What is the proper valuation for the trading and available-for-sale securities<\/p>\n
Financial Accounting
\nBCS has provided the auditor with the following information regarding their investment accounts: At 12\/31\/2011, Trading securities $400,000, Available-for-Sale Securities $500,000, Held-to-Maturity Securities $1,500,000. At 12\/31\/2012, Trading Securities $600,000, Available-for-Sale Securities $350,000, Held-to-Maturity Securities $2,000,000. Additional information: The market value of the trading securities was $450,000 on December 31, 2011 and $475,000 on December 31, 2012; the market value of the available for sale securities was $600,000 on December 31, 2011 and $250,000 on December 31, 2012.<\/p>\n
a. What is the proper valuation for the trading and available-for-sale securities on 12\/31\/11 and 12\/31\/12? (What value will appear on the balance sheet for these securities?)<\/p>\n
b. The trading securities held by the company at the end of 2011 were sold in 2012 for $450,000. What was the gain or loss recognized on the sale? Prepare the journal entry to record the sale.<\/p>\n
c. What is the impact on the income statement in 2011 and 2012 of holding these investment securities (show your calculation).<\/p>\n
d. How would you audit the balance in the held-to-maturity securities at the end of 2012? What is the appropriate valuation base for these securities?<\/p>\n
e. What is the impact of the held-to-maturity securities on the income statement for 2012?<\/p>\n","protected":false},"excerpt":{"rendered":"
What is the proper valuation for the trading and available-for-sale securities Financial Accounting BCS has provided the auditor with the following information regarding their investment accounts: At 12\/31\/2011, Trading securities $400,000, Available-for-Sale Securities $500,000, Held-to-Maturity Securities $1,500,000. At 12\/31\/2012, Trading Securities $600,000, Available-for-Sale Securities $350,000, Held-to-Maturity Securities $2,000,000. Additional information: The market value of the […]<\/p>\n","protected":false},"author":8,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[10591,9794,4029,9796,11586,11587],"tags":[3745,9588,9838,9839,1621,3760],"class_list":["post-86468","post","type-post","status-publish","format-standard","hentry","category-academic-research-bureau","category-best-assignment-help-in-australia","category-best-ideas-for-research-paper-topics-in","category-speedy-essays","category-write-my-paper-allassignmenthelp","category-11587","tag-assessment-australia","tag-dissertation-writing-help-for-students","tag-help-writing-week-discussion-post-responses","tag-kw","tag-write-a-page-paper","tag-write-a-word-essay"],"_links":{"self":[{"href":"https:\/\/www.colapapers.com\/us\/wp-json\/wp\/v2\/posts\/86468","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.colapapers.com\/us\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.colapapers.com\/us\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.colapapers.com\/us\/wp-json\/wp\/v2\/users\/8"}],"replies":[{"embeddable":true,"href":"https:\/\/www.colapapers.com\/us\/wp-json\/wp\/v2\/comments?post=86468"}],"version-history":[{"count":0,"href":"https:\/\/www.colapapers.com\/us\/wp-json\/wp\/v2\/posts\/86468\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.colapapers.com\/us\/wp-json\/wp\/v2\/media?parent=86468"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.colapapers.com\/us\/wp-json\/wp\/v2\/categories?post=86468"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.colapapers.com\/us\/wp-json\/wp\/v2\/tags?post=86468"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}