西方财务会计课后答案(第十四章)(126页DOC).docx

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1、最新资料推荐CHAPTER 13InvestmentsASSIGNMENT CLASSIFICATION TABLE最新精品资料整理推荐，更新于二二年十二月二十五日2020年12月25日星期五22:01:41BriefABStudy ObjectivesQuestionsExercisesExercisesProblemsProblems1. Discuss why corpora-tions invest in debt andstock securities.12. Explain the accounting2, 3, 4111A, 2A1B, 2Bfor debt investment

2、s.3. Explain the accountingfor stock investments.5, 6, 7, 8,9, 102, 32, 3, 4, 52A, 3A, 4A,5A2B, 3B, 4B,5B4. Describe the use ofconsolidated financialstatements.115. Indicate how debt andstock investments are12, 13, 14,15, 16, 17,4, 5, 6, 7,86, 7, 81A, 2A, 3A,5A, 6A1B, 2B, 3B,5B, 6Bvalued and reporte

3、d onthe financial statements.186. Distinguish between195, 7, 86, 7, 81A, 2A, 3A,1B, 2B, 3B,short-term and long-terminvestments.5A, 6A5B, 6B*7. Describe the content of a9, 109, 107A7Bwork sheet for a consoli-dated balance sheet.*8. Explain the form and20, 217A7Bcontent of consolidated fi-nancial stat

4、ements.*Note: All asterisked Questions, Exercises, and Problems relate to material contained in theappendix to the chapter.13-1ASSIGNMENT CHARACTERISTICS TABLEProblemDifficultyTimeNumber1ADescriptionJournalize debt investment transactions and showLevelModerateAllotted (min.)3040financial statement p

5、resentation.2AJournalize investment transactions, prepare adjustingModerate3040entry, and show statement presentation.3AJournalize transactions and adjusting entry for stockModerate3040investments.4APrepare entries under the cost and equity methods, andSimple2030tabulate differences.5AJournalize sto

6、ck investment transactions and show state-Moderate4050ment presentation.6A*7APrepare a balance sheet.Prepare consolidated work sheet and balance sheetModerateSimple30403040when cost exceeds book value.1BJournalize debt investment transactions and showModerate3040financial statement presentation.2BJo

7、urnalize investment transactions, prepare adjustingModerate3040entry, and show statement presentation.3BJournalize transactions and adjusting entry for stockModerate3040investments.4BPrepare entries under the cost and equity methods, andSimple2030tabulate differences.5BJournalize stock investment tr

8、ansactions and show state-Moderate4050ment presentation.6B*7BPrepare a balance sheet.Prepare consolidated work sheet and balance sheet whenModerateSimple30403040cost exceeds book value.13-2BLOOMS TAXONOMY TABLE13-3Correlation Chart between Blooms Taxonomy, Study Objectives and End-of-Chapter Exercis

9、es and ProblemsKnowledgeComprehensionApplicationAnalysisSynthesisEvaluationStudy Objective1. Discuss why corporations invest in Q13-1debt and stock securities.Q13-2Q13-3Q13-4Q13-5Q13-8Q13-9Q13-10Q13-6BE13-2BE13-3E13-2E13-3E13-4 E13-5P13-2AP13-3AP13-4AP13-5AP13-2BP13-3BP13-4BP13-5BE13-1P13-1AP13-2AP1

10、3-1BP13-2BBE13-12. Explain the accounting for debtinvestments.Q13-73. Explain the accounting for stockinvestments.4. Describe the use of consolidatedfinancial statements.Q13-12Q13-17Q13-13Q13-18Q13-115. Indicate how debt and stockinvestments are valued andreported on the financialstatements.Q13-19BE

11、13-7BE13-8P13-6AP13-6BQ13-20Q13-21Financial ReportingComparative AnalysisExploring the WebCommunicationP13-7AP13-7BQ13-14Q13-16BE13-4BE13-7BE13-8P13-6AP13-6BQ13-15BE13-5BE13-6E13-6E13-7E13-8P13-1ABE13-5E13-6E13-7E13-8P13-1AP13-2AE13-10BE13-9BE13-10 P13-7AP13-7BE13-9P13-2AP13-3AP13-5AP13-1BP13-2BP13-

12、3BP13-5BP13-3AP13-5AP13-1BP13-2BP13-3BP13-5B6. Distinguish between short-termand long-term investments.*7. Describe the content of a worksheet for a consolidated balancesheet*8. Explain the form and content ofconsolidated financial statements.Broadening Your PerspectiveInterpreting Financial Researc

13、h Case Ethics CaseA Global Focus CookieStatementsChronicleGroup Decision CaseANSWERS TO QUESTIONS1.2.3.4.5.6.The reasons corporations invest in securities are: (1) they have excess cash not needed for op-erations that can be invested, (2) to generate additional earnings, and (3) strategic reasons.(a

14、) The cost of an investment in bonds consists of the market price of the bonds plus any bro-kerage fees.(b) Interest is recorded as it is earned; that is, over the life of the investment in bonds.(a) Losses and gains on the sale of debt investments are computed by comparing the costof the bonds to t

15、he net proceeds from the sale.(b) Losses are reported in the income statement under other expenses and losses whereasgains are reported under other revenues and gains.Sablow Company is incorrect. The gain is the difference between the net proceeds, exclusive ofinterest, and the cost of the bonds. Th

16、e correct gain is $4,000, or ($45,000 $1,000) $40,000.The cost of an investment in stock includes all expenditures necessary to acquire the invest-ment. These expenditures include the actual purchase price plus any commissions or broker-age fees.Brokerage fees are part of the cost of the investment.

17、 Therefore, the entry is:Stock Investments .Cash.63,50063,5007.8.9.10.(a) Whenever the investors influence on the operating and financial activities of the investee issignificant, the equity method should be used. The major factor in determining significantinfluence is the percentage of ownership in

18、terest held by the investor in the investee. Thegeneral guideline for use of the equity method is 20% or more ownership interest. Compa-nies are required to use judgment, however, rather than blindly follow the 20% guideline. Forexample, 25% ownership in a company that is 75% controlled by another o

19、rganization wouldnot indicate significant influence.(b) Revenue is recognized as it is earned by the investee.Since Diaz Corporation uses the equity method, the income reported by Victor Packing ($80,000)should be multiplied by Diazs ownership interest (25%) and the result ($20,000) should be deb-it

20、ed to Stock Investments and credited to Revenue from Investment in Victor Packing. Also, of thetotal dividend declared and paid by Victor ($10,000) Diaz will receive 25% or $2,500. Thisamount should be debited to Cash and credited to Stock Investments.Significant influence over an investee may resul

21、t from representation on the board of directors,participation in policy-making processes, and material intercompany transactions. An investment(direct or indirect) of 20% or more of the voting stock of an investee constitutes significant influ-ence unless there exists evidence to the contrary.Under

22、the cost method, an investment is originally recorded and reported at cost. Dividends arerecorded as revenue. In subsequent periods, it is adjusted to fair value and an unrealized holdinggain or loss is recognized and included in income (trading security) or as a separate componentof stockholders eq

23、uity (available-for-sale security). Under the equity method, the investment is13-4Questions Chapter 13 (Continued)originally recorded and reported at cost; subsequently, the investment account is adjusted dur-ing each period for the investors share of the earnings or losses of the investee. The inve

24、storsshare of the investees earnings is recognized in the earnings of the investor. Dividendsreceived from the investee are reductions in the carrying amount of the investment.11.12.Consolidated financial statements present the details of the assets and liabilities controlled bythe parent company an

25、d the aggregate profitability of the affiliated companies.The valuation and reporting of investments is as follows:CategoryTradingAvailable-for-saleValuation and ReportingAt fair value with changes reported in net incomeAt fair value with changes adjusted through stockholders equityAdditionally, deb

26、t securities which are intended to be held to maturity will be reported atamortized cost.Investments recorded under the equity method are reported at their carrying value. The car-rying value is the cost adjusted for the investors share of the investees income and divi-dends received.13.Jane should

27、report the data as follows:(1)Under current assets in the balance sheet:Short-term investment, at fair value.$72,000)(2)Under other expenses and losses in the income statement:Unrealized loss on trading securities .$2,000)14.Jane should report the data as follows:(1)Under investments in the balance

28、sheet:Investment in stock of less than 20% owned companies, at fair value .$72,000)(2)Under stockholders equity in the balance sheet:Less: Unrealized loss on available-for-sale securities.$(2,000)15.The entry is:Market AdjustmentAvailable-for-Sale.Unrealized Gain or LossEquity.15,00015,00016.The ent

29、ry is:Market AdjustmentTrading .Unrealized GainIncome .15,00015,00017.Unrealized LossEquity is reported as a deduction from stockholders equity. The unrealizedloss is not included in the computation of net income.13-5Questions Chapter 13 (Continued)18. Reporting Unrealized Gains (Losses)Equity in th

30、e stockholders equity section serves twoimportant purposes: (1) it reduces the volatility of net income due to fluctuations in fair value,and (2) it informs the financial statement user of the gain or loss that would occur if the secu-rities were sold at fair value.19. The investment in Ivy Corporat

31、ion stock is a long-term investment because there is no intentto convert the stock into cash within a year or the operating cycle, whichever is longer.*20. (a)(b)The parent companys investment in the subsidiarys common stock and the subsidiarysstockholders equity account balances are eliminated.The

32、Investment account represents an interest in the net assets of the subsidiary. The bal-ance sheet of the subsidiary lists all its assets and liabilities (the net assets). Therefore,there would be a double counting of net assets. Similarly, there would be a double countingin stockholders equity becau

33、se all the common stock of the subsidiary is owned by thestockholders of the parent.*21. The remaining excess $8,000, $318,000 ($290,000 + $20,000) should be allocated togoodwill and presented in the consolidated balance sheet as Intangible assetsGoodwill.13-6SOLUTIONS TO BRIEF EXERCISESBRIEF EXERCI

34、SE 13-1Jan. 1July 1Debt Investments .Cash.Cash.Interest Revenue.46,8002,34046,8002,340BRIEF EXERCISE 13-2Aug. 1Dec. 1Stock Investments .Cash.Cash.Stock Investments .Gain on Sale of Stock Investments .35,60040,00035,60035,6004,400BRIEF EXERCISE 13-3Dec. 3131Stock Investments .Revenue from Investment

35、in HydeCompany (30% X $180,000) .Cash (30% X $50,000).Stock Investments .54,00015,00054,00015,000BRIEF EXERCISE 13-4Dec. 31Unrealized LossIncome .Market AdjustmentTrading .($64,000 $59,000)13-75,0005,000BRIEF EXERCISE 13-5Balance SheetCurrent assetsShort-term investments, at fair value.Income Statem

36、entOther expenses and lossesUnrealized loss on trading securities .BRIEF EXERCISE 13-6$59,000(5,000)Dec. 31Unrealized Gain or LossEquity .Market AdjustmentAvailable-for-Sale .4,0004,000The unrealized loss is reported as a deduction from stockholders equity.BRIEF EXERCISE 13-7Balance SheetInvestmentsInvestment in stock of less than 20% ownedcompanies, at fair value .Stockholders equityLess unrealized loss on available-for-sale securities .BRIEF EXERCISE 13-8InvestmentsInv