Question

In: Accounting

Question 15 At December 31, 2017, the available-for-sale debt portfolio for Bramble, Inc. is as follows:...

Question 15

At December 31, 2017, the available-for-sale debt portfolio for Bramble, Inc. is as follows:

Security Cost Fair Value Unrealized Gain (Loss)

A $62,125 $53,250 $(8,875 )

B 44,375 49,700 5,325

C 81,650 90,525 8,875

Total $188,150 $193,475 5,325

Previous fair value adjustment balance—Dr. 1,420

Fair value adjustment—Dr. $3,905

On January 20, 2018, Bramble, Inc. sold security A for $53,605. The sale proceeds are net of brokerage fees.

Bramble Inc. reports net income in 2017 of $426,000 and in 2018 of $497,000. Unrealized holding gains and gains equal $142,000 in 2018.

Prepare a statement of comprehensive income for 2017, starting with net income. BRAMBLE, INC Statement of Comprehensive Income For the Year Ended December 31, 2017  

Prepare a statement of comprehensive income for 2018, starting with net income. BRAMBLE, INC Statement of Comprehensive Income For the Year Ended December 31, 2018

Solutions

Expert Solution

i) Preparing a statement of comprehensive income for 2017, starting with net income. BRAMBLE, INC Statement of Comprehensive Income For the Year Ended December 31, 2017  

Bramble Inc. reports net income in 2017 of = $426,000

Fair value adjustment = Dr. $3,905

FLOUNDER, INC
Records of Income
End of Dec 17, 31
Total Net Income 426000
Other Income
Unrealized Holding Gain 3905

Comprehensive Income

Total Net Income + Unrealized Holding Gain

426000 + 3905

 429905

ii)Preparing a statement of comprehensive income for 2018, starting with net income. BRAMBLE, INC Statement of Comprehensive Income For the Year Ended December 31, 2018

Bramble Inc. reports net income in 2018 of = $497,000.

Unrealized holding gains and gains equal = $142,000

Particulars and Details
FLOUNDER, INC
End of Year Dec 31, 18
Total gross income of the FLOUNDER, INC 497000
Other Income
Holding Profit 142000
Addition

Reclassification Adjustment for Loss Included in Net Income

Holding Gains + Net Income = 142000 + 8520 = 150520

 8520 150520

Comprehensive Income

FLOUNDER, INC+ Reclassification Adjustment for Loss Included in Net Income

497000 + 150520 = 647520

 647520

Fair value adjustment = Dr. $3,905

Unrealized holding gains and gains equal in 2018 = $142,000

Accumulated Other comprhensive income
Pending bal , Jan1 3905
Present period OCI 142000
Accumulated Oci 8520
holding profit 150520
Ending Balance ,dec 31

beginning balance , Jan1 + Unrealised holding gain

3905 + 150520 = 154425

 154425

Any doubt comment below i will explain until you got....
PLEASE.....UPVOTE....ITS REALLY HELPS ME....THANK YOU....SOOO MUCH....

ekkarill92 answered 2 years ago
Next > < Previous

Related Solutions

At December 31, 2020, the available-for-sale debt portfolio for Pharoah, Inc. is as follows. Security Cost...
At December 31, 2020, the available-for-sale debt portfolio for Pharoah, Inc. is as follows. Security Cost Fair Value Unrealized Gain (Loss) A $23,625 $20,250 $(3,375 ) B 16,875 18,900 2,025 C 31,050 34,425 3,375 Total $71,550 $73,575 2,025 Previous fair value adjustment balance—Dr. 540 Fair value adjustment—Dr. $1,485 On January 20, 2021, Pharoah, Inc. sold security A for $20,385. The sale proceeds are net of brokerage fees. Prepare the adjusting entry at December 31, 2020, to report the portfolio at...
At December 31, 2020, the available-for-sale debt portfolio for Concord, Inc. is as follows. Security Cost...
At December 31, 2020, the available-for-sale debt portfolio for Concord, Inc. is as follows. Security Cost Fair Value Unrealized Gain (Loss) A $33,250    $28,500 $(4,750) B 23,750 26,600 2,850 C 43,700 48,450 4,750 Tota l$100,700 $103,550 2,850 Previous fair value adjustment balance—Dr .760 Fair value adjustment—Dr .$2,090 On January 20, 2021, Concord, Inc. sold security A for $28,690. The sale proceeds are net of brokerage fees. (a)    Prepare the adjusting entry at December 31, 2020, to report the...
At December 31, 2020, the available-for-sale debt portfolio for Flint, Inc. is as follows. Security Cost...
At December 31, 2020, the available-for-sale debt portfolio for Flint, Inc. is as follows. Security Cost Fair Value Unrealized Gain (Loss) A $35,000 $30,000 $(5,000 ) B 25,000 28,000 3,000 C 46,000 51,000 5,000 Total $106,000 $109,000 3,000 Previous fair value adjustment balance—Dr. 800 Fair value adjustment—Dr. $2,200 On January 20, 2021, Flint, Inc. sold security A for $30,200. The sale proceeds are net of brokerage fees. Part 1 Prepare the adjusting entry at December 31, 2020, to report the...
At December 31, 2020, the available-for-sale debt portfolio for Teal, Inc. is as follows. Security Cost...
At December 31, 2020, the available-for-sale debt portfolio for Teal, Inc. is as follows. Security Cost Fair Value Unrealized Gain (Loss) A $25,375 $21,750 $(3,625 ) B 18,125 20,300 2,175 C 33,350 36,975 3,625 Total $76,850 $79,025 2,175 Previous fair value adjustment balance—Dr. 580 Fair value adjustment—Dr. $1,595 On January 20, 2021, Teal, Inc. sold security A for $21,895. The sale proceeds are net of brokerage fees. Prepare the adjusting entry at December 31, 2020, to report the portfolio at...
At December 31, 2020, the available-for-sale debt portfolio for Crane, Inc. is as follows. Security Cost...
At December 31, 2020, the available-for-sale debt portfolio for Crane, Inc. is as follows. Security Cost Fair Value Unrealized Gain (Loss) A $17,600 $16,000 $(1,600 ) B 11,100 15,500 4,400 C 24,000 25,800 1,800 Total $52,700 $57,300 4,600 Previous fair value adjustment balance—Dr. 500 Fair value adjustment—Dr. $4,100 On January 20, 2021, Crane, Inc. sold security A for $16,100. The sale proceeds are net of brokerage fees. Crane, Inc. reports net income in 2020 of $124,000 and in 2021 of...
At December 31, 2020, the available-for-sale debt portfolio for Cullumber, Inc. is as follows. Security Cost...
At December 31, 2020, the available-for-sale debt portfolio for Cullumber, Inc. is as follows. Security Cost Fair Value Unrealized Gain (Loss) A $17,100 $14,600 $(2,500 ) B 12,500 15,100 2,600 C 22,500 26,000 3,500 Total $52,100 $55,700 3,600 Previous fair value adjustment balance—Dr. 400 Fair value adjustment—Dr. $3,200 On January 20, 2021, Cullumber, Inc. sold security A for $14,700. The sale proceeds are net of brokerage fees. Cullumber, Inc. reports net income in 2020 of $123,000 and in 2021 of...
The following securities are in Frederick Company’s portfolio of long-term available-for-sale securities at December 31, 2017.
The following securities are in Frederick Company’s portfolio of long-term available-for-sale securities at December 31, 2017.                                                                                                              Cost   1,000 shares of Willhite Corporation common stock.............................$52,000 1,400...
Stoll Co.’s long-term available-for-sale portfolio at December 31, 2016, consists of the following. Available-for-Sale Securities Cost...
Stoll Co.’s long-term available-for-sale portfolio at December 31, 2016, consists of the following. Available-for-Sale Securities Cost Fair Value 80,000 shares of Company A common stock $ 1,070,600 $ 980,000 14,000 shares of Company B common stock 318,750 308,000 35,000 shares of Company C common stock 1,325,500 1,281,875 Stoll enters into the following long-term investment transactions during year 2017. Jan. 29 Sold 7,000 shares of Company B common stock for $158,375 less a brokerage fee of $3,100. Apr. 17 Purchased 20,000...
Stoll Co.’s long-term available-for-sale portfolio at December 31, 2016, consists of the following. Available-for-Sale Securities Cost...
Stoll Co.’s long-term available-for-sale portfolio at December 31, 2016, consists of the following. Available-for-Sale Securities Cost Fair Value 80,000 shares of Company A common stock $ 1,039,600 $ 920,000 28,000 shares of Company B common stock 338,750 328,000 34,000 shares of Company C common stock 1,360,500 1,311,875 Stoll enters into the following long-term investment transactions during year 2017. Jan. 29 Sold 14,000 shares of Company B common stock for $168,375 less a brokerage fee of $3,400. Apr. 17 Purchased 21,000...
Stoll Co.’s long-term available-for-sale portfolio at December 31, 2016, consists of the following. Available-for-Sale Securities Cost...
Stoll Co.’s long-term available-for-sale portfolio at December 31, 2016, consists of the following. Available-for-Sale Securities Cost Fair Value 70,000 shares of Company A common stock $ 1,046,600 $ 915,000 42,000 shares of Company B common stock 352,750 342,000 41,000 shares of Company C common stock 1,385,000 1,332,875 Stoll enters into the following long-term investment transactions during year 2017. Jan. 29 Sold 21,000 shares of Company B common stock for $175,375 less a brokerage fee of $3,200. Apr. 17 Purchased 22,000...
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT