Gayton Corporation purchased 1000 shares of Smart common stock ($50 par) at $80 per share as a short-term investment. The shares were subsequently sold at $78 per share. The cost of the securities purchased and gain or loss on the sale were $\begin{array} { l l l } & \underline{ \text { Cost } }&& \underline{\text { Gain or Loss }} \\\end{array}$ A)$\begin{array} { l l l } & \$ 50,000 & \$ 2,000 \text { gain } \\\end{array}$ B)$\begin{array} { l l l } & \$ 50,000 & \$ 2,000 \text { loss } \\\end{array}$ C)$\begin{array} { l l l } & \$ 80,000 & \$ 2,000 \text { gain } \\\end{array}$ D)$\begin{array} { l l l } & \$ 80,000 & \$ 2,000 \text { loss } \end{array}$

The answer of Gayton Corporation purchased 1000 shares of Smart...

Beak Corporation sells 200 shares of common stock being held as an investment. The shares were acquired six months ago at a cost of $25 a share. Beak sold the shares for $40 a share. The entry to record the sale is a. $\begin{array}{llr} \text { Cash } &5,000\\ \text { Loss on Sale of Stock Investments} &3,000\\ \text { Stock Investments } &&8,000 \end{array}$ b. $\begin{array}{llr} \text {Stock Investments } &8,000\\ \text { Cash } &&8,000\\ \end{array}$ c. $\begin{array}{llr} \text {Cash } &8,000\\ \text { Loss on Sale of Stock Investments } &&3,000\\ \text { Stock Investments } &&5,000 \end{array}$ d. $\begin{array}{llr} \text { Cash } &8,000\\ \text { Stock Investments } &&8,000\\ \end{array}$

The answer of Beak Corporation sells 200 shares of common...

Brandy Corporation's trading portfolio at the end of the year is as follows: $\begin{array}{lrr} \underline{\text { Security}}&\underline{\text { Cost}}&\underline{\text { Fair Value}}\\ \text { Common Stock C } & \$ 10,000 & \$ 12,000 \\ \text { Common Stock D } & \underline{8,000} & \underline{5,000}\\ &\underline{\$18,000}&\underline{\$17,000} \end{array}$ Brandy subsequently sells Stock D for $10000. What entry is made to record the sale? a. $\begin{array}{llr} \text {Cash. } &10,000\\ \text { Stock Investments.} &&10,000\\ \end{array}$ b. $\begin{array}{llr} \text { Cash.} &10,000\\ \text { Fair Value Adjustment-Trading } &&2,000\\ \text {Stock Investments. } &&8,000 \end{array}$ c. $\begin{array}{llr} \text {Cash. } &10,000\\ \text { Stock Investments. } &&8,000\\ \text { Gain on Sale of Stock Investments } &&2,000 \end{array}$ d. $\begin{array}{llr} \text { Cash.} &10,000\\ \text { Stock Investments. } &&5,000\\ \text {Gain on Sale of Stock Investments } &&5,000 \end{array}$

The answer of Brandy Corporation's trading portfolio at the end...

Exam 16: Investments

Jenner Company had the following transactions pertaining to its short-term stock investments. Jan. 1 Purchased 600 shares of Pork Company stock for $8420. June 1 Received cash dividends of $0.60 per share on the Pork Company stock. Sept. 15 Sold 300 shares of the Pork Company stock for $3400 Cash. Instructions Journalize the transactions.

(Essay)

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Question 61

Stocks traded on the New York Stock Exchange are considered readily marketable.

(True/False)

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Question 62

Pension funds and mutual funds regularly invest in debt and stock securities to

(Multiple Choice)

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Question 63

A company that owns more than 50% of the common stock of another company is known as the

(Multiple Choice)

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Question 64

Under IFRS Equity investments are generally recorded and reported at

(Multiple Choice)

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Question 65

Gayton Corporation purchased 1000 shares of Smart common stock ($50 par) at $80 per share as a short-term investment. The shares were subsequently sold at $78 per share. The cost of the securities purchased and gain or loss on the sale were A) \ 50,000 \ 2,000 gain B) \ 50,000 \ 2,000 loss C) \ 80,000 \ 2,000 gain D) \ 80,000 \ 2,000 loss

(Short Answer)

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Question 66

Bay Company acquires 60 8% 5 year $1000 Community bonds on January 1 2017 for $60000. If Bay sells all of its Community bonds for $64500 what gain or loss is recognized?

(Multiple Choice)

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Question 67

Short-term investments are securities that are readily marketable and intended to be converted into cash within the next

(Multiple Choice)

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Question 68

In recognizing a decline in the fair value of short-term stock investments an unrealized loss account is debited because

(Multiple Choice)

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Question 69

Blaine Company had these transactions pertaining to stock investments: Feb. 1 Purchased 2,000 shares of Horton Company (10%) for $51,000 cash. June 1 Received cash dividends of $3 per share on Horton stock. Oct. 1 Sold 1,200 shares of Horton stock for $32,400. The entry to record the receipt of the dividends on June 1 would include a

(Multiple Choice)

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Question 70

An unrealized loss account on available-for-sale securities is

(Multiple Choice)

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Question 71

Short-term investments are securities that are _ and __ to be converted into cash within the next year.

(Short Answer)

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Question 72

Beak Corporation sells 200 shares of common stock being held as an investment. The shares were acquired six months ago at a cost of $25 a share. Beak sold the shares for $40 a share. The entry to record the sale is a. Cash 5,000 Loss on Sale of Stock Investments 3,000 Stock Investments 8,000 b. Stock Investments 8,000 Cash 8,000 c. Cash 8,000 Loss on Sale of Stock Investments 3,000 Stock Investments 5,000 d. Cash 8,000 Stock Investments 8,000

(Short Answer)

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Question 73

On January 1 2017 Grgante Corporation purchased 25% of the common stock outstanding of Sheat Corporation for $270000. During 2017 Long Corporation reported net income of $80000 and paid cash dividends of $40000. The balance of the Stock Investments-Long account on the books of Grgante Corporation at December 31 2017 is

(Multiple Choice)

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Question 74

Brandy Corporation's trading portfolio at the end of the year is as follows: Common Stock C \ 10,000 \ 12,000 Common Stock D Brandy subsequently sells Stock D for $10000. What entry is made to record the sale? a. Cash. 10,000 Stock Investments. 10,000 b. Cash. 10,000 Fair Value Adjustment-Trading 2,000 Stock Investments. 8,000 c. Cash. 10,000 Stock Investments. 8,000 Gain on Sale of Stock Investments 2,000 d. Cash. 10,000 Stock Investments. 5,000 Gain on Sale of Stock Investments 5,000

(Short Answer)

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Question 75

Which of the following reasons best explains why a company that experiences seasonal fluctuations in sales may purchase investments in debt or stock securities?

(Multiple Choice)

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Question 76

Plotner Corporation has the following trading portfolio of stock investments as of December 31 2017. \ 19,000 \ 15,000 22,000 27,000 On January 22 2018 Plotner Corporation sold security C for $32000. Instructions (a) Prepare the adjusting entry for Plotner Corporation on December 31 2017 to report the portfolio at fair value. (b) Indicate the balance sheet and income statement presentation of the fair value data for Plotner Corporation at December 31 2017. (c) Prepare the journal entry for the 2018 sale.

(Essay)

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Question 77

The balance sheet presentation of an unrealized loss on an available-for-sale security is similar to the statement presentation of

(Multiple Choice)

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Question 78

In accounting for debt investments entries are made for each of the following except the

(Multiple Choice)

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Question 79

Fair Value Adjustment is a valuation _ account which is _ to (from) the cost of the investments.

(Short Answer)

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Question 80

Stocks traded on the New York Stock Exchange are considered readily marketable.

Pension funds and mutual funds regularly invest in debt and stock securities to

A company that owns more than 50% of the common stock of another company is known as the

Under IFRS Equity investments are generally recorded and reported at

Bay Company acquires 60 8% 5 year $1000 Community bonds on January 1 2017 for $60000. If Bay sells all of its Community bonds for $64500 what gain or loss is recognized?

Short-term investments are securities that are readily marketable and intended to be converted into cash within the next

In recognizing a decline in the fair value of short-term stock investments an unrealized loss account is debited because

An unrealized loss account on available-for-sale securities is

Short-term investments are securities that are _ and __ to be converted into cash within the next year.

Which of the following reasons best explains why a company that experiences seasonal fluctuations in sales may purchase investments in debt or stock securities?

The balance sheet presentation of an unrealized loss on an available-for-sale security is similar to the statement presentation of

In accounting for debt investments entries are made for each of the following except the

Fair Value Adjustment is a valuation _ account which is _ to (from) the cost of the investments.

Accounting in Action

The Recording Process

Adjusting the Accounts

Completing the Accounting Cycle

Accounting for Merchandising Operations

Inventories

Accounting Information Systems

Fraud, Internal Control, and Cash

Accounting for Receivables

Plant Assets, Natural Resources, and Intangible Assets

Current Liabilities and Payroll Accounting

Accounting for Partnerships

Corporations: Organization and Capital Stock Transactions

Corporations: Dividends, Retained Earnings, and Income Reporting

Long-Term Liabilities

Statement of Cash Flows

Financial Statement Analysis

Managerial Accounting

Job Order Costing

Process Costing

Cost-Volume-Profit

Budgetary Planning

Budgetary Control and Responsibility Accounting

Standard Costs and Balanced Scorecard

Incremental Analysis and Capital Budgeting

Time Value of Money

Filters

Exam 16: Investments

Stocks traded on the New York Stock Exchange are considered readily marketable.

Pension funds and mutual funds regularly invest in debt and stock securities to

A company that owns more than 50% of the common stock of another company is known as the

Under IFRS Equity investments are generally recorded and reported at

Bay Company acquires 60 8% 5 year $1000 Community bonds on January 1 2017 for $60000. If Bay sells all of its Community bonds for $64500 what gain or loss is recognized?

Short-term investments are securities that are readily marketable and intended to be converted into cash within the next

In recognizing a decline in the fair value of short-term stock investments an unrealized loss account is debited because

An unrealized loss account on available-for-sale securities is

Short-term investments are securities that are _____________ and ______________ to be converted into cash within the next year.

Which of the following reasons best explains why a company that experiences seasonal fluctuations in sales may purchase investments in debt or stock securities?

The balance sheet presentation of an unrealized loss on an available-for-sale security is similar to the statement presentation of

In accounting for debt investments entries are made for each of the following except the

Fair Value Adjustment is a valuation _______________ account which is _______________ to (from) the cost of the investments.

Accounting in Action

The Recording Process

Adjusting the Accounts

Completing the Accounting Cycle

Accounting for Merchandising Operations

Inventories

Accounting Information Systems

Fraud, Internal Control, and Cash

Accounting for Receivables

Plant Assets, Natural Resources, and Intangible Assets

Current Liabilities and Payroll Accounting

Accounting for Partnerships

Corporations: Organization and Capital Stock Transactions

Corporations: Dividends, Retained Earnings, and Income Reporting

Long-Term Liabilities

Statement of Cash Flows

Financial Statement Analysis

Managerial Accounting

Job Order Costing

Process Costing

Cost-Volume-Profit

Budgetary Planning

Budgetary Control and Responsibility Accounting

Standard Costs and Balanced Scorecard

Incremental Analysis and Capital Budgeting

Time Value of Money

Filters

Short-term investments are securities that are _ and __ to be converted into cash within the next year.

Fair Value Adjustment is a valuation _ account which is _ to (from) the cost of the investments.