Arkansana Inc.imports inventory from Costa Rica.Prepare the journal entries for Arkansana to record the following transactions.Include any year-end adjustments. \[\begin{array} { | l | l | } \hline & \text { Purchased inventory from Rojas Co. for } 5,000,000 \text { Costa Rican colon. The } \\ \text { Dec } 21 & \text { exchange rate was } \$ 0.002 \text { per colon. The credit terms were } n / 30 . \\ \hline \text { Dec } 31 & \text { The exchange rate was } \$ 0.0023 \text { per colon. } \\ \hline & \text { Paid Rojas Co. for the December } 21 \text { purchase. The exchange rate was } \\ \text {Jan } 20 & \$ 0.0021 \text { per colon. }\\ \hline \end{array}\]

\[\begin{array} { | l | l | r | r | } \

Carpark Services began operations in 20X1 and maintains long-term investments in available-for-sale securities.The year-end cost and fair values for its portfolio of these investments follow.The year-end adjusting entry to record the unrealized gain/loss at December 31,20X2 is: $\begin{array}{|l|l|r|} \hline \text { Available-for-Sale Securities } & \text { Cost } & \text { Fair Value } \\ \hline \text { December } 31,20 \mathrm{X} 1 & \$ 250,000 & \$ 241,000 \\ \hline \text { December } 31,20 \mathrm{X} 2 & \$ 340,000 & \$ 350,000 \\ \hline \text { December } 31,20 \mathrm{X} 3 & \$ 410,000 & \$ 415,00 \mathrm{0} \\ \hline \end{array}$

A) Debit Unrealized Gain - Equity $10,000; Credit Fair Value Adjustment - Available-for-Sale (LT) $10,000. B) Debit Fair Value Adjustment - Available-for-Sale (LT) $19,000; Credit Unrealized Loss - Equity $9,000; Credit Unrealized Gain - Equity, $10,000. C) Debit Fair Value Adjustment - Available-for-Sale (LT) $10,000; Credit Unrealized Gain - Equity, $10,000. D) Debit Fair Value Adjustment - Available-for-Sale (LT) $10,000; Credit Unrealized Loss - Equity $10,000. E) Debit Fair Value Adjustment - Available-for-Sale (LT) $19,000; Credit Unrealized Gain - Equity $19,000. A) Debit Unrealized Gain - Equity $10,000; Credit Fair Value Adjustment - Available-for-Sale (LT) $10,000. B) Debit Fair Value Adjustment - Available-for-Sale (LT) $19,000; Credit Unrealized Loss - Equity $9,000; Credit Unrealized Gain - Equity, $10,000. C) Debit Fair Value Adjustment - Available-for-Sale (LT) $10,000; Credit Unrealized Gain - Equity, $10,000. D) Debit Fair Value Adjustment - Available-for-Sale (LT) $10,000; Credit Unrealized Loss - Equity $10,000. E) Debit Fair Value Adjustment - Available-for-Sale (LT) $19,000; Credit Unrealized Gain - Equity $19,000.

Exam 15: Investments

Arkansana Inc.imports inventory from Costa Rica.Prepare the journal entries for Arkansana to record the following transactions.Include any year-end adjustments. Purchased inventory from Rojas Co. for 5,000,000 Costa Rican colon. The Dec 21 exchange rate was \ 0.002 per colon. The credit terms were n/30. Dec 31 The exchange rate was \ 0.0023 per colon. Paid Rojas Co. for the December 21 purchase. The exchange rate was Jan 20 \ 0.0021 per colon.

(Essay)

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Question 141

Marshall Company sold supplies in the amount of €25,000 (euros)to a French company when the exchange rate was $1.21 per euro.At the time of payment,the exchange rate decreased to $0.82.Marshall must record a:

(Multiple Choice)

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Question 142

When a U.S.company makes a credit sale to an international customer and the sale terms are for payment in a foreign currency,the foreign exchange rate used to record the sale is the exchange rate:

(Multiple Choice)

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Question 143

Match the following terms with the appropriate definitions. -A measure of operating efficiency,computed as net income divided by average total assets.

(Multiple Choice)

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Question 144

Match the following terms with the appropriate definitions. -Debt and equity securities that a company intends to actively manage and trade for profit.

(Multiple Choice)

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Question 145

Roe Corporation owns 2,000 shares of WRJ Corporation stock.WRJ Corporation has 25,000 shares of stock outstanding.WRJ paid $4 per share in cash dividends to its stockholders.The entry to record the receipt of these dividends is:

(Multiple Choice)

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Question 146

Match the following terms with the appropriate definitions. -A corporation controlled by another company when the controlling company owns more than 50% of the investee's voting stock.

(Multiple Choice)

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Question 147

FreshFoods,Inc.sells American gourmet foods to merchandisers in Singapore.Prepare the journal entries for FreshFoods,to record the following transactions.Include any year-end adjustments.

(Essay)

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Question 148

Draft Co.purchased 14,000 shares of Hamburg Corporation's 40,000 shares of common stock on January 1.This represented 35% of Hamburg's outstanding shares and gave Draft Co.significant influence over Hamburg's management and operations.On October 11,Hamburg declared and paid cash dividends of $30,000.On December 31,Hamburg reported net income of $125,000 for the year.Prepare the journal entries Draft Co.should record to account for the dividends received and the earnings reported by Hamburg Corporation.

(Essay)

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Question 149

MotorCity,Inc.purchased 40,000 shares of Shaw common stock for $232,000.This represents 40% of the outstanding stock.The entry to record the transaction includes a:

(Multiple Choice)

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Question 150

Short-term investments in held-to-maturity debt securities are accounted for using the:

(Multiple Choice)

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Question 151

Profit margin reflects the percent of net income in each dollar of net sales.

(True/False)

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Question 152

All companies desire a low return on total assets.

(True/False)

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Question 153

On February 15,Jewel Company buys 7,000 shares of Marcelo Corp.common stock at $28.53 per share plus a brokerage fee of $400.The stock is classified as available-for-sale securities.This is the company's first and only investment in available-for-sale securities.On March 15,Marcelo Corp.declares a dividend of $1.15 per share payable to stockholders of record on April 15.Jewel Company received the dividend on April 15 and ultimately sells half of the Marcelo Corp.stock on November 17 of the current year for $29.30 per share less a brokerage fee of $250.The fair value of the remaining shares is $29.50 per share.The impact on Jewel's net income as a result of its investment in Marcelo Corp.was a(n):

(Multiple Choice)

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Question 154

On February 15,Jewel Company buys 7,000 shares of Marcelo Corp.common stock at $28.53 per share plus a brokerage fee of $400.The stock is classified as available-for-sale securities.This is the company's first and only investment in available-for-sale securities.On March 15,Marcelo Corp.declares a dividend of $1.15 per share payable to stockholders of record on April 15.Jewel Company received the dividend on April 15 and ultimately sells half of the Marcelo Corp.stock on November 17 of the current year for $29.30 per share less a brokerage fee of $250.The journal entry to record the dividend on April 15 is:

(Multiple Choice)

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Question 155

Short-term investments are also called temporary investments or marketable securities.

(True/False)

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Question 156

Carpark Services began operations in 20X1 and maintains long-term investments in available-for-sale securities.The year-end cost and fair values for its portfolio of these investments follow.The year-end adjusting entry to record the unrealized gain/loss at December 31,20X2 is: Available-for-Sale Securities Cost Fair Value December 31,201 \ 250,000 \ 241,000 December 31,202 \ 340,000 \ 350,000 December 31,203 \ 410,000 \ 415,00

(Multiple Choice)

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Question 157

All of the following statements regarding accounting for noninfluential securities under U.S.GAAP and IFRS are true except:

(Multiple Choice)

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Question 158

At acquisition,debt securities are:

(Multiple Choice)

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Question 159

A company had net income of $350,000 in Year 1 and $520,000 in Year 2.The company had average total assets of $2,500,000 in Year 1 and $3,000,000 in Year 2.Calculate the return on total assets for Year 1 and Year 2.Comment on the results,did the company's performance improve?

(Essay)

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Question 160

Showing 141 - 160 of 228

Marshall Company sold supplies in the amount of €25,000 (euros)to a French company when the exchange rate was $1.21 per euro.At the time of payment,the exchange rate decreased to $0.82.Marshall must record a:

When a U.S.company makes a credit sale to an international customer and the sale terms are for payment in a foreign currency,the foreign exchange rate used to record the sale is the exchange rate:

Match the following terms with the appropriate definitions. -A measure of operating efficiency,computed as net income divided by average total assets.

Match the following terms with the appropriate definitions. -Debt and equity securities that a company intends to actively manage and trade for profit.

Roe Corporation owns 2,000 shares of WRJ Corporation stock.WRJ Corporation has 25,000 shares of stock outstanding.WRJ paid $4 per share in cash dividends to its stockholders.The entry to record the receipt of these dividends is:

Match the following terms with the appropriate definitions. -A corporation controlled by another company when the controlling company owns more than 50% of the investee's voting stock.

FreshFoods,Inc.sells American gourmet foods to merchandisers in Singapore.Prepare the journal entries for FreshFoods,to record the following transactions.Include any year-end adjustments.

MotorCity,Inc.purchased 40,000 shares of Shaw common stock for $232,000.This represents 40% of the outstanding stock.The entry to record the transaction includes a:

Short-term investments in held-to-maturity debt securities are accounted for using the:

Profit margin reflects the percent of net income in each dollar of net sales.

All companies desire a low return on total assets.

Short-term investments are also called temporary investments or marketable securities.

All of the following statements regarding accounting for noninfluential securities under U.S.GAAP and IFRS are true except:

At acquisition,debt securities are:

A company had net income of $350,000 in Year 1 and $520,000 in Year 2.The company had average total assets of $2,500,000 in Year 1 and $3,000,000 in Year 2.Calculate the return on total assets for Year 1 and Year 2.Comment on the results,did the company's performance improve?

Accounting in Business

Analyzing for Business Transactions

Adjusting Accounts for Financial Statements

Accounting for Merchandising Operations

Inventories and Cost of Sales

Cash, fraud, and Internal Controls

Accounting for Receivables

Accounting for Long-Term Assets

Accounting for Current Liabilities

Accounting for Long-Term Liabilities

Corporate Reporting and Analysis

Reporting Cash Flows

Analysis of Financial Statements

Time Value of Money

Partnership Accounting

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