Ch17 solutions 10-12-17

Ch17 solutions 10-12-17 - CHAPTER 17 Investments SOLUTIONS...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
Investments SOLUTIONS TO EXERCISES EXERCISE 17-9 (10–15 minutes) (a) The portfolio should be reported at the fair value of $54,500. Since the cost of the portfolio is $53,000, the unrealized holding gain is $1,500, of which $400 is already recognized. Therefore, the December 31, 2006 adjusting entry should be: Securities Fair Value Adjustment (Available-for-Sale). ..................................................... 1,100 Unrealized Holding Gain or Loss—Equity. ............ 1,100 (b) The unrealized holding gain of $1,500 (including the previous balance of $400) should be reported as an addition to stockholders’ equity and the Securities Fair Value Adjustment (Available-for-Sale) account balance of $1,500 should be added to the cost of the securities account. STEFFI GRAF, INC. Balance Sheet As of December 31, 2006 ______________________________________________________________ Current assets: Available-for-sale securities $54,500 Stockholders’ equity: Common stock xxx,xxx Additional paid-in capital xxx,xxx Retained earnings xxx,xxx xxx,xxx Add: Accumulated other comprehensive income 1,500 * Total stockholders’ equity
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 09/20/2011 for the course ACC 319 taught by Professor Jones during the Fall '10 term at UNC Greensboro.

Page1 / 6

Ch17 solutions 10-12-17 - CHAPTER 17 Investments SOLUTIONS...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online