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he investments of Charger Inc. include an investment of trading securities of Raiders Inc. purchased on February 24, 2017, for 280,000. The fair value of the securities on December 31, 20Y7, is $364,000. Journalia

he investments of Charger Inc. include an investment of trading securities of Raiders Inc. purchased on February 24, 2017, for 280,000. The fair value of the securities on December 31, 20Y7, is $364,000. Journalia

Financial Accounting
Financial Accounting
15th Edition
ISBN:9781337272124
Author:Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:Carl Warren, James M. Reeve, Jonathan Duchac
Chapter15: Investments And Fair Value Accounting
Section: Chapter Questions
Problem 2PB
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ournal entries for trading investments The investments of Charger Inc. include an investment of trading securities of Raiders Inc. purchased on February 24, 20Y7, for $280,000. The fair value of the securities on December 31, 20Y7, is $364,000. not require an entry, leave it blank. a. Journalize the entries for the February 24 purchase and the adjustment to fair value on December 31, 20Y7. If an amount box doe: 20Y7 Feb. 24 20Y7 Dec. 31 b. How is a unrealized gain or loss for trading investments reported on the financial statements? The unrealized gain or unrealized loss on trading investments is reported on the Unrealized losses would be determining net income.. + The unrealized gain on available-for-sale investments would be reported as Allowance for Available-for-Sale Investments would be report the fair value of $364,000 on the ST statements? c. If the Raiders Inc. securities had been classified as available-for-sale securities, how would the investment be reported on the financial F4 R F Q Search с F5 % 5 T G F6 6 Y H F7 10 00 & 7 U in determining net income, while unrealized gains would be FOFIN J F8 8 8 F9 K ( 9 8 . The debit balance of Valuation to the balance of the investments account of $280,000 to F10 O 0 L F11 (or a separate item if significant). P 0+ F12 PrtSc + 11 Insert } in 1 Show 7:50 A 1/31/202 Delete Backsp
Transcribed Image Text:ournal entries for trading investments The investments of Charger Inc. include an investment of trading securities of Raiders Inc. purchased on February 24, 20Y7, for $280,000. The fair value of the securities on December 31, 20Y7, is $364,000. not require an entry, leave it blank. a. Journalize the entries for the February 24 purchase and the adjustment to fair value on December 31, 20Y7. If an amount box doe: 20Y7 Feb. 24 20Y7 Dec. 31 b. How is a unrealized gain or loss for trading investments reported on the financial statements? The unrealized gain or unrealized loss on trading investments is reported on the Unrealized losses would be determining net income.. + The unrealized gain on available-for-sale investments would be reported as Allowance for Available-for-Sale Investments would be report the fair value of $364,000 on the ST statements? c. If the Raiders Inc. securities had been classified as available-for-sale securities, how would the investment be reported on the financial F4 R F Q Search с F5 % 5 T G F6 6 Y H F7 10 00 & 7 U in determining net income, while unrealized gains would be FOFIN J F8 8 8 F9 K ( 9 8 . The debit balance of Valuation to the balance of the investments account of $280,000 to F10 O 0 L F11 (or a separate item if significant). P 0+ F12 PrtSc + 11 Insert } in 1 Show 7:50 A 1/31/202 Delete Backsp
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