipts from theissuance of bonds payable. a.True b.False 12.There are two alternatives to reporting cash flows from operating activities in the statement of cash flows: (1) thedirect method and (2) the indirect method. a.True b.False 13.The direct method of preparing.

Homework Answers
15 Views

Chapter 15:  Investments and Fair Value Accounting 11.An equity investment in less than 20% of another company’s stock is accounted for using the cost method. a.True b.False 12.Ordinarily, a corporation owning a significant portion of the voting stock of another corporation accounts for theinvestment using the equity method. a.True b.False 13.The investor carrying an investment by the.

Homework Answers
31 Views

Chapter 15:  Investments and Fair Value Accounting Match each of the definitions that follow with the appropriate investment term (a–j). debt securities equity securities investor investee cost method trading securities available-for-sale securities held-to-maturity securities equity method business combination 114.  debt and equity securities purchased and sold to earn short-term profits from changes in the market price 115.  preferred and common stock that represent.

Homework Answers
13 Views

Chapter 15:  Investments and Fair Value Accounting 21.The equity method is usually more appropriate for accounting for investments where the purchaser does nothavesignificant influence over the investee. a.True b.False 22.When bonds held as long-term investments are purchased at a price other than the face value, the premium ordiscount should be amortized over the remaining.

Homework Answers
15 Views

Chapter 15:  Investments and Fair Value Accounting 113.  Journalize the entries to record the following selected equity investment transactions completed by Perry Companyduring the current year.  Perry accounts for this investment using the cost method. February 2 Purchased for cash 900 shares of Dexter Co. stock for $54 pershare plus a $450 brokerage.

Homework Answers
14 Views

Can't find what you're looking for ?

Ask our exprts a study questions, on us.
Get free Homework Help*