Match each phrase with the correct term 1 losses of

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Unformatted text preview: l instruments When related to trading securities, they ___ increase net income. _ 140.Listed below are five terms followed by a list of phrases that describe or characterize each of the terms. Match each phrase with the correct term. 1. Losses of investee Requires positive intent and ability. _ __ _ 2. Unrealized holding gains Reported in the income statement for _ and losses trading securities. __ _ 3. Impairment of securities Requires recognition in the income _ available for sale statement if judged to be other than__ temporary. _ 4. Amortization of a patent Recognized only to the extent of carrying _ that was obtained in a business value under the equity method. __ acquisition _ 5. Securities held to maturity Reduces investment account under the _ equity method if its fair value is higher than__ its book value. _ 141.Listed below are five terms followed by a list of phrases that describe or characterize each of the terms. Match each phrase with the correct term. 1. Dividends Recognized as revenue for equity-method investments, but _ not for available-for-sale investments. __ _ 2. Consolidati Can be required in the future when, at the time an equity- _ on method investment is made, the fair value of investee's__ identifiable net assets exceeds their carrying value. _ 3. Additional Used when investor can significantly influence investee. _ depreciation __ _ 4. Investor's Used when investor has effective control of investee. _ share of __ investee _ income 5. Equity Recognized as revenue for available-for-sale investments, _ method but not equity-method investments. __ _ 142.Prepare the appropriate journal entries to record the transactions for the year, including any year-end adjustments. Show calculations, rounded to the nearest dollar. On March 1, 2013, Navy Corporation used excess cash to purchase U.S. Treasury bonds for $103,000 plus accrued interest. The bonds were purchased at face value. The appropriate interest rate is 6%. Interest on these bonds is payable on January 1 and July 1 of each year. Navy's investment is acc...
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This document was uploaded on 07/05/2013.

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