12 Ch3. 12 - Class Templates Ans.

12 Ch3. 12 - Class Templates Ans. - Name: Required 1....

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Name: Solution Date: Prob: 12-5 Required 1. Chart of Accounts Cash Investment revenue Investment revenue receivable Gain on sale of investments Investment in AFS securities Loss on sale of investments Fair value adjustment - AFS Net unrealized holding gains or losss - OCI Date Account Titles / Explanations Debit Credit 2/21/09 Investment in AFS securities 400,000 Cash 400,000 Distribution Transformers shares 3/18/09 Cash 8,000 Investment revenue 8,000 9/1/09 Investment in AFS securities 900,000 Cash 900,000 American Instruments bonds 10/20/09 Cash 425,000 Investment in AFS securities 400,000 Gain on sale of investments 25,000 Distribution Transformers shares 11/1/09 Investment in AFS securities 1,400,000 Cash 1,400,000 12/31/09 Investment revenue receivable 30,000 Investment revenue 30,000 $900,000 X 10% X 4/12 12/31/09 Fair value adjustment - AFS 10,000 Net unrealized holding gains and losses - OCI 10,000 Cost $2,300,000 - FV $2,310,000 Check: 3,173,000 3,173,000 Required 2. Income Statement: Investment revenue $38,000 Gain on sale of investments 25,000 Statement of Comprehensive Income Net unrealized holding gains and losses on investments $10,000 Balance Sheet Current Assets Investment revenue receivable $30,000 Securities available-for-sale $2,300,000 Plus: Fair value adjustment 10,000 $2,310,000 Shareholders' Equity Accumulated other comprehensive income
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Net unrealized holding gain(loss) $10,000
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Required 3. Date Account Titles / Explanations Debit Credit 1/20/10 Cash 1,485,000 Investment in AFS securities 1,400,000 Gain on sale of investments 85,000 3/1/10 Cash 45,000 Investment revenue receivable 30,000 Investment revenue 15,000 8/12/10 Investment in AFS securities 650,000 Cash 650,000 Vast Communications 9/1/10 Cash 45,000 Investment revenue 45,000 12/31/10 Investment revenue receivable 30,000 Investment revenue 30,000 $900,000 X 10% X 4/12 12/31/10 Net unrealized holding gains and losses - OCI 60,000 Fair value adjustment - AFS 60,000
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12 Ch3. 12 - Class Templates Ans. - Name: Required 1....

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