Question 1

Wiffery Company had the following trading securities in its portfolio at December 31.The Market Adjustment - Trading account had balance of zero prior to year-end adjustment.Prepare the appropriate adjusting journal entry.

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Question 2

Explain how transactions (both sales and purchases)in a foreign currency are recorded and reported.

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Question 3

Explain how equity securities having significant influence are accounted for and reported in the financial statements.Include a discussion of the criterion for these securities in terms of an investee's voting stock.

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Question 4

On April 1 of the current year,a company paid $150,000 to purchase 7%,10-year bonds that had a par value of $150,000 and paid interest semiannually each April 1 and October 1.The company intends to hold the bonds until they mature.Prepare the journal entry to record the receipt of the first semiannual interest payment on October 1 of the current year.

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Question 5

A company reported net income for 2009 of $98,000 and $106,000 in 2010.It also reported net sales of $735,000 in 2009 and $798,000 in 2010.The company's average total assets in 2009 were $1,850,000 and $1,720,000 in 2010.Calculate this company's profit margin,total asset turnover and return on total assets for 2009 and 2010.Comment on the results.

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Question 6

Identify the three types of classifications for non-influential investments in securities.

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Question 7

A company had net income of $76,000 in 2009 and $88,000 in 2010.Its net sales were $640,000 in 2009 and $611,000 in 2010.Its average total assets in 2009 were $670,000 and $712,000 in 2010.Calculate the profit margin,total asset turnover and return on total assets for both years.Comment on the results.

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Question 8

A company reported net income of $100,000 and average total assets of $425,000.Calculate its return on total assets.

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Question 9

On April 1 of the current year,a company paid $150,000 cash to purchase 7%,10-year bonds that had a par value of $150,000 and paid interest semiannually each April 1 and October 1.The company intends to hold these bonds until they mature.Prepare the journal entry to record the purchase of the bond.

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Question 10

Explain how held-to-maturity debt securities are accounted for at and after acquisition and how they are reported in the financial statements.

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Question 11

A company paid $500,000 for 12% bonds with a par value of $500,000.The bonds pay 6% interest semiannually on September 1 and March 1.The company intends to hold the bonds until they mature.Prepare the journal entries for the following dates and transactions related to this bond acquisition.
(1)Bonds purchased on September 1,2009.
(2)Year-end adjusting entry,December 31,2009.
(3)Receipt of semiannual interest March 1,2010.
(4)Redemption of the bonds at maturity on August 31,2016.

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Question 12

Define the return on total assets and explain how it is used to measure a company's financial performance.

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Question 13

On April 1 of the current year,a company paid $150,000 to purchase 7%,10-year bonds that had a par value of $150,000 and paid interest semiannually on October 1 and April 1.The company intends to hold the bonds until they mature.Prepare the journal entry to recognize accrued interest as of December 31 of the current year.

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Question 14

Define the foreign exchange rate between two currencies.Explain its effect on business transactions conducted in a foreign currency.

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Question 15

Explain how to record the sale of trading securities.

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Question 16

A company reported net income of $275,000,net sales of $2,500,000 and average total assets of $2,100,000 for the current year.Calculate this company's profit margin,total asset turnover and return on total assets.

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Question 17

A company had net income of $450,000 in 2009 and $620,000 in 2010.The company had average total assets of $2,500,000 in 2009 and $3,000,000 in 2010.Calculate the return on total assets for 2009 and 2010.Comment on the results.

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Question 18

A company had net income of $45,000,net sales of $390,000 and average total assets of $250,000 for the current year.Calculate this company's profit margin,total asset turnover and return on total assets.

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Question 19

Explain how available-for-sale debt and equity securities are accounted for at and after acquisition and how they are reported in financial statements.

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Question 20

On April 1 of the current year,a company paid $150,000 to purchase 7%,10-year bonds that had a par value of $150,000 and paid interest semiannually on October 1 and April 1.The company intends to hold the bonds until they mature.Prepare the journal entry to record the receipt of the semiannual interest payment on April 1 of the following year.

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Quiz 14: Investments and International Operations

Wiffery Company had the following trading securities in its portfolio at December 31.The Market Adjustment - Trading account had balance of zero prior to year-end adjustment.Prepare the appropriate adjusting journal entry.

Explain how transactions (both sales and purchases)in a foreign currency are recorded and reported.

Explain how equity securities having significant influence are accounted for and reported in the financial statements.Include a discussion of the criterion for these securities in terms of an investee's voting stock.

Identify the three types of classifications for non-influential investments in securities.

A company reported net income of $100,000 and average total assets of $425,000.Calculate its return on total assets.

On April 1 of the current year,a company paid $150,000 cash to purchase 7%,10-year bonds that had a par value of $150,000 and paid interest semiannually each April 1 and October 1.The company intends to hold these bonds until they mature.Prepare the journal entry to record the purchase of the bond.

Explain how held-to-maturity debt securities are accounted for at and after acquisition and how they are reported in the financial statements.

Define the return on total assets and explain how it is used to measure a company's financial performance.

Define the foreign exchange rate between two currencies.Explain its effect on business transactions conducted in a foreign currency.

Explain how to record the sale of trading securities.

A company reported net income of $275,000,net sales of $2,500,000 and average total assets of $2,100,000 for the current year.Calculate this company's profit margin,total asset turnover and return on total assets.

A company had net income of $450,000 in 2009 and $620,000 in 2010.The company had average total assets of $2,500,000 in 2009 and $3,000,000 in 2010.Calculate the return on total assets for 2009 and 2010.Comment on the results.

A company had net income of $45,000,net sales of $390,000 and average total assets of $250,000 for the current year.Calculate this company's profit margin,total asset turnover and return on total assets.

Explain how available-for-sale debt and equity securities are accounted for at and after acquisition and how they are reported in financial statements.