Cost and fair value data for the trading securities of Carson Company 1. Cost and fair value data for the trading securities of Carson Company at December 31, 2013, are $115,000 and $85,000, respectively. Which of the following correctly presents the adjusting journal entry to record the securities at fair value? a. Dec. 31 Unrealized Lossï‚¾Income 30,000 Trading Securities 30,000 b. Dec. 31 Unrealized Gainï‚¾Income 30,000 Trading Securities 30,000 c. Dec. 31 Unrealized Lossï‚¾Income 30,000 Fair Value Adjustmentï‚¾Trading 30,000 d. Dec. 31 Fair Value Adjustment -Trading 30,000 Unrealized Gain-Income 30,000 2. At December 31, 2013, the trading securities for Settle, Inc. are as follows: Security Cost Fair Value 12/31/13 X $90,000 $93,000 Y 150,000 141,000 Z 32,000 29,000 Settle should report the following amount related to the securities in its 2013 income statement: a. $3,000 gain b. $9,000 realized loss. c. $9,000 unrealized loss. d. $12,000 unrealized loss. 3. At December 31, 2013, Gammon Inc. has these data on its security investments: Security Cost Fair Value 12/31/13 Trading $ 140,000 $192,000 Non-trading 137,000 125,000 If the non-trading securities are held as long-term investments, which of the following will be recorded to adjust the securities to fair value? a. Securities 40,000 Unrealized Gainï‚¾Income 40,000 b. Unrealized Lossï‚¾Income 12,000 Securities 40,000 Unrealized Gainï‚¾Income 52,000 c. Fair Value Adjustmentï‚¾Trading 52,000 Unrealized Gainï‚¾Income 52,000 Unrealized Gain or Lossï‚¾Equity 12,000 Fair Value Adjustmentï‚¾Non-Trading 12,000 d. Unrealized Gainï‚¾Income 52,000 Fair Value Adjustmentï‚¾Trading 52,000 Fair Value Adjustmentï‚¾Non-Trading 12,000 Unrealized Gain or Lossï‚¾Equity 12,000 4. On September 19, 2013, Fowler Corporation invested $800,000 in common stock of Norton Industries as short-term trading securities. The fair value of this investment was $775,000 at December 31, 2013. In financial statements and records prepared on December 31, 2013, Fowler Corporation reports Stock Investments a. at $800,000 cost, with footnote disclosure of the fair value of $775,000. b. under current assets at $775,000 fair value in the balance sheet, and a $25,000 Unrealized Loss reported under Other Expenses and losses in the income statement. c. at $800,000 cost in the balance sheet, and a $25,000 debit to Fair Value Adjustmentâ€“Trading in the adjusting entry. d. at $800,000 cost, and a $25,000 Unrealized Loss included in the balance sheet as part of stockholdersâ€™ equity 5. On September 30, 2013, Fowler Corporation invested $800,000 in common stock of Mallard Industries as short-term non-trading securities. The market value of this investment was $830,000 at December 31, 2013, but had slipped to $825,000 by December 31, 2014. Assuming Fowler does not sell this investment and last adjusted the investment when preparing the financial statements on December 31, 2013, the adjustment necessary at December 31, 2014, includes a(an) a. $5,000 debit to Unrealized Gain or Loss-Equity. b. $25,000 credit to Unrealized Gain or Loss-Equity. c. $5,000 debit to Stock Investments. d. $825,000 debit to Fair Value Adjustment-Non-Trading Business Management Assignment Help, Business Management Homework help, Business Management Study Help, Business Management Course Help
We employ a number of measures to ensure top quality essays. The papers go through a system of quality control prior to delivery. We run plagiarism checks on each paper to ensure that they will be 100% plagiarism-free. So, only clean copies hit customers’ emails. We also never resell the papers completed by our writers. So, once it is checked using a plagiarism checker, the paper will be unique.
FALL 2018 HOMEWORK HELP| ASSIGNMENT HELP,…