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Intermediate Accounting Ii Week 7 Hw

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Submitted By sfarmer0190
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E 17-1 a.) 1.Trading d.) 2.Available-for-Sale b.) 2. Available-for-Sale e.) 3. Held-to-Maturity c.) 1.Trading f.) 2. Available-for-Sale
E 17-2
Held-to-Maturity Securities 300,000 Cash 300,000
Cash (10% x 300,000) 30,000 Interest Revenue 30,000
Cash 30,000 Interest Revenue 30,000
E 17-9
a.)Fair Value Adjustment 1,300 Unrealized Holding Gain or Loss 1,300
b.) Current Assets Available-for-Sale Securities 54,500
c.) Cash 15,000 Loss on Sale of Securities 2,500 Available-for-Sale Securities 17,500
E 17-12
Situation 1
Available-for-Sale Securities ($14x20,000) 280,000 Cash 280,000
Cash (.10x75,000) 7,500 Dividend Revenue 7,500
Securities Fair Value Adjustment 20,000 Unrealized Holding Gain or Loss ($15-$14x20,000) 20,000

Situation 2
Equity Investment ({30,000x$9}x.25) 67,500 Cash 67,500
Cash (36,000x.25) 9,000 Equity Investment 9,000
Equity Investment (.25x85,000) 21,250 Revenue from Investment 21,250
E 17-16
a.) Available-for-Sale Securities 1,250,000 Cash 1,250,000
Cash ($.80x50,000) 40,000 Dividend Revenue 40,000
Cash 40,000 Dividend Revenue 40,000
Fair Value Adjustment ({$27x50,000}-1,250,000) 100,000 Unrealized Holding Gain or Loss 100,000

b.) Available-for-Sale Securities 1,250,000 Cash 1,250,000
Cash 40,000 Equity Investments 40,000
Cash 40,000 Equity Investments 40,000
Equity Investment (.20x730,000) 146,000 Revenue from Investment 146,000

c.) Fair Value Method Equity Method
Investment Amount 1,350,000 1,316,000
Dividend Revenue 80,000 0
Revenue From Investment 0…...

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