AC323 CHAPTER 17 IN-CLASS SOLUTIONS

AC323 CHAPTER 17 IN-CLASS SOLUTIONS - CHAPTER 17...

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CHAPTER 17 Investments In-Class Solutions SOLUTIONS TO BRIEF EXERCISES BRIEF EXERCISE 17-1 (a) Held-to-Maturity Securities . ...................................... 74,086 Cash . ................................................................... 74,086 (b) Cash ($80,000 X .09) . ................................................. 7,200 Held-to-Maturity Securities . ...................................... 949 Interest Revenue ($74,086 X .11). ...................... 8,149 BRIEF EXERCISE 17-2 (a) Available-for-Sale Securities. .................................... 74,086 Cash . ................................................................... 74,086 (b) Cash ($80,000 X .09) . ................................................. 7,200 Available-for-Sale Securities. .................................... 949 Interest Revenue ($74,086 X .11). ...................... 8,149 (c) Securities Fair Value Adjustment (AFS). .................. 465 Unrealized Holding Gain or Loss—Equity [($74,086 + $949) – $75,500] . .......................... 465 BRIEF EXERCISE 17-3 (a) Held-to-Maturity Securities . ...................................... 65,118 Cash . ................................................................... 65,118 (b) Cash ($60,000 X .08 x 6 / 12 ).......................................... 2,400 Held-to-Maturity Securities. ............................... 446 Interest Revenue ($65,118 X .06 x 6 / 12 ) .............. 1,954
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BRIEF EXERCISE 17-4 (a) Trading Securities . .................................................... 50,000 Cash . ................................................................... 50,000 (b) Cash. ........................................................................... 2,000 Interest Revenue . ............................................... 2,000 (c) Unrealized Holding Gain or Loss—Income. ............. 2,600 Securities Fair Value Adjustment (Trading) ($50,000 – $47,400) . ........................................ 2,600
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BRIEF EXERCISE 17-5 (a) Available-for-Sale Securities. ................................. 13,200 Cash . ................................................................ 13,200 (b) Cash. ........................................................................ 1,300 Dividend Revenue (400 X $3.25). .................... 1,300 (c) Securities Fair Value Adjustment (AFS). ............... 600 Unrealized Holding Gain or Loss—Equity [(400 X $34.50) – $13,200]. ........................... 600 BRIEF EXERCISE 17-6 (a) Trading Securities . ................................................. 13,200 Cash . ................................................................ 13,200 (b) Cash. ........................................................................ 1,300 Dividend Revenue (400 X $3.25). .................... 1,300 (c) Securities Fair Value Adjustment (Trading). ......... 600
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AC323 CHAPTER 17 IN-CLASS SOLUTIONS - CHAPTER 17...

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