Filters
Question type
Study Flashcards

Jonas Corporation has excess cash to invest and pays $200,000 to buy 7%,five-year bonds of Ridgeline Corporation,at face value,on June 30,2018.The bonds pay interest on June 30 and December 31.Jonas intends to hold the bonds to maturity.The bonds are disposed of,at face value,on June 30,2023. Prepare the journal entry for December 31,2018 (omit the explanation).

Correct Answer

verifed

verified

blured image Interest ...

View Answer

Gardens,Inc.invests its excess cash in Innovative Technologies,Inc.and acquires 4300 shares for $28.00 per share.Garden,Inc.owns less than 3% of Innovative's voting stock and plans to hold the stock for two years.Which of the following is the correct journal entry for the transaction?


A)
Gardens,Inc.invests its excess cash in Innovative Technologies,Inc.and acquires 4300 shares for $28.00 per share.Garden,Inc.owns less than 3% of Innovative's voting stock and plans to hold the stock for two years.Which of the following is the correct journal entry for the transaction? A) B) C) D)
B)
Gardens,Inc.invests its excess cash in Innovative Technologies,Inc.and acquires 4300 shares for $28.00 per share.Garden,Inc.owns less than 3% of Innovative's voting stock and plans to hold the stock for two years.Which of the following is the correct journal entry for the transaction? A) B) C) D)
C)
Gardens,Inc.invests its excess cash in Innovative Technologies,Inc.and acquires 4300 shares for $28.00 per share.Garden,Inc.owns less than 3% of Innovative's voting stock and plans to hold the stock for two years.Which of the following is the correct journal entry for the transaction? A) B) C) D)
D)
Gardens,Inc.invests its excess cash in Innovative Technologies,Inc.and acquires 4300 shares for $28.00 per share.Garden,Inc.owns less than 3% of Innovative's voting stock and plans to hold the stock for two years.Which of the following is the correct journal entry for the transaction? A) B) C) D)

E) None of the above
F) All of the above

Correct Answer

verifed

verified

Orbit Services,Inc.pays $700,000 to acquire 30% (200,000 shares) of the voting stock of State Investments,Inc.on January 5,2019.State Investments,Inc.declares and pays a cash dividend of $1.40 per share on June 14,2019.Which of the following is the correct journal entry for the transaction on June 14,2019?


A)
Orbit Services,Inc.pays $700,000 to acquire 30% (200,000 shares) of the voting stock of State Investments,Inc.on January 5,2019.State Investments,Inc.declares and pays a cash dividend of $1.40 per share on June 14,2019.Which of the following is the correct journal entry for the transaction on June 14,2019? A) B) C) D)
B)
Orbit Services,Inc.pays $700,000 to acquire 30% (200,000 shares) of the voting stock of State Investments,Inc.on January 5,2019.State Investments,Inc.declares and pays a cash dividend of $1.40 per share on June 14,2019.Which of the following is the correct journal entry for the transaction on June 14,2019? A) B) C) D)
C)
Orbit Services,Inc.pays $700,000 to acquire 30% (200,000 shares) of the voting stock of State Investments,Inc.on January 5,2019.State Investments,Inc.declares and pays a cash dividend of $1.40 per share on June 14,2019.Which of the following is the correct journal entry for the transaction on June 14,2019? A) B) C) D)
D)
Orbit Services,Inc.pays $700,000 to acquire 30% (200,000 shares) of the voting stock of State Investments,Inc.on January 5,2019.State Investments,Inc.declares and pays a cash dividend of $1.40 per share on June 14,2019.Which of the following is the correct journal entry for the transaction on June 14,2019? A) B) C) D)

E) A) and B)
F) B) and C)

Correct Answer

verifed

verified

Available-for-sale (AFS) debt investments are reported as ________ if the business expects to sell them within one year.


A) current assets
B) equity
C) long-term assets
D) either current assets or long-term assets

E) C) and D)
F) B) and D)

Correct Answer

verifed

verified

The unrealized holding gains and losses on available-for-sale debt investments are recorded as an adjustment to the Unrealized Holding Gain-Available-for-Sale account or Unrealized Holding Loss-Available-for-Sale account.

A) True
B) False

Correct Answer

verifed

verified

Which of the following statements regarding debt securities is incorrect?


A) Debt securities include Held-to-Maturity Debt Investments,Trading Debt Investments,and Available-for-Sale Debt Investments.
B) When recording the receipt of interest revenue on Trading Debt Investments,Interest Revenue is credited.
C) If a Held-to-Maturity Debt Investment is purchased at a discount or premium,the discount/premium must be amortized when the interest revenue is earned.
D) All investments in debt securities are categorized as long-term assets.

E) A) and B)
F) B) and C)

Correct Answer

verifed

verified

Consolidation accounting is the way to combine the financial statements of two or more companies that have the same owners.

A) True
B) False

Correct Answer

verifed

verified

A parent company is a company that ________.


A) is controlled by another corporation
B) owns a controlling interest in another company
C) is the first to begin operations in an industry
D) has any level of investment in another company

E) None of the above
F) C) and D)

Correct Answer

verifed

verified

Significant influence equity investments are reported as ________ on the balance sheet.


A) current assets
B) either current assets or current liabilities
C) long-term assets
D) either current assets or long-term assets

E) None of the above
F) All of the above

Correct Answer

verifed

verified

For each of the following transactions related to Held-to-Maturity Debt securities,state the following: (1)Which account(s)is (are)increased? (2)Which account(s)is (are)decreased? (3)What is the net effect on total assets and total equity? This net effect can be increase,decrease,or no net effect. Transaction: a.The investment was purchased at $50,000 (face value)plus brokerage fees of $2,000. b.Semi-annual interest of $1,500 was received. c.The investment was disposed of at maturity.Cash in the amount of $50,000 was received. For each of the following transactions related to Held-to-Maturity Debt securities,state the following: (1)Which account(s)is (are)increased? (2)Which account(s)is (are)decreased? (3)What is the net effect on total assets and total equity? This net effect can be increase,decrease,or no net effect. Transaction: a.The investment was purchased at $50,000 (face value)plus brokerage fees of $2,000. b.Semi-annual interest of $1,500 was received. c.The investment was disposed of at maturity.Cash in the amount of $50,000 was received.

Correct Answer

verifed

verified

Which of the following will be classified as an available-for-sale debt investment?


A) debt securities which the investor intends to sell in the very near future
B) debt securities the investor intends to hold and has the ability to hold until they mature
C) all investments in Treasury bills
D) all debt securities that are not trading debt investments or held-to-maturity debt investments

E) A) and B)
F) None of the above

Correct Answer

verifed

verified

Littlefield Industries purchased a bond on September 1 of the current year for $200,000 and classified the investment as trading debt.The market value of the trading debt investment at year-end is $196,000.The adjustment is ________.


A) reported as a separate component of stockholders' equity
B) added to the Trading Debt Investments account
C) not reported on the income statement because the bond has not been disposed of
D) reported as a $4,000 unrealized holding loss in the Other Income and (Expenses) section of the income statement

E) C) and D)
F) A) and D)

Correct Answer

verifed

verified

Which of the following is an example of debt securities?


A) preferred stocks
B) real estate
C) common stocks
D) corporate bonds

E) All of the above
F) None of the above

Correct Answer

verifed

verified

Trading debt investments include ________.


A) debt securities that the investor expects to hold longer than one year or debt securities that are not readily marketable
B) investments in debt securities that are not readily marketable and that the investor intends to hold until they mature
C) investments in debt securities that the investor intends to hold until they mature
D) debt securities that the investor plans to sell in the very near future

E) B) and D)
F) B) and C)

Correct Answer

verifed

verified

Which of the following is true of trading debt investments?


A) They are held for more than two years.
B) They are generally recorded as long-term investments.
C) They must be adjusted and reported at fair value at the end of each period.
D) They are always reported on the balance sheet at their historical cost.

E) A) and B)
F) None of the above

Correct Answer

verifed

verified

The Unrealized Holding Gain-Available-for-Sale account and Unrealized Holding Loss-Available-for-Sale account are included the Other Income and (Expenses)section of the income statement.

A) True
B) False

Correct Answer

verifed

verified

Which of the following may pay dividends?


A) preferred stock
B) investors
C) Treasury bills
D) notes payable

E) None of the above
F) A) and D)

Correct Answer

verifed

verified

A ________ ownership in the investee's voting stock can significantly influence the investee's decisions.


A) 10 percent
B) 5 percent to 10 percent
C) 15 percent to 20 percent
D) 20 percent to 50 percent

E) B) and C)
F) A) and D)

Correct Answer

verifed

verified

Which of the following is true of available-for-sale (AFS) debt investments?


A) They are always reported as current assets in the balance sheet.
B) They are always reported as long-term assets in the balance sheet.
C) They are reported as current assets on the balance sheet only if the business expects to sell them within the first two years.
D) They are reported as long-term assets on the balance sheet only if they are planned to be held for longer than a year.

E) C) and D)
F) A) and D)

Correct Answer

verifed

verified

When a trading debt security is disposed,the fair value adjustment is used in determining the calculation of the gain or loss on disposal.

A) True
B) False

Correct Answer

verifed

verified

Showing 101 - 120 of 193

Related Exams

Exam 1

Accounting and the Business Environment

263 Questions

Exam 2

Recording Business Transactions

219 Questions

Exam 3

The Adjusting Process

225 Questions

Exam 4

Completing the Accounting Cycle

208 Questions

Exam 5

Merchandising Operations

277 Questions

Exam 6

Merchandise Inventory

199 Questions

Exam 7

Internal Control and Cash

258 Questions

Exam 8

Receivables

234 Questions

Exam 9

Plant Assets, natural Resources, and Intangibles

212 Questions

Exam 11

Current Liabilities and Payroll

225 Questions

Exam 12

Long-Term Liabilities

207 Questions

Exam 13

Stockholders Equity

277 Questions

Exam 14

The Statement of Cash Flows

183 Questions

Exam 15

Financial Statement Analysis

161 Questions

Exam 16

Introduction to Managerial Accounting

245 Questions

Exam 17

Job Order Costing

191 Questions

Exam 18

Process Costing

173 Questions

Exam 19

Cost Management Systems: Activity-Based, just-In-Time,

189 Questions

Exam 20

Cost-Volume-Profit Analysis

195 Questions

Exam 21

Variable Costing

148 Questions

Exam 22

Master Budgets

181 Questions

Exam 23

Flexible Budgets and Standard Cost Systems

223 Questions

Exam 24

Responsibility Accounting and Performance Evaluation

188 Questions

Exam 25

Short-Term Business Decisions

200 Questions

Exam 26

Capital Investment Decisions

152 Questions

Exam 27

Accounting Information Systems

164 Questions

Show Answer