Hayes Company purchased 10,000 ordinary shares of Kenyon Co., paying $26 per share plus $1,500 in broker fees. Hayes plans to actively trade this investment. Pre-pare the entry to record this investment.
Answer to relevant QuestionsHayes Company sold 10,000 shares of Kenyon Co. that it bought in question 14 for $27.50 per share, incurring $1,770 in brokerage commissions. The carrying value of the investment is $260,000. Prepare the entry to record the ...When is a debt investment considered impaired? Explain how to account for the impairment of a held-for-collection debt investment.Refer to the information in BE17-3. Assume that, to address a measurement mismatch, Carow elects the fair value option for this debt investment. Prepare the journal entry at year-end, assuming the fair value of the bonds is ...Player Corporation makes an equity investment costing $73,000 and classifies it as non-trading. At December 31, the fair value of the investment is $67,000.InstructionsPrepare the adjusting entry to report the investments ...Parnevik Company has the following investments in its investment portfolio on December 31, 2010 (all investments were purchased in 2010): (1) 3,000 ordinary shares of Anderson Co. which cost $58,500, (2) 10,000 ordinary ...
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