The writer is very fast, professional and responded to the review request fast also. Thank you.
Elaina co. has the following investments as of Dec. 31, 2017: Investments in common stock of Laser Co.-$1,500,000; Investments in debt securities of FourSquare Co.-$3,300,000. In both investments, the carrying value and the fair value of these two investments are the same at Dec. 31, 2017. Elaina’s stock investments does not result in significant influence on the operations of Laser Co.. Elaina’s debt investments is considered held-to-maturity. At Dec. 31, 2018, the shares in Laser Co. are valued at $1,100,000; the debt investment securities of FourSquare Co. are valued at $2,500,000. Assume that these investments are considered impaired.
a) Prepare the journal entries to record the impairment of these two securities at Dec. 31, 2018.
b) Assuming the fair value of Laser shares is $1,400,000 and the value of its debt investment is $2,950,000, what entries, if any, should be recorded in 2019 related to impairment?
c) Prepare the journal entries at Dec. 31, 2018, assuming these securities are not impaired (Ignore interest revenue entries).
d) Assume that the debt investment in FourSquare Co. was available-for-sale and that the expected credit loss was $90,000. Prepare the journal entry to record this I’mpairment on Dec. 31, 2018.
Show more
Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.
You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.
Read moreEach paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.
Read moreThanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.
Read moreYour email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.
Read moreBy sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.
Read more