Accolades Cruise Company has two investment portfolios at the December 31, 2014 balance sheet date.


QUESTION :

Accolades Cruise Company has two investment portfolios at the December 31, 2014 balance sheet date. The securities contained in these portfolios are all equity securities and were purchased during 2014, Accolades’ first year of operations. None of the investments are accounted for by the equity method. No investments were sold during 2014. Details are as follows:

Don't use plagiarized sources. Get Your Custom Essay on
Accolades Cruise Company has two investment portfolios at the December 31, 2014 balance sheet date.
Just from $13/Page
Order Essay

December 31, 2014 Market $80,000 92,000 50,000 Difference $(20,000) 22,000 Cost $100,000 Stock of ABC Co Stock of DEF Co. Stock of GHI Co. 70,000 60,000 Total 230.000

image

Instructions

(a) Prepare the appropriate adjusting entry(s) at December 31, 2014.

(b) Explain how the data will be displayed on the balance sheet. Also, explain what will appear and where on the combined statement of comprehensive income for the year ending December 31, 2014. (Assume at the balance sheet date, Accolades has a balance of $400,000 in its Common Stock account, $600,000 in its Retained Earnings account, and $0 in Accumulated Comprehensive Income. Also, assume net income for 2014 is $92,000.)

(c) Assuming the stock of DEF Co. is sold for $94,000 on January 7, 2015 and the stock of STU Co. is sold for $141,000 on January 8, 2015, prepare the journal entries to record these sales and explain what will appear and where on the combined statement of comprehensive income for the year ending December 31, 2015.

Show transcribed image text

Expert Answer

 

Order a unique copy of this paper
(550 words)

Approximate price: $22

Basic features
  • Free title page and bibliography
  • Unlimited revisions
  • Plagiarism-free guarantee
  • Money-back guarantee
  • 24/7 support
On-demand options
  • Writer’s samples
  • Part-by-part delivery
  • Overnight delivery
  • Copies of used sources
  • Expert Proofreading
Paper format
  • 275 words per page
  • 12 pt Arial/Times New Roman
  • Double line spacing
  • Any citation style (APA, MLA, Chicago/Turabian, Harvard)

Our guarantees

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.

Money-back guarantee

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 more

Zero-plagiarism guarantee

Each 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 more

Free-revision policy

Thanks 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 more

Privacy policy

Your 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 more

Fair-cooperation guarantee

By 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

Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
$26
The price is based on these factors:
Academic level
Number of pages
Urgency

Order your essay today and save 15% with the discount code ESSAYHELP