Problem 12-6Requirement 12012Decemb

Problem 12-6
Requirement 1
2012
December 12($ in millions)
Investment in FF&G company bonds .............................................. 12
Cash .............................................................................................. 12
December 13
Investment in Ferry ordinary shares ................................................ 22
Cash .............................................................................................. 22
December 15
Cash................................................................................................... 12.1
Investment in FF&G companybonds 12.0
Gain on sale of investments ($12.1 - 12)...................................... 0.1
December 22
Investment in Treasury bills ...................................................................... 56
Investment in Treasury bonds..................................................................... 65
Cash .............................................................................................. 121
December 23
Cash............................................................................................................. 10
Loss on sale of investments ($10 - 11) ............................................. 1
Investment in Ferry ordinary shares ($22 x 1
/2) ........................... 11
December 26
Cash (selling price) ..................................................................................... 57
Gain on sale of investments ($57 - 56)......................................... 1
Investment in Treasury bills (account balance)............................ 56
December 27
Cash (selling price) 63
Loss on sale of investments ($63 - 65) 2
Investment in Treasury bonds (account balance)......................... 65
Chapter 12 - Investments
12-6
December 28
Cash................................................................................................... 0.2
Investment revenue....................................................................... 0.2
Problem 12-6 (concluded)
December 31
($ in millions)
Adjusting entry:
Net unrealized gains and losses—I/S
($10 million - [$22 million x 1
/2])................................................ 1.0
F air value adjustment .................................................................. 1.0
Closing entry:
Income summary (to balance) .......................................................... .7
Investment revenue ($5 + 0.2 million) ............................................. 5.2
Gain on sale of investments ($8 + 0.1 + 1 million).......................... 9.1
Loss on sale of investments ($11 + 1 + 2 million)....................... 14.0
Net unrealized gains and losses—I/S (adjusting entry)................ 1.0
Note: Unlike for available-for-sale securities, unrealized gains and losses are
included in income for trading securities.
Requirement 2
($ in millions)
Statement of financial position (short-term investment):
T rading S ecurities............................... 11
Less: Fair value adjustment (1)
Total...................................................... 10
Income statement:
Investment revenue (closing entry) 5.2
Gain on sale of investments (closing entry) 9.1
Loss on sale of investments (closing entry) (14.0)
Net unrealized gains and losses on investments (closing entry) (1.0)

ผลลัพธ์ (อังกฤษ) 2:

Problem 12-6
Requirement 1
two thousand and twelve
December 12 ($ in Millions)
Investment in bonds FF & G Company ............................... ............... 12
Cash ................................. .................................................. ........... 12
December 13
Investment in Ferry Ordinary shares ............................... ................. 22
Cash ............................... .................................................. ............. 22
December
12.1
Investment in FF & G Companybonds 12.0
Gain on sale of Investments ($ 12.1 - 12) .................................. 0.1 ....
December 22
Investment in Treasury Bills ....................................... ............................... 56
Investment in Treasury bonds .............. .................................................. 65 .....
........................................... Cash .................................................. . 121
December
10
Loss on sale of Investments ($ 10 - 11) ....................................... ...... 1
Investment in Ferry Ordinary shares ($ 22 x 1
/2) ........................... 11
December 26
Cash. (selling price) .............................................. ....................................... 57
Gain on sale of Investments ($ 57 - 56). ......................................... 1
Investment in Treasury Bills (Account balance). ............................ 56
December 27
Cash (selling Price) 63
Loss on sale of Investments ($ 63 - 65) 2
Investment in. Treasury bonds (Account balance) ......................... 65
12 Chapter - Investments
12-6
December.
0.2
Investment Revenue ............................................... ........................ 0.2
Problem 12-6 (concluded)
December 31
($ in Millions)
Adjusting Entry:
Net unrealized gains and losses-I /. S
($ 10 million - [$ 22 million x 1
/2]) .................................... ............ 1.0
F Air VALUE adjustment ................................. ................................. 1.0
Closing Entry:
Income Summary (to balance) ....... .................................................. . .7
Investment Revenue ($ 5 + 0.2 million) ....................................... ...... 5.2
Gain on sale of Investments ($ 8 + 1 + 0.1 million) .......................... 9.1
Loss on sale. of Investments (1 + 2 + $ 11 million) ....................... 14.0
Net unrealized gains and losses-I / S (adjusting Entry) ... ............. 1.0
Note: Unlike for available-for-sale Securities, unrealized gains and losses are
included in income for trading Securities.
Requirement 2
($ in Millions)
Statement of Financial position (short. -term Investment):
T rading S Ecurities ............................... 11
Less: Fair VALUE adjustment (1)
Total. .................................................. .... 10
Income statement:
Revenue Investment (closing Entry) 5.2
Gain on sale of Investments (closing Entry) 9.1
Loss on sale of Investments (closing Entry) (14.0)
Net unrealized gains and losses on Investments (closing Entry) (1.0. )