Uttinger Company has the following data at December 31, 2020. The available-for-sale securities are held as a
Question:
The available-for-sale securities are held as a long-term investment.
Instructions
a. Prepare the adjusting entries to report each class of securities at fair value.
b. Indicate the statement presentation of each class of securities and the related unrealized gain (loss) accounts.
Transcribed Image Text:
Fair Value Securities Cost Trading $120,000 100,000 $126,000 96,000 Available-for-sale
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 77% (9 reviews)
a Fair Value Adjustment x Trading 126000 120000 6000 Unrealized Gain x In...View the full answer
Answered By
Amar Kumar Behera
I am an expert in science and technology. I provide dedicated guidance and help in understanding key concepts in various fields such as mechanical engineering, industrial engineering, electronics, computer science, physics and maths. I will help you clarify your doubts and explain ideas and concepts that are otherwise difficult to follow. I also provide proof reading services. I hold a number of degrees in engineering from top 10 universities of the US and Europe.
My experience spans 20 years in academia and industry. I have worked for top blue chip companies.
5.00+
1+ Reviews
10+ Question Solved
Related Book For
Accounting Principles
ISBN: 978-1119411482
13th edition
Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso
Question Posted:
Students also viewed these Business questions
-
Uttinger Company has the following data at December 31, 2014. The available-for-sale securities are held as a long-term investment. Instructions (a) Prepare the adjusting entries to report each class...
-
Uttinger Company has the following data at December 31, 2015. The available-for-sale securities are held as a long-term investment. Instructions (a) Prepare the adjusting entries to report each class...
-
Uttinger Company has the following data at December 31, 2017. The available-for-sale securities are held as a long-term investment. Instructions (a) Prepare the adjusting entries to report each class...
-
Parent Ltd owns 80% of Subsidiary Ltd. In the financial year ended 30 June 20X2, Subsidiary Ltd sold inventory to Parent Ltd. Details regarding the transaction are as follows: Cost to Subsidiary to...
-
Given the following information for Janicek Power Co., find the WACC. Assume the company's tax rate is 35 percent. Debt: 8,500 7.2 percent coupon bonds outstanding, $1,000 par value, 25 years to...
-
With regards to the Centralia illustrated mini case in the chapter, how would the APV change if: a. The forecast of d and/or f are incorrect? b. Deprecation cash flows are discounted at K ud...
-
A nozzle is designed to accelerate the fluid from \(V_{1}\) to \(V_{2}\) in a linear fashion. That is, \(V=a x+b\), where \(a\) and \(b\) are constants. If the flow is constant with \(V_{1}=10...
-
Refer to the data for Auto Lavage in Exercise 99. The actual operating results for October appear below: In Exercise 99, Auto Lavage is a Canadian company that owns and operates a large automatic...
-
Draw a distance versus time graph that corresponds to the walk described below. a) Jose starts 7 m away from the motion sensor and walks in a straight line toward the sensor at a constant rate of...
-
The Cheyenne Hotel in Big Sky, Montana, has accumulated records of the total electrical costs of the hotel and the number of occupancy-days over the last year. An occupancy-day represents a room...
-
Data for debt investments classified as trading securities are presented in E16.10. Assume instead that the investments are classified as available-for-sale debt securities. They have the same cost...
-
Jill Ernst is the controller of J-Products, Inc. At December 31, the end of its first year of operations, the companys investments in trading debt securities cost $74,000 and have a fair value of...
-
1. Calculate Karou's monthly car payment using your financial calculator. Compare the payment amount if she uses the 48-month car loan through her local bank versus her home equity line of credit....
-
Distinguish a geometric series and an infinite geometric series.
-
In how many ways could a club of 30 appoint a committee of 4 people?
-
Use a calculator to evaluate the present value of an annuity formula \[P=m\left[\frac{1-\left(1+\frac{r}{n}ight)^{-n t}}{\frac{r}{n}}ight]\] for the values of the variables \(m, r\), and \(t\)...
-
In Problems 23-34, find the value of each annuity at the end of the indicated number of years. Assume that the interest is compounded with the same frequency as the deposits. Amount of Deposit m 34....
-
Find the present value of the ordinary annuities in Problems 21-32. Amount of Deposit m 22. $500 Frequency annually Rate r 6% Time t 30 yr
-
An article in Advanced Semiconductor Manufacturing Conference (ASMC) (May 2004, pp. 32529) stated that dispatching rules and rework strategies are two major operational elements that impact...
-
If a process has a six-sigma capability, what is the process capability index? a. 1 b. 2 c. 6 d. 12
-
Suzaki Manufacturing Company is considering three new projects, each requiring an equipment investment of $22,000. Each project will last for 3 years and produce the following cash inflows. The...
-
Rondello Company is considering a capital investment of $150,000 in additional productive facilities. The new machinery is expected to have a useful life of 5 years with no salvage value ....
-
Omega Company is considering three capital expenditure projects. Relevant data for the projects are as follows. Annual income is constant over the life of the project. Each project is expected to...
-
On Monday, April 5, 2010, just before 3:00 in the afternoon, miners at Massey Energy Corporation's Upper Big Branch coal mine in southern West Virginia were in the process of a routine shift change....
-
Ethics in Human Resource Practices HR teams will play vital roles in organizations to ensure ethical behavior and compliance. To be effective, they must first place an emphasis on ethical behavior...
-
Why do managers struggle with ethics when it comes to making strategic management decisions for their organization?
Study smarter with the SolutionInn App