Nama:Amelia putri adibda

Nim:0502202098
Kelas: Akuntansi syariah 4b

PROBLEM 17-5
(a) Gross selling price of 3,000 shares at $22.............. $66,000
Commissions, taxes, and fees................................. (2,150)
Net proceeds from sale............................................ 63,850
Cost of 3,000 shares................................................. (58,500)
Gain on sale of investments.................................... $5,350

January 15, 2018

Cash......................................................................... 63,850
Equity Investments........................................... 58,500
Gain on Sale of Investments............................ 5,350

(b) The total purchase price is:

(1,000 X $33.50) + $1,980 = $35,480.

The purchase entry will be:

17-Apr-18
Equity Investments.......................................... 35,480
Cash.................................................................... 35,480

(c) Equity Securities Portfolio—December 31, 2018

Fair Value Unrealized

Securities Cost Gain (Loss)
Munter Ltd. $580,000 $610,000* $30,000
King Co. 255,000 240,000** (15,000)
Castle Co. 35,480 29,000*** (6,480)
Total of portfolio $870,480 $879,000 8,520
Previous fair value
adjustment balance—Cr. (10,100)
Fair value adjustment—Dr. $18,620

***$61 × 10,000
***$40 × 6,000
***$29 × 1,000

December 31, 2018

Fair Value Adjustment.................................. 18,620
Unrealized Holding Gain or Loss—Income..... 18,620
(d) The unrealized holding gains or losses should be reported on the
income statement in the “Other revenue and gains” section. On the
balance sheet, the equity securities are classified as noncurrent given
that management intends to hold these securities for more than one
year
 PROBLEM 17-6
(1) October 10, 2010
Cash (5,000 X $54)................................ 270,000
Gain on Sale of Investments................... 55,000
Equity Investments.................................. 215,000

(2) 2-Nov-10
Equity Investments ................................. 163,500
Cash (3,000 X $54.50)............................... 163,500

(3) At September 30, 2017, McElroy had the following fair value
adjustment:

Equity Securities Portfolio—September 30, 2010

Unrealized
Securities Cost Fair Value Gain (Loss)
Horton, Inc. common $215,000 $200,000 ($(15,000)
Monty, Inc. preferred 133,000 140,000 7,000
Oakwood Corp. common 180,000 179,000 (1,000)
Total of portfolio $528,000 $519,000 (9,000)
Previous fair value adjustment
balance 0
Fair value adjustment—Cr. ($ (9,000)

At December 31, 2017, McElroy had the following fair value

adjustment:

Securities Portfolio—December 31, 2010

Unrealized
Securities Cost Fair Value Gain (Loss)
Monty, Inc. preferred $133,000 $106,000 ($(27,000)
Oakwood Corp. common 180,000 193,000 13,000
Patriot common 163,500 132,000 (31,500)
Total of portfolio $476,500 $431,000 (45,500)
Previous fair value adjustment
balance—Cr. (9,000)
Fair value adjustment—Cr. ($(36,500)

The entry on December 31, 2017 is therefore as follows:

Unrealized Holding Gain or Loss—Income...... 36,500

Fair Value Adjustment ................................ 36,500
(b) The entries would be the same except that instead of debiting and
crediting accounts associated with trading investments, the accounts
used would be associated with non-trading investments. In addition, the
Unrealized Holding Gain or Loss — Equity account is used instead of
Unrealized Holding Gain or Loss — Income. The unrealized holding loss
in this case would be deducted from the equity section rather than
charged to the income statement
 PROBLEM 17-7
(a) February 1
Debt Investments................................................... 300,000
Interest Revenue (4/12 X .10 X $300,000)................ 10,000
Cash.................................................................... 310,000

Apr-01
Cash........................................................................... 15,000
Interest Revenue ($300,000 X .10 X 6/12)........ 15,000

July 1
Debt Investments...................................................... 200,000
Interest Revenue (1/12 X .09 X $200,000)................ 1,500
Cash.................................................................... 201,500

Sep-01
Cash [($60,000 X .99) + ($60,000 X .10 X 5/12)]....... 61,900
Loss on Sale of Investments ................................... 600
Debt Investments............................................... 60,000
Interest Revenue
(5/12 X .10 X $60,000 = $2,500)..................... 2,500

October 1
Cash [($300,000 – $60,000) X .10 X 6/12]................. 12,000
Interest Revenue................................................ 12,000

December 1
Cash ($200,000 X .09 X 6/12).................................... 9,000
Interest Revenue................................................ 9,000

December 31
Interest Receivable.................................................. 7,500
Interest Revenue.............................................. 7,500
(3/12 X $240,000 X .10 = $6,000)
(1/12 X $200,000 X .09 = $1,500)
($6,000 + $1,500 = $7,500)

December 31
Unrealized Holding Gain or Loss—Equity............. 26,000
Fair Value Adjustment...................................... 26,000

Available-for-Sale Portfolio

Fair ValueUnrealized
Securities Cost Gain (Loss)
 Gibbons Co $240,000 $228,000*$(12,000)
Sampson, Inc.200,000 186,000** (14,000)
Total $440,000 $414,000 $(26,000)

*$240,000 X 95%
**$200,000 X 93%

(Note to instructor: Some students may debit Interest Receivable at date

of purchase instead of Interest Revenue. This procedure is correct,
assuming that when the cash is received for the interest, an appropriate
credit to Interest Receivable is recorded.)

(b) All the entries would be the same, except held-to-maturity securities
would be carried at amortized cost and not valued at fair value at year-
end, so the last entry would not be made.

(c) If Wildcat elects the fair value option for these investments, they would
need to record an unrealized gain or loss each year. The unrealized
gain (loss) would be the difference between the investments amortized
cost and their year-end fair value