ACCT 3121 Chapter : Ch17 StudentSolutions

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15 Mar 2019
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Copyright © 2013 John Wiley & Sons, Inc. Kieso, Intermediate Accounting, 15/e, Solutions Manual (For Instructor Use Only) 17-1
CHAPTER 17
Investments
SOLUTIONS TO BRIEF EXERCISES
BRIEF EXERCISE 17-1
(a) Debt Investments ....................................................... 74,086
Cash .................................................................... 74,086
(b) Cash ($80,000 X .09) .................................................. 7,200
Debt Investments ....................................................... 949
Interest Revenue ($74,086 X .11) ....................... 8,149
BRIEF EXERCISE 17-2
(a) Debt Investments (available-for-sale)....................... 74,086
Cash .................................................................... 74,086
(b) Cash ($80,000 X .09) .................................................. 7,200
Debt Investments (available-for-sale)....................... 949
Interest Revenue ($74,086 X .11) ....................... 8,149
(c) Fair Value Adjustment (available-for-sale) ............... 465
Unrealized Holding Gain or LossEquity
[($74,086 + $949) $75,500] ........................... 465
BRIEF EXERCISE 17-3
(a) Debt Investments ....................................................... 65,118
Cash .................................................................... 65,118
(b) Cash ($60,000 X .08 X 6/12) ......................................... 2,400
Debt Investments (held-to-maturity) ................. 446
Interest Revenue ($65,118 X .06 X 6/12) .............. 1,954
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17-2 Copyright © 2013 John Wiley & Sons, Inc. Kieso, Intermediate Accounting, 15/e, Solutions Manual (For Instructor Use Only)
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Copyright © 2013 John Wiley & Sons, Inc. Kieso, Intermediate Accounting, 15/e, Solutions Manual (For Instructor Use Only) 17-3
BRIEF EXERCISE 17-4
(a) Debt Investments (trading) .................................... 50,000
Cash ................................................................. 50,000
(b) Cash ......................................................................... 2,000
Interest Revenue ............................................. 2,000
(c) Unrealized Holding Gain or LossIncome ........... 2,600
Fair Value Adjustment (trading)
($50,000 $47,400) ...................................... 2,600
BRIEF EXERCISE 17-5
(a) Equity Investments (available-for-sale) ................. 13,200
Cash ................................................................. 13,200
(b) Cash ......................................................................... 1,300
Dividend Revenue (400 X $3.25) ..................... 1,300
(c) Fair Value Adjustment (available-for-sale) ............ 600
Unrealized Holding Gain or LossEquity
[(400 X $34.50) $13,200] ............................ 600
BRIEF EXERCISE 17-6
(a) Equity Investments (trading) ................................. 13,200
Cash ................................................................. 13,200
(b) Cash ......................................................................... 1,300
Dividend Revenue (400 X $3.25) ..................... 1,300
(c) Fair Value Adjustment (trading) ............................. 600
Unrealized Holding Gain or LossIncome
[(400 X $34.50) $13,200] ............................ 600
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Document Summary

Cash (b) cash (,000 x . 09) Interest revenue (,086 x . 11) (c) fair value adjustment (available-for-sale) Cash (b) cash (,000 x . 08 x 6/12) Interest revenue (,118 x . 06 x 6/12) Copyright 2013 john wiley & sons, inc. kieso, intermediate accounting, 15/e, solutions manual (for instructor use only) (,000 ,400) Brief exercise 17-4 (a) debt investments (trading) Interest revenue (c) unrealized holding gain or loss income Brief exercise 17-5 (a) equity investments (available-for-sale) Dividend revenue (400 x . 25) (c) fair value adjustment (available-for-sale) Brief exercise 17-6 (a) equity investments (trading) Dividend revenue (400 x . 25) (c) fair value adjustment (trading) Brief exercise 17-9 (a) other comprehensive income (loss) for 2011: (. 9) million (b) comprehensive income for 2011: ,234. 8 million or (,245. 7 . 9) (c) accumulated other comprehensive income: . 3 million or (. 2 . In 2011, starbucks also reported foreign currency trans- lation adjustments, which affected accumulated other comprehensive income.

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