Prepare the journal entry to record this transaction

Assignment Help Accounting Basics
Reference no: EM133060698

Question - At December 31, 2021, the trading investments for Splish Brothers Inc., are as follows:

Security

Investment Category

Carrying Value

Fair Value

Co. A common shares

FVTPL

$16,500

$14,400

Co. B preferred shares

FVTPL

11,300

12,500

Co. C common shares

FVTOCI

20,500

17,100

Totals

 

$48,300

$44,000

Required -

1. Prepare the adjusting entries required at December 31 to report the above investments at fair value.

2. Show the financial statement presentation of the investments and the holding gains and losses that result from fair value adjustments at December 31, 2021. (Ignore income tax.)

3. Assuming that on March 20, 2022, Splish Brothers sold Co. B preferred shares for $12,200, prepare the journal entry to record this transaction.

Reference no: EM133060698

Questions Cloud

Respect to hedging-risk management : Which of the following statements is incorrect with respect to hedging/risk management?
How ethics might interpret a situation in your country : How ethics might interpret a situation in your country and compare it to how it might happen in Australia? If you are Australian then compare to a country you
Determine the basic earnings per share for PickApart Arts : PickApart Arts, Inc., had earnings of $382,800 for the year. Determine the basic earnings per share for PickApart Arts for the year
Find the amount of additional life insurance needed : Annie and Harry are doing a life insurance needs analysis, and have gathered the following information:
Prepare the journal entry to record this transaction : Assuming that on March 20, 2022, Splish Brothers sold Co. B preferred shares for $12,200, prepare the journal entry to record this transaction
Find annualized return of asset b : Find annualized return of Asset B
Us health care history and foundations : You will need to display a thorough understanding of the framework for and dates of events regarding health care in the United States,
What is the wacc : A firm raises $23,000 of total financing, of which Equity is $13,500 and the rest is Debt. The rate of return to investors for Equity is 9% and for debt is 5%.
Policy to meet marty needs and budget : Marty would like disability insurance to protect his income in case he is unable to work. Marty is the sole income earner for his family and while he has short

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd