Direct Solutions Held Two Securities 1Prepare Journal Entries for the Investment in Bucket Organization,Inc
Direct Solutions held two securities.Direct Solutions purchased 100 Bucket Organization,Inc.,securities on January 1,2X09 for $15 per share and classified it as a trading security and purchased 80 Sunk Options Company securities on the same day for $34 per share and classified it as an available-for-sale security.Market values for both securities as of December 31,for 2X09,2X10,2X11,2X12 follow.
1.Prepare journal entries for the investment in Bucket Organization,Inc.as of
a.December 31,2X09.
b.December 31,2X10.
c.December 31,2X11.
d.December 31,2X12.
2.Prepare journal entries for the investment in Sunk Options Company as of the dates in (1)above.
3.Where would gains and losses recorded in (1)and (2)above be reported for:
a.Bucket Organization,Inc.?
b.Sunk Options Company?
Correct Answer:
Verified
3.a.Income statement for Bucket Orga...
View Answer
Unlock this answer now
Get Access to more Verified Answers free of charge
Q31: Debt securities classified as available-for-sale securities are
Q32: Comprehensive income includes both net income and
Q33: As the market value of trading securities
Q34: As the market value of available-for-sale securities
Q35: Bond discounts are amortized by taking the
Q37: The market method applies to short-term debt
Q38: Held-to-maturity securities are equity securities that the
Q39: U.S.Treasury obligations are interest-bearing notes,bonds,and bills issued
Q40: Held-to-maturity securities are carried on the balance
Q41: On January 1,2X13,Soothing Massage Company acquired,as
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents