Int2 Week 7
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Pages: 2
Category: Literature
Date Submitted: 09/22/2013 06:36 PM
Exercise 17-1
a. 1
b. 2
c. 1
d. 2
e. 3
f. 2
Exercise 17-2
a. Jan. 1, 2012: Debt Investments 300,000
Cash 300,000
b. Dec. 31, 2012: Cash 30,000
Interest Revenue 30,000
c. Dec. 31, 2013: Cash 30,000
Interest Revenue 30,000
Exercise 17-9
a. The 54,400 should be reported at fair value. The adjusting entry for December 31, 2012 is:
Fair Value Adjustment 1,300
Unrealized Gain/Loss 1,300
b. The gain of 1,500 should be added to the stockholders equity and the fair value adjustment should be added to the securities account
Wegner INC
Balance Sheet
As of December 31, 2012
Current Assets:
Equity Investments 54,500
Stockholders equity:
Accumulated other comprehensive income 1500
Total stockholders equity 1500
c. Net proceeds from Security A 15,300
Cost of Security A 17,500
Loss on Investments (2,200)
Jan. 20, 203
Cash 15,300
Loss on Sale on Investments 2,200
Equity Investments 17,500
Exercise 17-12
Situation 1
Mar. 18, 2012
Equity Investments 280,000
Cash 280,000
June 30, 2012
Cash 7,500
Dividend Revenue 7,500
December 31, 2012
Fair Value Adjustment 20,000
Unrealized Gain/Loss 20,000
Situation 2
Jan. 1, 2012
Equity Investments 67,500
Cash 67,500
June 15, 2012
Cash 9,000
Equity Investments 9,000
Dec. 31, 2012
Equity Investments 21,250
Revenue from Investments 21,250
Exercise 17-16
Dec. 31, 2012
Equity Investments 1,250,000
Cash 1,250,000
June 30, 2013
Cash 40,000
Dividend Revenue 40,000
Dec. 31, 2013
Cash 40,000
Dividend Revenue 40,000
Fair Value Adjustment 100,000
Unrealized Gain/Loss 100,000
b. Dec. 31, 2012
Equity Investments 1,250,000
Cash 1,250,000
June 30, 2013
Cash 40,000
Equity Investments 40,000
December 31, 2013
Cash...
