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Scott Ward - Wk3 - (a 1-Jan-06 Held to Maturity Securities...

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Q17-18 There are five disclosures that should be in the investor's financial statemesnts, the first is the names of each intvestee and the percentage of ownership of the common stock. The second is the accounting policies of the investor with the investments in common stock. Third is the difference between the amount in the investment account and the amount of the equity in the net assets of the investee. The next item is the aggregate value of each identified investment based on the quoted market price. Lastly, it maybe appropriate to show summarized information concerning assets, liabilities, and results of operations of the investees, shown individually or in groups.
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EXERCISE 17-2 (10-15 minutes)
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Unformatted text preview: (a) 1-Jan-06 Held to Maturity Securities $300,000 Cash $300,000 (b) 31-Dec-06 Cash $36,000 Interest Revenue $36,000 (c) 31-Dec-07 Cash $36,000 Interest Revenue $36,000 EXERCISE 17-6 (10-15 minutes) (a) Securities FV Adjustment (Trading) $5,000 Unrealized Holding Gain/Loss (Income) $5,000 (b) Securities FV Adjustment (Available for Sale) $5,000 Unrealized Holding Gain/Loss (Equity) $5,000 (c) The Unrealized holding gain or loss for income should be recorded as other revenues and gains in the income statement, where the unrealized holding gain or loss for equity should be recorded as other comprehensive income and is part of stockholders' equity until it is realized....
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