Solved

Cold Cat Inc

Question 177

Essay

Cold Cat Inc., a snowmobile manufacturer, reported the following in its 20X5 annual report to shareholders:
Cold Cat Inc., a snowmobile manufacturer, reported the following in its 20X5 annual report to shareholders: Trading securities consist of $54,608,000 and $41,707,000 invested in various corporate bonds at March 31, 20X5 and 20X4, respectively, while the remainder of trading securities and available-for-sale securities consist primarily of A-rated or higher municipal bond investments. The amortized cost and fair value of debt securities classified as available-for-sale was $3,105,000 and $3,196,000, at March 31, 20X5. The unrealized holding gain on available-for-sale debt securities is reported, net of tax, as a separate component of shareholders' equity. Cold Cat Inc. CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY Years Ended March 31, Accumulated Other Comprehensive Income changed by the following amounts: NOTE B - SHORT-TERM INVESTMENTS Short-term investments consist primarily of a diversified portfolio of municipal and corporate bonds and are classified as follows at March 31: In its 20X4 annual report, Cold Cat disclosed, The contractual maturities of available-for-sale debt securities at March 31, 20X4, are $3,573,000 within one year and $3,340,000 from one year through five years. -Assume Cold Cat did not purchase any trading securities during 20X5. Prepare a journal entry to record any unrealized holding gains or losses on trading securities during 20X5.
Trading securities consist of $54,608,000 and $41,707,000 invested in various corporate bonds at March 31, 20X5 and 20X4, respectively, while the remainder of trading securities and available-for-sale securities consist primarily of A-rated or higher municipal bond investments. The amortized cost and fair value of debt securities classified as available-for-sale was $3,105,000 and $3,196,000, at March 31, 20X5. The unrealized holding gain on available-for-sale debt securities is reported, net of tax, as a separate component of shareholders' equity.

Cold Cat Inc.
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY
Years Ended March 31,

Accumulated Other Comprehensive Income changed by the following amounts:

NOTE B - SHORT-TERM INVESTMENTS
Short-term investments consist primarily of a diversified portfolio of municipal and corporate bonds and are classified as follows at March 31:

Cold Cat Inc., a snowmobile manufacturer, reported the following in its 20X5 annual report to shareholders: Trading securities consist of $54,608,000 and $41,707,000 invested in various corporate bonds at March 31, 20X5 and 20X4, respectively, while the remainder of trading securities and available-for-sale securities consist primarily of A-rated or higher municipal bond investments. The amortized cost and fair value of debt securities classified as available-for-sale was $3,105,000 and $3,196,000, at March 31, 20X5. The unrealized holding gain on available-for-sale debt securities is reported, net of tax, as a separate component of shareholders' equity. Cold Cat Inc. CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY Years Ended March 31, Accumulated Other Comprehensive Income changed by the following amounts: NOTE B - SHORT-TERM INVESTMENTS Short-term investments consist primarily of a diversified portfolio of municipal and corporate bonds and are classified as follows at March 31: In its 20X4 annual report, Cold Cat disclosed, The contractual maturities of available-for-sale debt securities at March 31, 20X4, are $3,573,000 within one year and $3,340,000 from one year through five years. -Assume Cold Cat did not purchase any trading securities during 20X5. Prepare a journal entry to record any unrealized holding gains or losses on trading securities during 20X5.
In its 20X4 annual report, Cold Cat disclosed, "The contractual maturities of available-for-sale debt securities at March 31, 20X4, are $3,573,000 within one year and $3,340,000 from one year through five years."
-Assume Cold Cat did not purchase any trading securities during 20X5. Prepare a journal entry to record any unrealized holding gains or losses on trading securities during 20X5.

Correct Answer:

verifed

Verified

Fair value adjustment $9,151,0...

View Answer

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Q172: Fragrance International, a large perfume manufacturer, reported

Q173: Hobson Company bought the securities listed below

Q174: All investments in debt securities whose fair

Q175: IFRS No. 9 is a standard that

Q176: On January 1, 2018, Hoosier Company purchased

Q178: Cold Cat Inc., a snowmobile manufacturer, reported

Q179: The fair value option cannot be elected

Q180: Both debt and equity securities can be

Q181: Sometimes companies change the extent to which

Q182: The current accounting standards require fair value