COMPLETION STATEMENTS
204. Debt investments are investments in government and _____________ bonds.
205. Cost of debt investments includes the price paid plus ______________
206. When an investor owns between 20% and 50% of the ordinary shares of a corporation, it is generally presumed that the investor has _______________ influence over the investee and therefore, the appropriate method of accounting for this type of investment is the _______________ method.
207. Under the cost method, dividends received from an investee company are credited to the_______________ account, whereas under the equity method, dividends received from an investee company are credited to the _______________ account.
208. At the beginning of the year, Grant Corporation acquired 15% of Ernst Company ordinary shares for $300,000. Ernst Company reported net income for the year of $75,000 and paid $25,000 cash dividends during the year. The balance of the Share Investments account on the books of Grant Corporation at the end of the year should be $___________.
209. A company that owns more than 50% of the ordinary shares of another company is known as the ______________ company and _____________ financial statements are usually prepared.
210. _______________ securities are held with the intent of selling them sometime in the future.
211. Fair Value Adjustment is a valuation ______________ account which is ______________ to (from) the cost of the investments.
212. At the end of an accounting period, if the fair value of the trading securities portfolio is less than its cost, then the company should recognize an ______________ which is reported on the _________________.
213. An unrealized loss on trading securities is reported under Other ____________________ on the income statement.
214. An unrealized gain or loss on non-trading securities is reported as a separate component of _________________.
215. Short-term investments are securities that are _____________ and ______________ to be converted into cash within the next year or operating cycle, whichever is longer.