141.Noell Corp. has share capital of $5,000,000, retained earnings of $3,000,000, unrealized gains on trading securities of $100,000 and unrealized losses on non-trading securities of $200,000. What is the total amount of its equity?
a.$7,800,000
b.$8,000,000
c.$7,900,000
d.$8,100,000
142.Cost and fair value data for the trading securities of Clifford Company at December 31, 2014, are $100,000 and $79,000, respectively. Which of the following correctly presents the adjusting journal entry to record the securities at fair value?
a.Dec. 31Unrealized Loss?Income............. 21,000
Trading Securities 21,000
b.Dec. 31Unrealized Gain?Income............. 21,000
Trading Securities 21,000
c.Dec. 31Unrealized Loss?Income.............. 21,000
Fair Value Adjustment?Trading............................. 21,000
d.Dec. 31Fair Value Adjustment - Trading......... 21,000
Unrealized Gain-Income 21,000
SecurityCost Fair Value
X$90,000$92,000
Y150,000145,000
Z 32,00028,000
Mayfair should report the following amount related to the securities in its 2014 income statement:
a. $2,000 gain
b. $7,000 realized loss.
c. $7,000 unrealized loss.
d. $9,000 unrealized loss.
144.At December 31, 2014, Gregson Inc. has these data on its security investments:
Security Cost Fair Value 12/31/14
Trading $ 140,000 $172,000
Non-trading 137,000 125,000
If the non-trading securities are held as long-term investments, which of the following will be recorded to adjust the securities to fair value?
a. Securities..................................... 20,000
Unrealized Gain?Income................................. 20,000
b.Unrealized Loss?Income.......................... 12,000
Securities 20,000
Unrealized Gain?Income................................. 32,000
c.Fair Value Adjustment?Trading..................... 32,000
Unrealized Gain?Income................................. 32,000
Unrealized Gain or Loss?Equity........................... 12,000
Fair Value Adjustment?Non-Trading......................... 12,000
d.Unrealized Gain?Income......................... 32,000
Fair Value Adjustment?Trading............................. 32,000
Fair Value Adjustment?Non-Trading....................... 12,000
Unrealized Gain or Loss?Equity............................. 12,000
145.All of the following statements about short-term investments are true
except
a.Short-term investments are also called marketable securities
b.Trading securities are always classified as short-term investments.
c.Short-term investments are listed below accounts receivable in the current asset section of the statement of financial position.
d.Short-term assets must be readily marketable.
146.Non-trading securities are classified as
a.short-term investments only.
b.long-term investments only.
c.either short-term or long-term investments.
d.current assets only.
147.Short-term investments are securities that are readily marketable and intended to be converted into cash within the next
a.year.
b.two years.
c.year or operating cycle, whichever is shorter.
d.year or operating cycle, whichever is longer.
148.An unrealized gain or loss on non-trading securities is reported as a component of equity
a.because this discloses to the financial statement user the gain or loss that would result if the securities were sold at fair value.
b.because this treatment reduces the volatility of net income due to fluctuations in value.
c.in a line item either called "Reserves" or "Unrealized Gain or Loss."
d.All of these answer choices are correct.
a149.Balances which must be eliminated in preparing a consolidated statement of financial position include all of the following
except
a.the parent's Investment in Subsidiary account.
b.the book values of the subsidiary's assets.
c.the subsidiary's equity accounts.
d.intercompany receivables and payables.
a150.The equity account balances of Shiram Company and its 100% owned subsidiary, Bombay Inc. at December 31, 2014 are as follows:
AccountShiram Bombay
Share capital Rs4,596,000Rs3,165,000
Retained earnings 2,904,000 1,065,000
a.a debit to Share Capital – Shiram for Rs4,596,000.
b.a credit to Retained Earnings – Shiram for Rs2,904,000.
c.a debit to Share Capital – Bombay for Rs3,165,000.
d.a credit to Retained Earnings – Bombay for Rs1,065,000.
a