Student Name:
Class:
Debit Credit
Cash
Loss on sale of investments
Investment in Kansas Abstractors bonds
Gain on sale of investments
Investment revenue
December 20
Investment in U.S. Treasury bonds
Cash
Investment in NXS common shares
Cash
Cash
Cash
December 21
December 23
December 29
58
1.5
1.5 «- Correct!
18
18 «- Correct!
60
60 «- Correct!
Cash
December 1
Instructor
November 1
November 1
Cash
($ in millions)
General Journal
Investment in Holistic Entertainment bonds
2016
Investment revenue
AMALGAMATED GENERAL CORPORATION
October 18
October 31
Investment in Millwork Ventures preferred shares
Cash
Problem 12-07
McGraw-Hill/Irwin
Investment in Household Plastics bonds
Account
Cash
Student Name:
Class:
Debit Credit
Instructor
($ in millions)
General Journal
AMALGAMATED GENERAL CORPORATION
Problem 12-07
McGraw-Hill/Irwin
Account
Gain on sale of investments (U.S. Treasury bonds)
Loss on sale of investments (Kansas Abstractors)
Income summary (to balance)
Loss on sale of investments (to balance)
Investment in NXS common shares (account balance)
December 31
Net unrealized holding gains and losses-I/S
Fair value adjustment
0.3
2 «- Correct!
2.0
5.4
43
Cash
Investment revenue receivable – Holistic Entertainment
Accrued interest:
December 31
Investment revenue
Closing entry:
2017
January 7
Net unrealized holding gains and losses-I/S(NXS)
Net unrealized holding gains and losses-I/S
Net unrealized holding gains and losses-OCI
Fair value adjustment
Fair value adjustment
Investment revenue receivable – Household Plastics
Revaluations:
30,000,000$
10%
2016
2017
U. S. Treasury bonds sold
Dividend received from preferred shares (Millwork Ventures Company)
Market price per share for preferred stock (Millwork Ventures Company)
Market price per share (NXS Corporation)
Fair value of bonds (Household Plastics Corporation)
Fair value of bonds (Holistic Entertainment Enterprises)
Oct. 18 2,000,000
12%
20 5,600,000$
21 4,000,000
44,000,000$
Cost of common shares purchased (NXS Corporation)
Number of preferred shares purchased (Millwork Ventures Company)
Interest rate of bonds purchased (Household Plastics Corporation)
U.S. Treasury bonds purchased
Number of common shares purchased (NXS Corporation)
AMALGAMATED GENERAL CORPORATION
Additional information:
Securities (bonds) held 10/1 (Kansas Abstractors, Inc.)
Interest rate on bonds (Kansas Abstractors, Inc.)
Cost of preferred shares purchased (Millwork Ventures Company)
Semi-annual interest received (Kansas Abstractors, Inc.)
Bonds purchased (Holistic Entertainment Enterprises)
Interest rate of bonds purchased (Holistic Entertainment Enterprises)
Sold bonds (Kansas Abstractors, Inc.)
Bonds purchased (Household Plastics Corporation)
Student Name:
Class:
Debit Credit
324
324 «- Correct!
Debit Credit
Investment revenue
Net unrealized holding gains and losses-OCI
Fair value adjustment
Dividends
Cash
324
Problem 12-09
McGraw-Hill/Irwin
Instructor
Purchase
Account
Requirement 2:
RUNYAN BAKERY
Investment in Lavery Labeling shares
Cash
($ in millions)
General Journal
Purchase
Account
Requirement 1:
Investment in Lavery Labeling shares
Investment in Lavery Labeling shares
Investment revenue
Dividends
Investment in Lavery Labeling shares
Investment revenue
Investment in Lavery Labeling shares
30%
324,000,000$
10,000,000
Number of shares purchased
Purchase amount
Given Data P12-09:
RUNYAN BAKERY
Information re: Lavery Labeling stock purchase:
Percentage of outstanding common shares bought
Lavery net income, 2016
Dividend paid on 12/15/2016
Market value of common stock at 12/31/2016
Fair market book value of assets at purchase date
Assets – fair value over book value
Useful life of plant facilities
Student Name:
Class:
Debit Credit
Investment revenue
Depreciation adjustment
Investment in Vancouver T&M shares
Investment revenue
Investment in Vancouver T&M shares
400.0
400.0 «- Correct!
12.0
12.0 «- Correct!
Investment Revenue ($ in millions)
Debit Credit Balance
Depreciation
Inventory
56.0 56.0
Correct!
Investment in Vancouver T&M shares ($ in millions)
Debit Credit Balance
Requirement 4:
$400 million cash outflow from investing activities.
$12 million cash inflow (dividends) among operating activities.
Depreciation
Inventory
Dividends
400.0 400.0
56.0 456.0
Explanation
Requirement 3:
Explanation
Cost
Share of income
Share of income
Problem 12-12
McGraw-Hill/Irwin
Instructor
Purchase
Account
Requirement 1:
($ in millions)
General Journal
NORTHWEST PAPERBOARD COMPANY
Net income
Requirement 2:
Investment in Vancouver T&M shares
Cash
Cash
Investment in Vancouver T&M shares
Inventory adjustment
Investment in Vancouver T&M shares
Investment revenue
Dividends
40%
400,000,000$
Given Data P12-12:
NORTHWEST PAPERBOARD COMPANY
Percentage of outstanding common shares bought
Purchase amount
Book value of net assets
Inventory – fair value over book value
Plant – fair value over book value
Useful life of plant facilities
Net income, 2016
Cash dividend paid