西方财务会计课后答案(第十四章)

CHAPTER13InvestmentsASSIGNMENTCLASSIFICATIONTABLEBriefABStudyObjectivesQuestionsExercisesExercisesProblemsProblems1.Discusswhycorpora-tionsinvestindebtandstocksecurities.12.Explaintheaccounting2,3,4111A,2A1B,2Bfordebtinvestments.3.Explaintheaccountingforstockinvestments.5,6,7,8,9,102,32,3,4,52A,3A,4A,5A2B,3B,4B,5B4.Describetheuseofconsolidatedfinancialstatements.115.Indicatehowdebtandstockinvestmentsare12,13,14,15,16,17,4,5,6,7,86,7,81A,2A,3A,5A,6A1B,2B,3B,5B,6Bvaluedandreportedonthefinancialstatements.186.Distinguishbetween195,7,86,7,81A,2A,3A,1B,2B,3B,short-termandlong-terminvestments.5A,6A5B,6B*7.Describethecontentofa9,109,107A7Bworksheetforaconsoli-datedbalancesheet.*8.Explaintheformand20,217A7Bcontentofconsolidatedfi-nancialstatements.*Note:AllasteriskedQuestions,Exercises,andProblemsrelatetomaterialcontainedintheappendixtothechapter.13-1ASSIGNMENTCHARACTERISTICSTABLEProblemDifficultyTimeNumber1ADescriptionJournalizedebtinvestmenttransactionsandshowLevelModerateAllotted(min.)3040financialstatementpresentation.2AJournalizeinvestmenttransactions,prepareadjustingModerate3040entry,andshowstatementpresentation.3AJournalizetransactionsandadjustingentryforstockModerate3040investments.4APrepareentriesunderthecostandequitymethods,andSimple2030tabulatedifferences.5AJournalizestockinvestmenttransactionsandshowstate-Moderate4050mentpresentation.6A*7APrepareabalancesheet.PrepareconsolidatedworksheetandbalancesheetModerateSimple30403040whencostexceedsbookvalue.1BJournalizedebtinvestmenttransactionsandshowModerate3040financialstatementpresentation.2BJournalizeinvestmenttransactions,prepareadjustingModerate3040entry,andshowstatementpresentation.3BJournalizetransactionsandadjustingentryforstockModerate3040investments.4BPrepareentriesunderthecostandequitymethods,andSimple2030tabulatedifferences.5BJournalizestockinvestmenttransactionsandshowstate-Moderate4050mentpresentation.6B*7BPrepareabalancesheet.PrepareconsolidatedworksheetandbalancesheetwhenModerateSimple304030costexceedsbookvalue.13-2CorrelationChartbetweenBloom’sTaxonomy,StudyObjectivesandEnd-of-ChapterExercisesandProblemsKnowledgeComprehensionApplicationAnalysisSynthesisEvaluationStudyObjective1.DiscusswhycorporationsinvestinQ13-1debtandstocksecurities.Q13-2Q13-3Q13-4Q13-5Q13-8Q13-9Q13-10Q13-6BE13-2BE13-3E13-2E13-3E13-4E13-5P13-2AP13-3AP13-4AP13-5AP13-2BP13-3BP13-4BP13-5BE13-1P13-1AP13-2AP13-1BP13-2BBE13-12.Explaintheaccountingfordebtinvestments.Q13-73.Explaintheaccountingforstockinvestments.4.Describetheuseofconsolidatedfinancialstatements.Q13-12Q13-17Q13-13Q13-18Q13-115.Indicatehowdebtandstockinvestmentsarevaluedandreportedonthefinancialstatements.Q13-19BE13-7BE13-8P13-6AP13-6BQ13-20Q13-21FinancialReportingComparativeAnalysisExploringtheWebCommunicationP13-7AP13-7BQ13-14Q13-16BE13-4BE13-7BE13-8P13-6AP13-6BQ13-15BE13-5BE13-6E13-6E13-7E13-8P13-1ABE13-5E13-6E13-7E13-8P13-1AP13-2AE13-10BE13-9BE13-10P13-7AP13-7BE13-9P13-2AP13-3AP13-5AP13-1BP13-2BP13-3BP13-5BP13-3AP13-5AP13-1BP13-2BP13-3BP13-5B6.Distinguishbetweenshort-termandlong-terminvestments.*7.Describethecontentofaworksheetforaconsolidatedbalancesheet*8.Explaintheformandcontentofconsolidatedfinancialstatements.BroadeningYourPerspectiveInterpretingFinancialResearchCaseEthicsCaseAGlobalFocusCookieStatementsChronicleGroupDecisionCaseBLOOM'STAXONOMYTABLE13-3ANSWERSTOQUESTIONS1.2.3.4.5.6.Thereasonscorporationsinvestinsecuritiesare:(1)theyhaveexcesscashnotneededforop-erationsthatcanbeinvested,(2)togenerateadditionalearnings,and(3)strategicreasons.(a)Thecostofaninvestmentinbondsconsistsofthemarketpriceofthebondsplusanybro-keragefees.(b)Interestisrecordedasitisearned;thatis,overthelifeoftheinvestmentinbonds.(a)Lossesandgainsonthesaleofdebtinvestmentsarecomputedbycomparingthecostofthebondstothenetproceedsfromthesale.(b)Lossesarereportedintheincomestatementunderotherexpensesandlosseswhereasgainsarereportedunderotherrevenuesandgains.SablowCompanyisincorrect.Thegainisthedifferencebetweenthenetproceeds,exclusiveofinterest,andthecostofthebonds.Thecorrectgainis$4,000,or[($45,000–$1,000)–$40,000].Thecostofaninvestmentinstockincludesallexpendituresnecessarytoacquiretheinvest-ment.Theseexpendituresincludetheactualpurchasepriceplusanycommissionsorbroker-agefees.Brokeragefeesarepartofthecostoftheinvestment.Therefore,theentryis:StockInvestments......................................................................................................Cash.....................................................................................................................63,50063,5007.8.9.10.(a)Whenevertheinvestor’sinfluenceontheoperatingandfinancialactivitiesoftheinvesteeissignificant,theequitymethodshouldbeused.Themajorfactorindeterminingsignificantinfluenceisthepercentageofownershipinterestheldbytheinvestorintheinvestee.Thegeneralguidelineforuseoftheequitymethodis20%ormoreownershipinterest.Compa-niesarerequiredtousejudgment,however,ratherthanblindlyfollowthe20%guideline.Forexample,25%ownershipinacompanythatis75%controll